If you are an Android application developer, you might had received an email from Google Play which informs on the labeling of ad-supported app.
With the labels of in-app purchase tag and ad-supported tag, the users will have a better understanding on what the application has to offer as if someone is concerned for his/her own privacy. The developer has to declare whether that their application comes with in-app purchase and advertisement. This program is likely to initiate in early next year.
Official Email from Google Play:-
Hello Google Play Developer,
At Google I/O, we launched “ad-supported” labels for apps in the Designed for Families program. Today, we’re announcing the expansion of this program to all apps on Google Play. Early next year, users will start to see the “Ads” label on apps that contain advertising, both inside and outside Designed for Families.
By January 11, 2016, you must sign in to the Play Developer Console and declare whether your apps contain ads (such as ads delivered through third party ad networks, display ads, native ads, and/or banner ads). After this date, the ads declaration will be required to make any updates to your apps. Please note that misrepresenting ad presence violates Google Play Developer Program Policies and may lead to suspension. You can visit our help center to learn more.
While developers are responsible for accurately declaring ad presence in their apps, Google may verify this at any time and display the “Ads” label if appropriate.
If you feel your app has been incorrectly flagged for containing ads, please contact our policy support team.
The Google Play Team