Apple launches iAd with $60 million in commitments for 2010

Apple’s newly announced iAd mobile ad network, set to launch July 1, has already lined up $60 million in commitments for 2010. Advertisers include Nissan, Citibank, Unilever, AT&T, Chanel, GE, Liberty Mutual, State Farm, Geico, Campbell’s Soup, Sears, JCPenney, Best Buy, Target, DirecTV, TBS, Liberty Mutual Group and Walt Disney Studios. Initial advertisers paid at least $10 million, but Apple is not disclosing which brand jumped on the bandwagon first.

The mobile ad network, built into the newly announced iOS 4, a free software update via iTunes 9.2, allows users to engage with an ad and stay within the app even if that includes watching a video or playing a game, or using an in-ad purchase to download an application or buy iTunes content. IOS 4 works with iPhone 3G, iPhone 3GS and iPhone 4, as well as second- and third-generation iPod touch.

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. Developers who join the iAd Network can incorporate a variety of advertising formats into their applications.