How can we monetize the Android application with ads?

There are many known ways to monetize your app. Some of the ways are given below.

A. AdMob
Google's AdMob is one of the biggest mobile ad platforms available in the industry. The app developers can choose the ads and the formats most relevant to their product. AdMob can be used to advertise your product in other apps.
B. StartApp
This StartApp gives a chance to the developer to integrate a mobile search engine add-on into their app. Developers can instantly share in the revenue generated from user searches. StartApp is currently downloaded over 250 million times.
C. InMobi
InMobi is a performance-based ad network. InMobi is one of the largest independent mobile advertisers in the world.
D. Millennial Media
This is very well known for its premium ads. Developers have the choice of running many adds. Millennial won Mobile Marketing Campaign of the Year awards many times.,
5. Tapjoy
Tapjoy gives you to participate in a called Mobile Value Exchange. More than 110 million mobile users are taking part in this kind of incentivization program. Tapjoy claims that developers have seen a 50-300 percent increase in monetization.

Once a person has created an android application, he can offer his app free for advertising . There are many platforms which can be used by the app owner in this context. Some of them are AdMob, InMobi, Millennial Media, and TapJoy etc though there are many more like that. When the app user clicks on the advertisement the app owner would share the revenue with the advertiser. Let us see an example of an app which suppose worldwide 600000 people view in a month. It means ads are seen 600000 times in a month. This is known as impressions. Out of this how many times user has clicked matters most and suppose out of this 1000 users clicked the advertisement. So for every click you get say $0.03 (this rate would differ from ad to ad and platform to platform) and your revenue for the month becomes $30. One should remember that there are many apps in the internet but as the clicks on the advertisements are very occasional, it is not easy to earn a good amount from this arrangement. Only a few top apps might be earning a good amount.

For the gaming apps there is one another way to monetise and that is to have in-app purchases and premium upgrades mechanism inside the app and one has to monitor it and attend to the user needs time to time. This is a good model but requires a lot of coordination and administering work.

Another option is set the price of your app and upload it in Google Play store and offer it to user. If app is really useful, the users would purchase it and you get the money. You may have to upload a lite demo version of your app for the user so that he can test it before purchase. Once he pays for it he can download the paid version. There are many apps in the Google store that users purchase for their use. Some of the top paid apps today are Minecraft, TuneIn Radio Pro, Plex for Android, Monopoly, Plants vs. Zombies etc.

Developing an app and marketing through the Google Play store can be a good way to earn cash for your app, but we need to understand which model suits the best to earn more cash. Either you can give it as a free or paid model. For free versions, the CTR(Click Through Rate) need to be good to get paid monthly payment. Sometimes people do not often spend so much time on the app if the app is not interesting. You need to have 50,000 impressions to get a $3000 money in your pocket.
Different ads will have different CTR levels, so choosing the right ad can only bring proper income for you. Monetization through the paid ads can be simple. You need to just upload your app and set the price and regions where you target your app and then just publish the app. For pricing models, we need to market the app more heavily because the consumers are not aware of the content of the app. First, we can give a base model as free and then go for the full version as paid one. It can improve the credibility and authenticity of the app.