It’s a good news for developers (as well as advertisers). Developers could optimize a new app to enjoy traffic exchange in the Admob network, which so far claims covering more than 1,000 iPhone apps. The mobile ad network company will be launching an iPhone App Exchange later this month.

AdMob currently shows ads across 7.2 million iPhones. Developers will be able to volunteer a portion of the ad inventory on their apps to go towards promoting other apps. In return, their apps will be promoted on other apps in the network. Depending on whether monetization or distribution is more important to them, they will be able to adjust the settings on their AdMob account accordingly.

Since AdMob knows which other apps in the network have been downloaded by each individual, consumers will never be shown ads for apps they already own. AdMob also keeps track of usage after each download.

[via TechCrunch]