Apple recently released its iAd platform amid much to-do, and so far the new ad option is showing some advantages over Apple’s direct competitor for the market, Google.

One prime example is the iAd focus on keeping prices for apps low or allowing consumers to use them for free via the use of ads. This allows app developers – including ones who use apps to promote their companies – to make money without users immediately discounting the app because of a price tag.

On the downside, larger app makers do not want to sacrifice revenue to Apple and will likely continue to sell their own mobile ads. Another feature not yet available is the use of location-based ads; Apple does not currently allow developers to show such ads.

The rivalry between Apple and Google continues to develop, with Apple obviously coming in as David to Google’s Goliath. Steve Jobs, Apple’s chief officer, confirmed that Apple had attempted to buy the mobile advertising company AdMob, but that Google had bought it out from under the gadget company.

Does this mean that Google considers the iAd offer to be a serious competitor? It remains to be seen.

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