Apple to Roll Out App Ad Net

Apple CEO Steve Jobs once famously said mobile advertising “sucks.” Now, he’s out to change that with the introduction of an ad network called iAd.
Apple, which bought mobile ad network Quattro Wireless for $250 million in January, plans to offer iAd to application developers. The ads will differ from many standard mobile banners because tapping on them won’t cause users to leave the applications. Instead, brands can provide various interactive elements in displays that pop up over the application pages.
Apple said the approach “combines the emotion of TV ads with the interactivity of Web ads.”
The ad network was unveiled along with the latest version of the iPhone operating system today at an event held at the firm’s Cupertino, Calif., headquarters.
Apple plans to give application makers 60 percent of the revenue generated from iAds. The company will sell and serve the ads. Apple did not say how it would target placements or whether it would open the platform to other networks.
Jobs demonstrated several iAds, according to reports from the event. One was for NikeID, showing how users could tap to watch a video or customize a shoe. Another for Toy Story invites users to play a game or watch a trailer. A Target placement has an option for customizing a dorm room.