Apple Building Mobile Exchange, Shifting Focus To Radio

apple-logo-240According to an article in AdWeek, Apple is quietly building an RTB exchange to manage in-app ad buying. This is apparently at the direction of Apple’s Eddy Cue who is now in charge of software, including Maps and Siri.

Apple’s is reportedly concentrating on iTunes Radio advertising. AdWeek says that “In a staff meeting before the holidays, Cue indicated that iTunes Radio is the top priority, and app ads are not.”

Pandora appears to be the model and the iAds team has been redirected to selling radio spots. Pandora reported revenues $181.6 million in the third quarter. On an annualized basis that represents considerable revenue but not necessarily for a company that recorded nearly $38 billion in gross revenue in its most recent quarter.

Apple’s iAd unit has been relatively quiet in the past year or two. Apple bought Quattro Wireless in 2010 for roughly $275 million. For the next couple of years thereafter Apple’s iAd platform was seen as a potentially formidable rival to Google’s AdMob business. It was also seeking to create a new model for the industry, bringing the emotion and engagement of TV advertising to targeted mobile units.

Apple was asking what many considered exorbitant rates for in-app ad placements. Originally there was a minimum $1 million advertising commitment to iAd. But as demand waned over time rates fell dramatically.

A new RTB exchange would automate the entire process of in-app advertising. That’s the direction that much of the industry is going, so it shouldn’t be a problem for major advertisers that are already accustomed to exchanges.

As the AdWeek article points out an RTB exchange could hypothetically become a multi-platform ad selling vehicle for Apple that could deliver ads across smartphones, tablets and Apple TV.

Related Topics: Apple | Apple: Apple TV | Apple: iOS | Channel: Video | Top News


About The Author: is a Contributing Editor at Search Engine Land. He writes a personal blog Screenwerk, about SoLoMo issues and connecting the dots between online and offline. He also posts at Internet2Go, which is focused on the mobile Internet. Follow him @gsterling.

Connect with the author via: Email | Twitter | Google+ | LinkedIn

Marketing Day:

Get the top marketing stories daily!  


Other ways to share:

Read before commenting! We welcome constructive comments and allow any that meet our common sense criteria. This means being respectful and polite to others. It means providing helpful information that contributes to a story or discussion. It means leaving links only that substantially add further to a discussion. Comments using foul language, being disrespectful to others or otherwise violating what we believe are common sense standards of discussion will be deleted. You can read more about our comments policy here.

Comments are closed.

Get Our News, Everywhere!

Daily Email:

Follow Marketing Land on Twitter @marketingland Like Marketing Land on Facebook Follow Marketing Land on Google+ Subscribe to Our Feed! Join our LinkedIn Group Check out our Tumblr! See us on Pinterest


Click to watch SMX conference video

Join us at one of our SMX or MarTech events:

United States


Australia & China

Learn more about: SMX | MarTech

Free Daily Marketing News!

Marketing Day is a once-per-day newsletter update - sign up below and get the news delivered to you!