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Apple aims to overhaul mobile advertising with iAd

Apple makes adverts into apps of their own
Apple makes adverts into apps of their own

Apple has, as expected, unveiled its own version of mobile advertising with its 'seventh tentpole' of the iPhone 4 firmware - iAd.

The new service will basically be small windows inside applications which can be expanded within the app itself, without the need to exit to a website or separate program.

These 'sub-apps' will take advantage of existing APIs, meaning developers will be able to embed videos, maps or live feeds into the advertisements, as well as links to commerce stores to directly buy goods.

'Sucky' ads

The new service is designed to help developers make money, with Jobs saying that current ads in apps 'suck'.

He pointed out that "Search is not happening on phones; people are using apps. And this is where the opportunity is to deliver advertising is."

Apple believes that with people spending half an hour a day in applications, there's an opportunity to serve one billion adverts per day.

Coded in HTML5, Apple will be hosting the iAds themselves, taking a 40% cut of all revenue while developers take 60%.