There are two models of application for mobile apps:- Paid mobile applications and Free mobile applications. With paid application the revenue stream is clear – develop an application which people want and will to pay for it. With free applications, the ways to generate effective revenue streams are more limited; one may develop a free application that people what but since mobile application is worth free it will not generate any revenue of its own.

Developers that want to monetize free mobile applications do still have options available, the first it to develop some free versions or those paid apps which can be distributed first. Those free versions then push the interested people to buy the full app as per requirement. Although as per media marketing experts this is not a very good solution since this means developing an maintaining two separate versions of the application.

You can also advertiser applications and services, advertising in mobile applications is nothing new technology, for example many of free mobile phone applications features adverts in cut scenes, options screens or paid gaming options etc. this is one of the easy way to monetize the free mobile applications. Google mobile adsense abstracts away all the difficult tasks associated with building an advertising model, it feeds attractive and subtitle text and image ads, with standard sizes. The exact dimensions of each ad are fixed to 320px wide by 50px high.

Mobile adsense is quick and easy to add up to your mobile application interface and the developers you have get full control over the ads showing up where they are placed in app you can make your you serving appropriate and optimized ads which paying you better.

Advertisers can already have their ads featured in mobile applications; when creating a new campaign there is an option to target ‘i-phone and other related devices and other internet browsers’. Everything is managed through usual Adwords interface, and campaigns with similar features. One can also have similar tracking supporting tools like a usual site targeted campaigns.

As an advertiser one can easily bid on the ads that target keywords, a particular demographic or location (Geo, city etc) or even do direct placement for specific application. This provides advertiser with range of options to maximize the revenue generated by the campaign.