Ad network VideoEgg has unveiled AdFrames for mobile, a performance-based ad offering that enables advertisers to distribute invitation-based, expandable video or rich media ads to iPhone users. One of the first advertisers to use AdFrames is Nikon, which is using it to promote its CoolPix and D90 cameras.
VideoEgg notes that the growth of 3G networks and the emergence of open mobile platforms like Apples iPhone and Googles Android are driving the creation of third party applications, with almost 9,000 developed for the 10 million iPhones predicted to be sold this year. It adds that consumers are now enjoying a new breed of web-based social, gaming and media experiences using their mobile devices, representing a major shift in activity and creating opportunities for brand marketers.
VideoEgg says that its expansion of AdFrames into mobile devices allows advertisers to extend rich brand experiences across the mobile channel, bringing even more reach to the companys network of more than 80 million consumers.
The way in which consumers use their mobile phones is changing drastically, says VideoEgg European Managing Director, Paps Shaikh. These devices have evolved into complete media environments, opening an entirely new channel for marketers. Our AdFrames for mobile offering builds off of VideoEggs strength in creating powerful, cost effective methods for brands and enables advertisers to connect with consumers across any digital environment. 
VideoEgg is offering mobile distribution across both applications and web pages on the iPhone, and says that over time it plans to extend its offering to other mobile platforms and devices. The mobile distribution channel is offered as part of VideoEggs ad platform and will be included as a standard option on all large campaigns. The pricing model is based on cost per engagement (CPE).
VideoEggs cost-per-engagement ad model will likely prove very attractive to advertisers, says Informa Telecoms & Media Analyst, Steve Mullins. Not only does it offer an inexpensive way to test the mobile-ads water, it also provides much-needed accountability in a difficult economic climate.
You can see demos of VideoEgg in action here.