Free Mobile Applications Making Revenue via Advertisements

One question which recently came up during a mobile application development meeting was: How do mobile application development companies/mobile application developers that offer their mobile apps for free on mobile application marketplaces (such as Apple’s iTunes mobile application marketplace or Google’s android Mobile App development marketplace) make money/revenue? This question is a common question that often comes up because of the fact that so many mobile applications in various marketplaces that are offered for free. While the general perception has been that only mobile applications which are paid for are the ones which make money, the truth is that “Free” mobile applications also generate a lot of revenue (if not more than “paid” mobile applications) and can be profitable in the long run.

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The main avenues which free mobile applications make their revenue and increase profits is by selling advertisement slots to other companies who wish to put an advertisement on a specific mobile application. An advertisement can then be inserted as a pop-up mobile application ad, an audio mobile application ad, or a mobile application advertisement that is inserted somewhere on the user interface of the mobile application. From there, whenever an individual started that specific mobile application and uses the mobile app, the advertisement will appear on the screen for the individual to view. From there the individual will have the option to close the advertisement or press on the advertisement to be directed to the website associated with the advertisement.

When mobile application development firms or mobile application developers decide to offer advertisements on their mobile applications, they can either earn revenue by how many individuals click on the advertisement (similar to “Pay Per Click”) or they can make revenue for simply having the advertisement show on the mobile application user interface screen. Either way, the mobile application development firm or mobile application developer will be gaining some sort of revenue and income from the mobile advertisement which is shown on the mobile app.

Many companies who have decided to advertise on mobile applications have seen great benefits from this strategy as they are able to target market specific advertisements to specific individuals. For example, many major car companies will have advertisements their cars on mobile applications which relate to cars, automobile repair, traffic and road conditions and so forth. Or another example is that toy stores would have their advertisements on mobile gaming applications for young children where they know that the chances are that they will be reaching a younger audience. Mobile Application Advertising is a great way to target market specific ads based on specific user preferences or even based on their location.

The future for mobile applications is rising at an alarming rate and now that they can bring advertising into the mix, the mobile app industry is expected to take off even more than previously expected. With so much revenue and money being brought in by mobile applications, many mobile application development firms and mobile application developers feel confident that they are in an industry where job security is not an issue and the demand for their services will continue to grow. At the same time, many companies have been using mobile applications as one of their primary ways of reaching a larger audience. The future is certainly bright for the mobile application industry and advertisements as well as marketing are only helping out more.

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