When news broke last December that Apple is building a real-time bidding exchange for in-app ad buying, word came that that Apple was shifting focus to selling advertising on iTunes Radio. The Information is reporting today Apple will begin offering “locally targeted advertising” on iTunes Radio later this year.
The article points out that the addition of local ads on iTunes Radio “strikes at the heart of Pandora’s advertising business.” Pandora reported advertising revenues of $521 million in 2013, an increase of 45 percent year-over-year.
Apple is also planning to add more content to its platform through deals with local NPR stations, ESPN and now according to The Information broadcast radio stations.
The news comes in a week when Apple announced it is buying Beats Electronics for $3 billion to compete with subscription services such as Pandora. The company has said Beat’s streaming service will be offered in addition to iTunes Radio.