iAd Commitments For 2010 To Exceed $60M

We’ve already covered the tidbits on iAd Steve Jobs announced during his WWDC keynote this morning, but Apple has just published a press release detailing a bit more about its plans.

The iAds mobile advertising network will launch on July 1st, with over $60 million in 2010 commitments from leading global brands including AT&T, Best Buy, Campbell Soup Company, Chanel, Citi, DirecTV, GEICO, GE, JCPenney, Liberty Mutual Group, Nissan, Sears, State Farm, Target, Turner Broadcasting System, Unilever and The Walt Disney Studios.  At $60M, iAds could represent 48% of mobile advertising spend for the second half of 2010.

iAd, which is built into iOS 4, allows users to stay within their app while engaging with the ad, even while watching a video, playing a game or using in-ad purchase to download an app or buy iTunes content.

“iAd offers advertisers the emotion of TV with the interactivity of the web, and offers users a new way to explore ads without being hijacked out of their favorite apps,” said Steve Jobs, Apple’s CEO. “iAds will reach millions of iPhone and iPod touch users—a highly desirable demographic for advertisers—and provide developers a new way to earn money so they can continue developing free and low cost applications.”

Developers who join the iAd Network can easily incorporate a variety of advertising formats into their apps.  Apple will sell and serve the ads, and developers will receive an industry-standard 60 percent of the iAd Network revenue, which is paid via iTunes Connect.

iAds require iOS 4, which will be a free software update via iTunes 9.2 or later for iPhone and iPod touch customers.  iOS 4 will work with iPhone 3G, iPhone 3GS, iPhone 4, and second and third generation iPod touch (late 2009 models with 32GB or 64GB).

With its impending launch, iAds will certainly be a game changer whether the industry likes it or not.  Things should start to get interesting after July 1st.