The launch of Apple's iAd application may help newspaper organisations tap into the rapidly developing iPad market and the mobile advertising business.

The iAd application is one of more than 100 new user features integrated into Apple's OS 4, its latest operating system for both the iPhone and iPad. Marketed as a "new media outlet that offers consumers highly targeted information," the iAd allows application developers to generate advertisements and pocket 60 percent of the revenue. At the Apple OS 4 unveiling event, Steve Jobs highlighted the differences between this new generation of advertising, which features rich media ads that combine the "emotion" of television with the interactivity of the Web, according to Engadget.

More importantly, the iAd application represents a shift away from the Google model of search-based information gathering commonly used on laptops and desktops, towards content-based applications more in line with mobile devices. Polls have shown a drop in time spent on newspaper-owned sites but other studies indicate that a large number of iPad buyers are planning to read books and newspapers with their new gadgets.

So what does Apple's foray into this growing market mean for newspaper industries? According to Joshua Benton at NiemanLab.org, there are three likely outcomes: firstly, smaller newspaper organisations will benefit from lowered costs of basic application development. Secondly, a heightened emphasis on content gives newspaper organisations significant leverage, as building apps that sustains user interest for extended periods of time is a game that they can truly compete in. Thirdly, the iAd may provide an opportunity for newspaper sales teams to partner with smaller advertisers seeking exposure in both online and print locations.

With the Trefis Team estimating one billion ad views per day for all Apple devices, the iAd application could represent an important new revenue stream to help alleviate the news industry's advertising woes.