The iAd is HTML-based, not Adobe-based rich media, and Apple intends to offer developers 60 per cent of ad revenue sold for applications.
Apple believes its approach brings more emotion to the experience and will provide a richer content that keeps you inside your application and site.
The mobile platform's application will be followed later this year by new versions of its operating system and the new iPad. AdAge is less than enthused about the new initiative.
But the Nieman Journalism Lab's Joshua Benton portays it more positively as a shift away from search and toward content. He thinks it opens the door to smaller-paper iPhone apps and perhaps even a Yahoo-style partnership between Apple and publications.