iAds will show test ads until Apple approves the app. Once the application is approved, iAds will be put into live mode.
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As far as I know, iAds are still displayed only for users who live in the USA. Even then, the fill level for iAds has been shown to be around 10-11% (not very high).
This means that for every 100 ad requests received, only 10 or 11 will actually show iAd. the other 90-89% will not show anything.
We hope that the level of content will begin to improve as Apple's advertising resources increase.
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