We should have realized that it would only be a period of time before the Google AdSense machine began to link up to mobile applications. There has been a predictable explosion in interest for smartphone applications and it would seem that the sky is the limit. Downloadable applications proliferate for Apple iPhone and Android platforms.

Google is currently pushing into the mobile ad market, as they’ve recently been testing text and graphical ads in a private beta form. The Internet giant has dramatically increased its field testing and is now exploring contextual ads for each platform. According to Google the ads can be targeted by “applications, locations, categories or keywords.”

Program developers have the ability to insert a snippet of code within specific applications, thereby allowing the iPhone and Android powered handsets to display all sorts of ads. This links the application with the Google ad network and paves the way for significant earning potential in the future.

One of the challenges associated with the approach is, as always, to get past the typical consumer “ad resistance”. Harold Steinberg, director of business development for Urbanspoon (one of Google’s startup development partners in the venture) concurs. “What we are looking for… is to allow the user to look at the whole application as one and not say, “oh, that’s an ad, I’m not going to pay attention to it.”” If the ad is successfully integrated within the application there is more chance that the consumer will interact with it thus allowing the application developer and Google to make money.

Whilst Google is keeping things small right now and only working in beta with a small number of highly qualified partners, it has (as usual) a clear advantage in this marketplace. When Google opens up and allows marketers to select mobile applications as part of their overall AdSense campaigns, bidding will increase significantly and ad rates will go up.

As the smart phone market continues to see incredible growth – and the future looks particularly bright, you can expect there to be world wide interest in this platform and unprecedented earnings potential up for grabs. Mobile application usage is expected to quadruple in five years and Google is perhaps banking on the fact that those eyeballs will be drawn to mobile AdSense.

Adam Toren, Co-Founder of Young Entrepreneur, specializes in developing the profitability of struggling businesses with a specialised and ‘bottom line’ approach. Adam, along with his brother, have created, purchased and sold a variety of companies over the years. At the moment, they own and manage a highly successful publishing company and several dedicated online enterprises.

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