10:47 PT: Steve Jobs back on stage: Seventh tentpole is iAd, mobile advertising built into iPhone OS 4.
10:47 PT: A lot of the apps on the device are free, or 99 cents, or $1.99. And we like that. Users like that. But these developers have to find a way to make some money. And we'd like to help them. What some developers are starting to do is put advertising in their apps, and we think most of this mobile advertising really sucks. And we thought we could make some contributions. This is what this is all about. Helping our developers make some money in advertising so they can keep their free apps free.
10:48 PT: On the desktop, search is where it's at. That's where the money is. But on a mobile device, search hasn't happened. Search isn't where the money's at. What's happening is, they're spending all their time in apps. When people want to find a place to go to dinner, they're not searching, they're opening up the Yelp app. And this is where the opportunity to deliver advertising is. Not as part of search, but as part of apps.
10:47AM DanF: "It's all about helping our developers make money through advertising so they can keep teir free apps free." Unspoken: big benefits to Apple here, too.
10:49 PT: The average iPhone user spends a little over 30 minutes every day using apps. Now, if we said we wanted to put an ad up every 3 minutes, that would be 10 ads per device per day. We're going to soon have 100 million devices. That's a billion ad opportunities per day in the iPhone and iPod touch community. This is a pretty serious opportunity. And it's an incredible demographic. But we want to do more than that. We want to change the quality of the advertising as well...
I'm not quite sure i know what to think about it.