In-stream advertising network Ad.ly, which launched last year, recently expanded beyond the Twitter ad model to serve ads in MySpace streams. And today, the startup is launching an ad network for third-party developers, allowing clients to serve ads to users within their applications. Called Ad.ly for Apps, the new network allows developers to leverage an API to serve contextually and locally targeted ads to app users based on the streams they are reading and where they are located

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Ad.ly Expands In-Stream Ad Network To Twitter Apps