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Apple Hoping to Attract Big Ad Deals for Upcoming iRadio Service

by Brandon Russell | June 3, 2013June 3, 2013 4:00 pm PST


Apple is preparing to revamp its iAd unit in anticipation of its iRadio streaming service. According to Bloomberg, the Cupertino company is eager to attract partners to have units in place once the Pandora-like services goes live, which could be as early as next Monday during Apple’s WWDC.

Apple is allegedly expecting the service to play a big part in advertising as it looks to go up against Google’s $4.11 Billion U.S. mobile-ad market, Bloomberg said. Since the iRadio service will employ a model similar to Pandora’s—supported by ads—the ad network will presumably work in a similar fashion. Apple is holding ongoing negotiations with ad companies such as Omnicom Group Inc’s OMD that would run campaigns directly in the app.

Apple’s iAd platform currently employs ads targeted through what software, music, movies and books a customer buys. But Apple’s model doesn’t allow brands to control which app runs their ad; iRadio will obviously be different because the ads will play in between songs, so companies know exactly where their ads are placed.

Bloomberg’s report further corroborates previous rumors we’ve heard about iRadio: stations can be created based on a particular song or artist, and it’ll be integrated with iTunes. According to sources, tighter integration could potentially allow Apple to attract some big entertainment companies to its iAd network.

Apple has reportedly secured rights to make its service a reality, and is tying up the last remaining loose ends. Many reports suggest we’ll see an official unveil on June 10, so we’re only a week away. When it does launch, you can bet ads will have a heavy presence from the start—that’s how the entire thing will be free after all.


Brandon Russell

Brandon Russell likes to rollerblade while listening to ACDC.