While the announcement of the iPhone 4 may have received most of the buzz yesterday, new details about Apple’s iAd platform were revealed that just might shake mobile advertising to its core.

If you haven’t heard about iAd, which Jobs stated will offer advertisers “the emotion of TV advertising with the interactivity of the web”, it provides for ads to be displayed within downloaded applications. Apple is reporting that it has $60 Million in commitments to its new mobile advertising platform that launches on July 1.

Good news for app developers: they get to pocket 60% of the ad revenue from their apps.

But how will iAd change mobile advertising for advertisers?

A New Ad Model for New Times
Is this the end of dominance for search advertising? As the public increasingly uses applications to acquire information, their reliance on search decreases. Advertisers will have to duplicate media buys.

New Pricing and Production Processes
For the time being, Ad Age has reported that Apple will charge for both impressions and click-throughs upfront — a departure from traditional media buys.  Also, advertisers and agencies will have to grow accustomed to iAd's JS library in order to bundle assets for ad delivery. Given Apple's recent perspective, it should come as no surprise that HTML 5 is preferred. 

Targeting Customers
Ads can be targeted based on the demographics of who’s likely to download to the app. With more than 200,000 apps in App Store’s categories, targeting niches would appear to be relatively easy.

Will It Be a Success?
Whether people will engage with advertising as they’re watching videos or playing games on their iPhones remains to be seen. But it’s hard to argue against Apple’s track record. iPhone sales are expected to grow again this year, and numerous other advertisers have already found success with in-game advertising, which some have estimated will hit $1 Billion annually by 2014.

How do you think iAd will affect mobile advertising going forward?