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While its true mobile ads suck, its not like others couldn't have done advertisements that are just as interactive as the ones Steve demoed. I'm feel like a large reason why they haven't become popular is because advertising companies don't have the know how to do this sort of thing.

That said, iAds will be successful just because its Apples advertising platform and very high profile.

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The beauty of iAds is that it plays to Apple's strengths. In particular, they're the one handset manufacturer that has a unified platform large enough to support an advertising platform and an OS capable of rich interactive ads. Google could have built iAd years ago, but it isn't in their DNA and the fragmentary nature of Android might make it difficult to deploy.

Perhaps iAds will work because of Apple's well known approval process. It's one thing to create interactive ads, it another to keep the quality high enough in general that people bother to click them.

If I were Apple, I'd let users vote ads up or down. Not only would this improve the ads and UX, the data would be a goldmine!

They can probably track how long you "interact" with the ad. That's probably much better data than providing up/down votes.

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