Apple's iAd Focus Turns to iTunes Radio With New Real-Time Bidding Exchange

iadApple's iAd team will be focusing heavily on monetizing iTunes Radio through advertising sales in the new year, reports Adweek. Apple's SVP of Internet software and services Eddy Cue reportedly told iAd staff that iTunes Radio ads, rather than app ads, are the new top priority.

Indeed, there is a new focus within the company’s advertising unit, and the mantra came direct from Eddy Cue, Apple's head of software. In a staff meeting before the holidays, Cue indicated that iTunes Radio is the top priority, and app ads are not.

"The message that came across was basically if you’re not working on iTunes Radio, you're irrelevant," an Apple insider said.

To facilitate ad sales, Apple also plans to build a real-time bidding exchange to automate sales, selling individual ad impressions one at a time rather than in bulk. With such a system, which emulates a stock exchange, iAds could ultimately become more affordable and more widely available to various advertisers, and it also allows for very specific targeting.

A source familiar with iAds said Apple has kept its real-time initiative under close wraps and is "not casting a wide net." That may be because the company is figuring out how to gradually transition from earlier aggressive sales efforts that had iAd prices starting at $1 million a pop. "It's a rare advertiser that is going to be willing to pay those rates,” said the source.

iTunes Radio became a new focus for the iAd team ahead of the music service's September launch, with iAd engineers and sales personnel working to secure deals with major advertisers to support iTunes Radio.

Prior to iTunes Radio, which represents a huge shift in focus for iAd, the service was designed to help developers earn money on the iOS platform. As a developer tool, iAd was historically unsuccessful in terms of attracting both developer interest and revenue. iTunes Radio is an important new endeavor as it represents a huge money-earning opportunity for the company. Apple is able to keep 90 percent of total revenue from its audio ads, sharing a mere 10 percent with music companies.

Ads on iTunes Radio are enhanced with Apple's targeting tools that deliver both audio and video ads to specific users on iOS devices, PCs and Macs, and the Apple TV. iTunes Radio initially launched with a number of major ad partners already on board, including McDonald's, Nissan, Pepsi, and Procter & Gamble.

Top Rated Comments

blackpond Avatar
115 months ago
When will we see AdBlock for iTunes Radio?


(Just kidding)

iTunes Match... $25/yr
Score: 6 Votes (Like | Disagree)
Rogifan Avatar
115 months ago
How about focus on making iTunes Radio better?
Score: 2 Votes (Like | Disagree)
JackieInCo Avatar
115 months ago
iTunes Match... $25/yr

Well worth not hearing ads every few songs. They still limit skips but this is why you create multiple stations.
Score: 1 Votes (Like | Disagree)
Constable Odo Avatar
115 months ago
How about focus on making iTunes Radio better?

What Apple needs is a Station editor in iTunes Radio like the Playlist editor in iTunes. You really have to do some heavy planning when creating a station to get what you want and if it doesn't work properly you have to start from scratch. A user should be able to go back and edit all the criteria of that station to avoid getting lots of repeat songs or add further artists or genre you'd like to hear. That Hits/Variety/Discovery slider isn't bad but it's hard to know which one to pick because it's rather vague in definition. It really shouldn't be very hard to create a Station editor to fine-tune a station for the music you want to hear. C'mon Apple, get on the ball. :D
Score: 1 Votes (Like | Disagree)
TheKrs1 Avatar
115 months ago
I'd love to see some resources work harder on breaking it out of the USA. I'm patiently waiting in Canada.

How about focus on making iTunes Radio better?
In a way they are? The more ad revenue they can garner, the more money they can put into the service.
Score: 1 Votes (Like | Disagree)
PowerBook-G5 Avatar
115 months ago
When will we see AdBlock for iTunes Radio?


(Just kidding)
Score: 1 Votes (Like | Disagree)

Popular Stories

iphone 14 pro max vs 13 max 2

Camera Comparison: iPhone 14 Pro Max vs. iPhone 13 Pro Max

Thursday September 29, 2022 7:44 am PDT by
The iPhone 14 Pro and Pro Max introduce some major improvements in camera technology, adding a 48-megapixel lens and low-light improvements across all lenses with the new Photonic Engine. We've spent the last week working on an in-depth comparison that pits the new iPhone 14 Pro Max against the prior-generation iPhone 13 Pro Max to see just how much better the iPhone 14 Pro Max can be. Subscrib ...
tony blevins car

Apple Procurement VP Departs Company After Vulgar TikTok Comment

Thursday September 29, 2022 12:38 pm PDT by
Tony Blevins, Apple's vice president of procurement, is set to depart the company after he made a crude comment about his profession in a recent TikTok video, reports Bloomberg. Blevins was in a video by TikTok creator Daniel Mac, who was doing a series on the jobs of people he spotted with expensive cars. After seeing Blevins in an expensive Mercedes-Benz SLR McLaren, Mac asked Blevins what ...
Dark Sky App Featured

Dark Sky Removed From iOS App Store Ahead of Upcoming Shutdown

Wednesday September 28, 2022 4:27 pm PDT by
The Dark Sky weather app that's owned by Apple is no longer available for download in the U.S. App Store, suggesting that it has been removed ahead of schedule. Apple acquired Dark Sky back in March 2020 and has since incorporated elements of the app into the Weather app available on the iPhone (and soon, the iPad). Dark Sky remained available for purchase as a standalone weather app...
adaptive transparency airpods pro

iOS 16.1 Beta Brings Adaptive Transparency to Original AirPods Pro

Thursday September 29, 2022 1:08 pm PDT by
The third beta of iOS 16.1 that was released earlier this week expands the Adaptive Transparency feature introduced with the second-generation AirPods Pro to the original AirPods Pro. As noted on Reddit, first-generation AirPods Pro owners who also have the AirPods beta software will now see an "Adaptive Transparency" toggle in the AirPods section of the Settings app. The 5A304A beta...
tim cook malala

Tim Cook: Not Too Long From Now, You'll Wonder How You Led Your Life Without AR

Thursday September 29, 2022 7:26 am PDT by
Speaking at Università Degli Studi di Napoli Federico II in Naples, Italy, Apple CEO Tim Cook said that not too long from today, people will wonder how they led a life without augmented reality, stressing the "profound" impact it will have on the not so distant future. At the university, Cook was awarded an Honorary Degree in Innovation and International Management and also sat down for a...
iPhone 15 to Switch From Lightning to USB C in 2023 feature sans arrow

Kuo: iPhone 14 Pro Max Popularity Could Lead to More Differentiation Between iPhone 15 Pro and iPhone 15 Pro Max

Wednesday September 28, 2022 10:22 am PDT by
Apple has seen high demand for the 6.7-inch iPhone 14 Pro Max, which could lead the company to further differentiate the next-generation iPhone 15 Pro and Pro Max, according to Apple analyst Ming-Chi Kuo. Apple could add exclusive features to the iPhone 15 Pro Max in an effort to encourage more people to purchase the larger and more expensive device. Kuo last week said that Apple asked...
iOS 16 Wallpaper Spectrum Feature

Five Wallpaper Apps to Check Out for iOS 16's New Lock Screen Depth Effect

Thursday September 29, 2022 9:08 am PDT by
One of the biggest new features in iOS 16 is a completely redesigned iPhone Lock Screen. The new Lock Screen is entirely customizable, letting you change the colors and fonts, add widgets and new wallpapers, and more to make your iPhone uniquely yours. Of course, even before iOS 16, you could customize your Lock Screen with a wallpaper of your choice. iOS 16 takes the Lock Screen wallpaper...
apple watch ultra deuglify 1

Apple Watch Ultra User Mods Titanium Casing to 'Deuglify' Design

Tuesday September 27, 2022 8:05 am PDT by
An Apple Watch Ultra user has modified their new device's casing to add a brushed finish and remove the orange color of the Action Button in an effort to make it more visually appealing. The Apple Watch Ultra offers the first complete redesign of the Apple Watch since the product line's announcement in 2014, and while the design has been met with praise from many users, some have criticized...
mx mechanical keyboard logitech

Logitech Launches New 'Designed for Mac' Mice and Keyboards

Wednesday September 28, 2022 12:01 am PDT by
Logitech today announced the launch of several new mice and keyboards that have been developed for use with Apple's Macs, including Logitech's first mechanical keyboard that has been optimized for the Mac. The MX Mechanical Mini for Mac Keyboard has a keyboard layout designed for Macs, with tools to customize shortcuts with Logi Options+. The keyboard uses Tactile Quiet low-profile switches...
iphone 14 iphone 14 plus in hand feature

iPhone 14 Is Secretly Hiding a Beloved Mac Feature

Friday September 30, 2022 3:24 am PDT by
The iPhone 14 and iPhone 14 Pro models bring over a longstanding Mac feature, but the setting to enable it is off by default. The feature, which is actually a new accessibility option, allows the iPhone to play a startup chime like the Mac. When enabled, the sound comes alongside a new shutdown chime. The Mac has featured a startup chime since 1987's Macintosh II, and the iconic "bong"...