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 web-behemoth has expanded its field testing and is playing with contextual ads for both platforms. 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.”” As long as the ad is seamlessly integrated within the chosen applications, there is significant probability that the consumer will check it out, thereby giving the application developer and Google an opportunity to generate some serious revenue.

While Google is keeping a lid on things at the moment, and only proceeding in beta with a small group of highly qualified partners, it has (as always) a distinct advantage in this marketplace. At some point, Google will open up and allow marketers to choose mobile applications as part of their personal AdSense campaigns, and when they do, bidding will rise significantly and ad rates will likely sky rocket.

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 maximising the profitability of failing businesses with his own unique ‘bottom line’ method. Adam, along with his brother, have established, bought and then sold on an assortment of companies in recent years. At present, they own and operate a very successful publishing company and variety of online businesses.

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