Apple is reported to be working on a new in-stream ad feature for their mobile advertising platform, iAds, that could enable app developers streaming video content to the iPad and iPhones to monetize via ads. The feature is reported to be working pretty similar to the ads inserted on Flash video clips except that this new feature will be compatible on HTML5 and Quicktime – two video platforms that are compatible on the iOS platform.
Apple is also expected to offer limited targeting functionalities that includes the ability to target the user via their mobile data location and their user behavior that is tracked anonymously. The new feature is expected to get many more video publishers onto the iPad platform. As you know, the absence of Flash compatibility and consequently the lack of proper monetization mechanism has meant that iAds has not been able to impress this segment of developers. The new in-stream ads are expected to become available by the first or second quarter of next year on the iPhone and iPad with possible availability on the new Apple TV moving forward.