Block Ads in Android apps and android Browsers

For Rooted Phones: AdAway
By far the best ad blocking solution is AdAway, which will block ads from most known sources, both in your browser of choice and in the apps you use. Just download it, start it up, and hit the "Download files and apply ad blocking" button. It'll download a few host files and merge them into your phone's, blocking those apps from ever reaching your device. You may need to reboot after you do this. You can also disable ad blocking at any time, but again, you'll have to reboot whenever you make changes.

For Unrooted Phones:

Unfortunately, if you aren't rooted, you don't have nearly as many choices. You pretty much have to block ads through your browser, and only a few browsers currently support this. Firefox is the easiest method—just download Firefox, and add the Adblock Plus extension, which you can grab from the add-ons page in Firefox's settings.

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