podaddies1.png Podaddies has launched an ad network that displays ads in both online and downloaded videos, and is notable because it supports videos on iTunes, the fast growing media service.

The San Francisco company (our coverage) has also raised $1 million from angel investors.

The company tracks and sells ads on downloaded iTunes podcasts and videos, and works well with Quicktime, Apple’s video player.

Podaddies has forged an unofficial, but close relationship with Apple, according to NewTeeVee, and is working on a version that can track and run ads in videos that play on disconnected machines. The company’ service currently requires an internet connection to work with downloaded videos.

There are many well-funded startups that offer online video ad networks, including ScanScout, Brightroll, Videoegg, and others. A few funded competitors also offer ads that play in downloaded videos: One is Kiptronics (our coverage), another is YuMe (our coverage). While Podaddies seems to be favoring Apple, YuMe announced a deal last month with Microsoft. That deal will let it deliver ads in downloaded Microsoft videos.

Podaddies also works with Flash — but not Windows Media, the company says, because that video player is not often used by podcasters.

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