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Apple iAd brings ads, cash money to third-party iPhone apps

Chris Ziegler

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If you were wondering exactly what Apple had in mind with its acquisition of Quattro Wireless a few months back, the picture gets a little clearer today with the announcement of the iAd mobile ad platform alongside iPhone OS 4.0 today with the company saying that iPhone devs have a billion "ad opportunities" per day. The idea is to keep users in the apps to see interactive, "emotional" ad content as often as once every three minutes -- not to "yank" them out, as Steve puts it -- while developers are rewarded with a 60 percent cut of the revenue. Ads are hosted and served by Apple, and while there'll be some sort of approval process, Steve's describing it as a "light touch," so it probably isn't the same process traditional apps go through. This makes things considerably more interesting for the mobile advertising business as a whole, since Google's been trying to seal the deal on an acquisition of industry leader AdMob for a while now in the face of some pretty intense FTC scrutiny. Certainly seems like this would grease the wheel a little bit, doesn't it?

Gallery: Apple's iAd system | 26 Photos

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