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Apple To Sell Audio Ads for iRadio Through iAds

by Jacob Kleinman | June 5, 2013June 5, 2013 2:00 pm PST


Apple will sell audio ads for iRadio, its forthcoming music streaming service, via iAd, it’s mobile ad network, Ad Age said Wednesday.

The news comes from an unnamed “Apple executive with knowledge of the situation,” who revealed that the service will target high value advertisements. iRadio will also make use of mobile advertisements that its iAd platform already offers. It’s unclear if these ads will be audio, video or text-based, though we assume as a streaming radio service they it will use audio ads.

Ad Age‘s source also revealed that Apple will share 10 percent of ad revenue with music rights holders, while Pandora pays just four percent. The audio advertisement business model is already well established on other popular music streaming services like Pandora or Spotify, but according to one “music industry executive” with knowledge of the negotiations between Apple and several major record labels, iRadio is said to be a better deal for the music industry.

Apple is expected to unveil iRadio at WWDC 2013 on Monday. In the past few weeks the company has reportedly inked deals with Warner and Universal for iRadio, with only Sony Music Entertainment still holding out for a better offer.

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Jacob Kleinman

Jacob Kleinman has been working as a journalist online and in print since he arrived at Wesleyan University in 2007. After graduating, he took a...