Adweek is reporting that Apple is focusing the iAd sales department almost exclusively on iTunes Radio, rather than developing its in-app ad portfolio, which is how the service originally started. According to the report, Eddy Cue told the advertising unit that iTunes Radio advertisements are a top priority, presumably as Apple is preparing to expand the music service into more countries next year.
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AdWeek quotes an ‘apple insider’:
“The message that came across was basically if you’re not working on iTunes Radio, you’re irrelevant,” an Apple insider said.
The report reaffirms suspicions that Apple is quickly expanding its ad sales managers for iTunes Radio, in the wake of news that Apple hired a terrestrial radio ad sales executive last week. The report indicates that although sales managers are focused on iTunes radio campaigns, Apple is quietly working on changing the dynamics of its in-app display advertising as well.
The report says that Apple is developing a real-time bidding exchange to automate the management and distribution of campaigns for advertisers. This system is similar to a stock exchange, where ads are bought and sold dynamically over time. This is a big departure from how iAds was initially envisioned as a platform for distinct, big-budget movie-like campaigns. Adweek speculates that the real-time system would make iAds more accessible both in terms of adversity diversity and price.