Monday’s announcement by Apple of the iPhone 4 included their announcement of a mobile advertising network – iAd.

Google, of course, had recently closed it’s $750 million acquisition of AdMob –the current leader in iPhone and Android advertising.

It also appears that the Apple iAd developer terms specifically exclude the use of any other advertising network.  My suspicion is the FCC and FTC might have some issues with this (and certainly the EU will) since Apple clearly commands a huge portion of the smart phone market.

Advertisers who committed to iAd include Nissan, Disney, Geico, Citi, Unilever, AT&T, Chanel, GE, Liberty Mutual, State Farm, Campbells, Sears, JC Penny, Target, Best Buy, Direct TV and TBS.

iAd and AdMob both work by providing app vendors the ability to embed advertising into their applications.

It isn’t clear whether or not Apple will advise individuals before they download an app whether or not it contains advertising — remember, with the announcement of the iPhone 4 AT&T discontinued their unlimited data plan — and I’m sure someone is going to have to pay for the data usage that all this advertising consumes.

To me this is yet another reason to avoid having an iPhone — the last thing I want is to have advertising forced down my throat when I’m paying the bills.

Originally posted 2010-06-11 02:00:02.