Mobile in-app ads are growing at about 60 percent a year and are expected to surpass PC online display ad revenue by 2017, according to a report by market researchers IDC and AppAnnie.

Mobile app stores (iOS and Google Play) grew revenue by 2.3 times in 2013, while mobile in-app ads grew at 60 percent, outpacing the 50 percent growth for mobile browser ads and the 10 percent growth for PC browser-based ads. About 40 percent of developers use in-app ads in their apps.

Mobile apps, especially games, are monetizing well through free-to-play (a kind of freemium model) and in-app ads. Most of the key markets in the world are expected to move quickly toward in-app advertising models.

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