Apple have announced iAd animated advertising as part of version 4 of the operating system for iPhone and iPad touch mobile devices (presumably these will also work on iPads). Developers of Apps (applications) will receive 60 percent of the advertising revenue, making free to the customer applications possible. Perhaps more interesting is that the advertisements will make use of HTML 5 features for animation.
Flash has typically used for animation in advertisements. HTML 5 couldn't be used for general web ads as the advertiser could not be user that HTML 5 was installed on the viewer's computer, but they can be sure of this with the iPhone. It will be interesting to see if Google do something similar for the Android. While Google has had mobile ads for some time, they have not been very successful. Apple may be able to come up with a format for mobile ads which is popular with the advertisers and tolerated by the viewers.