The iPhone isn't just a mobile phone, it's truly a next-gen computing platform. Although all mobile devices run an OS and are essentially mini-computers, the iPhone is arguably the first device to get the user experience right. Along with iPhone's rich feature set there's now also the App Store, a place where developers can offer their iPhone apps for download in both free and paid versions. But the truth of the matter is, free apps will be more widely distributed than the paid ones. Because of this, developers thought they had to choose between a free app with a large install base or a paid app that was installed less but earned money. Well, now there's a third choice, too: Medialets has launched a mobile ad platform for iPhone apps. With Medialets, developers can build free iPhone apps and still earn money through advertisements built into the apps themselves.

Medialets is a disruptive ad platform and network for the iPhone. Developers using this service will be able to embed creative ads directly into their native applications. The model is very much like that of DoubleClick - the apps can be monetized through CPM, CPC, and CPA advertising, which allows the apps to remain free to the user while also letting iPhone developers make money from their applications.

In addition to the ad platform itself, Medialets will also be providing the developers with analytics, tracking, and even a toolkit to help them build the advertising portion of the application.

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Once the app is written and the Medialets framework has been embedded, the developers can then add their app to the iPhone App Store as usual and set the price to zero. As Apple distributes the apps to the users, Medialets will sell ads and share the revenue with the developers.

Medialets is being careful to make sure that their advertisements don't mar the otherwise unique and innovative user experience of the iPhone. While developers don't necessarily need to have their apps approved to work with Meidalets, the company will help them design ads that remain unique and beautiful, too. Medialets provides a supportive developer community and will offer demos and code examples for the developers to use.

The apps running Medialets will help brands and agencies find ways to offer audiences what are called "branded experiences." For example, an ad agency promoting professional racing might sponsor a branded racing game for their company or an app that lets fans track race stats and connect with other racing fans. Also, because location awareness is built-in to the 3G iPhone, applications that help people connect with nearby friends or find nearby businesses are also possible.

The official launch date for Medialets is July 11th - the same day as the iPhone 2.0 and the App Store.