Apple joins the Search Business

Apples new system called iAds offer ways to build complex interactive ads into apps for the iPhone, iPod Touch and iPad. Apple is likely to add a location component to its mobile ads so, for example, coupons from local restaurants could show up on a person’s phone. Google Adwords is probably the best money making, advertising platform ever produced so its no surprise that Apple wants to build its’ own mobile advertising revenue generating machine for the iphone and ipad.

Apple gave a preview of a new version of the basic software for its mobile devices, including the iPhone. The software has a built-in advertising system, meant to be used by the developers who have created the more than 185,000 applications in Apple’s App Store.

Apple said it would sell and serve up the ads and give developers 60 percent of the revenue from ads that run in their programs. Mr. Jobs sharply contrasted the market for ads on mobile phones with the way its ally-turned-rival, Google, had profited on PCs: by running ads alongside search results. “Search is not where it’s at” on phones, he said. “People are not searching on a mobile device like they are on the desktop.”

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