Think Different ... Think iAds?

The ads have started appearing in the United States, though iPad owners will only start seeing them in the fall.

The ads are loaded only when you sync your device with iTunes – which is a good thing, because you're paying the data charges for these ads to display. An ad like the Nissan Leaf ad shown during the introduction could set you back a pretty penny – as much as $1.25 for its estimated five megabyte size. Some estimates are double that.

That iTunes connection is important for the ad network. According to a report on Bloomberg, they are targeting the ads based on your buying habits using the hoard of data it has amassed on its 150 million customers via the iTunes store.

"It's all about helping our developers make some money with advertising. We think most mobile advertising really sucks. We thought we might be able to make some contributions." – Steve Jobs, Apple CEO while introducing the iAd platform.

But others are already crying foul, particularly because it appears the license for developers would exclude other platforms from placing ads using the same technique.

And why should they share? At launch Apple mentioned that it had already signed up $60 million in ads. This is estimated to be half the market for the second half of 2010. They are charging upwards of $1 million for an ad placement in the U.S. market. Reports of $10 million have also surfaced for exclusive access in a product category (Nissan in automotive), so you can bet you will see a lot of Nissan ads.

Apple may be on the verge of creating the perfect category of devices: one with a high-end, premium brand, collecting money both for that product and for the rights to direct ads to that device.

While Apple is claiming that it has built in controls for users to opt out of sending their data, including their location, to third parties, it is well known that few bother changing their settings. There is enough concern that the German government has opened an investigation into this matter. But as Apple itself is the one who will be serving up these ads, a question can be raised as to whether Apple itself will feel bound by this user preference. Apple isn't known for listening carefully to user complaints. This is the company that doesn't think users should be allowed to change their own batteries and told users they were having reception problems with the newest iPhone because they were holding it wrong.

So the question to ask yourself: now that they have started leveraging their brand, is just how much do you trust Apple?

Genius, indeed.