According to a recent Geekaphone news report, mobile gaming technologies such as iPhone game development are one of the fastest growing technology sectors in 2011. To prove this, all one needs to do is look at over Industry numbers close: Revenue in the mobile entertainment industry is expected to reach $8 billion in 2011. In 2014, revenue is expected to exceed $11 billion. Furthermore, these are the most popular paid apps on the Apple App Store, accounting for 72% of all downloads of the most popular apps.

But it’s not just the revenue that comes from iPhone games that is expected to increase in the coming years. Android game development is also in full swing. However, these figures leave many people wondering: where exactly is the money coming from? After all, 81% of all downloads are free games like Angry Birds. There are other ways to monetize a game besides having a user pay for it up front.

Consider this: very few mobile users would be willing to spend $40 on a mobile video game, even if this is what console or PC games would normally cost. An important source of income for game companies is advertising. They put ads in various places in the game, such as during the home screen when the game is loading or between levels. When you have millions of players using a game on a daily basis, the ad revenue will start to add up quickly. There is also the concept of “freemium” games. These are free to download, but have some form of in-game currency or items that players can purchase for real money.

If you’ve ever played some of the games made by Zynga, like Treasure Isle, you’ll understand the concept. Players can use them for free and can usually progress without paying anything. There are two ways for you to earn certain in-game items like weapons, characters, etc.: you can do it the hard way by completing various in-game tasks, inviting friends to play and sending them the item they need, etc. Or they can just buy whatever they want, which makes it much faster to progress through the game.

GA service companies are also cashing in on this new growth in mobile gaming. In fact, a popular graphic design company that specializes in video game level design reported that its revenue increased 42% last year, primarily due to the acquisition of clients involved in Android game development.