A report by AdAge on Wednesday says Apple’s iAd network will be serving both visual and audio advertisements for Apple’s much-rumored “iRadio” streaming music service. The ads are expected to be “pricey,” but will appeal to advertisers looking to feature “highly targeted ads” to users of the service.
“The audio ads will be sold via iAd, Apple’s mobile ad network, according to a former Apple executive with knowledge of the situation,” John McDermott reported. “In addition to audio ads, the streaming music service will also contain the mobile ads iAd currently sells.”
As far as revenue sharing for the new ads, it is believed that 10 percent will go to the music rights holders. That number is significantly higher than the 4 percent that Pandora is reported to be paying.
Currently, Apple’s iAd network only serves up banner advertisements that are embedded into iOS apps. Apple gives 70 percent of the iAd revenue from applications to the developers of the apps that include iAd content in their apps.
