Interactive ‘Living Ads’ for the Toyota’s Prius V have started to appear in Yahoo’s new Livestand iPad app.

Yahoo says the Living Ad format is more engaging for consumers since it uses photography and sequenced videos to grab people’s attention.

In a Living Ad test prior to launch, 44% of those who saw the test adverts had a higher opinion of the brand after seeing it, versus 36% for the static ad.

As an exclusive sponsor of the Livestand app, Toyota will retain 40% of the ad space during the launch period.

Dreamworks has also signed up as one of the initial sponsors, with campaigns priced in the $200,000 to $500,000 range for packages that run throughout Q1 2012.

The Livestand iPad app, which launched earlier this month for US users only, is billed as a ‘living magazine’ that gives users access to a range of news, sports and niche interest titles.

Users can personalise the content, browse videos and photo galleries, and share articles through social networks.

Toyota said it wants to take advantage of the novelty of Livestand and Living Ads to make an impact with its car launch.

Interactive ads are a growing trend, yesterday we covered Sony’s tie up with SocialVibe to bring ‘value-exchange engagement’ ads to the Latin American market.

As with Yahoo, SocialVibe produced some impressive statistics around the success of interactive adverts, with a study showing that brand perception increases by an average of 38% after engagement.