A showdown in mobile ads is brewing.

At this morning’s iPhone 4.0 developer preview, Apple announced their new mobile ad platform, iAd. Since buying Quattro Wireless earlier this year, a mobile advertising product was expected from Apple. The features of this platform include HTML5 rendering, closer OS integration, and the ability to keep the ads in-application on mobile phones, rather than being sent to a web browser when the ad is clicked.

Some of the early ads demoed onstage were for Nike and Toy Story 3, and integrated interactive features like in-ad games. Steve Jobs, Apple’s CEO, said “We have figured out how to do interactive and video content without ever taking you out of the app.” Apple says the iAd will be able to take advantage of hardware features like geolocation and accelerometers. This may herald the start of mass adoption for hyperlocal advertising. Apple hopes to entice developers with 60% of the advertising revenue.

On the other side of the silicon valley, Google is watching closely. Their own bid to buy mobile advertising company AdMob has been challenged by the FTC, as anticompetitive, and a decision is expected later this week. Google already offers advertising through AdMob, and localized ads through their AdWords program, which extends to webpages, television, radio, and mobile.

Google’s strategy is broad in including all wireless carriers and building on the strength of their own Android mobile operating system, other mobile products, and cross-platform integration through AdWords. Apple’s strategy depends upon the continual success of their iPhone, iPad, and iPod products, and enticing developers to participate by sharing revenue.

We’ll be watching this issue at Speaking of Social Media. To learn more about iAds, see this article from techradar.com, and to learn the latest about the Google/AdMob deal, check out this article from TechCrunch.

Originally posted at Speaking of Social Media.