Apple will be launching, a new advertising medium embedded in apps, in the next version of the iPhone operating system.

Steve Jobs claims that this experience will have the interactivity of banner advertising and the entertainment value of TV advertising. Is he right?

Well on the surface he’s on to something. The adverts look pretty discrete to begin with but when interacting with them they really come to life. He admits his example is just a mock-up but his Toy Story 3 advert on an entertainment news advert really hits the spot. It has video clips, audio clips, iPhone wallpaper, even a game which he proudly says runs in HTML 5, a cheeky dig at the Adobe Flash mob.

And the best part is that you dont have to leave your app or lose your place when you exit. You close the ad and return to exactly the point you left.

The catch? Apple host and sell the space and will take a hefty 40% of the revenues. Apple claim that this will encourage developers to use this platform rather than some of the maverick advertising currently seen in apps and give developers a revenue stream. But is this really going to make a difference for the solo developers out there? I think theyll continue to point users at a browser where they may well prove to be better experiences outside of Apples platform. And since the new OS promises that more than one app can be run at the same time this should mean there isnt the issue of losing your original app.

It certainly is going to be attractive to the bigger apps/companies out there, I guess well have to wait and see how users behave.

Its another example of how Apple are streets ahead in the app world. Every time I fight the BlackBerry App World on my old Pearl I seriously consider the upgrade, but my pockets literally arent big enough! ­čÖé I’m going to wait for the iTouch upgrade instead and keep the BB for work.

By Barnaby Ellis, Head of Digital at London marketing agency, gyro