Why Apple's Reported iAd Focus from Apps to Radio Is Brilliant

Ahead of the possibility that iRadio will be introduced at WWDC next week, Bloomberg is reporting that Apple will be changing tactics with its iAd platform.  iAd originally started as a platform for app developers to use to monetize their apps, however, Apple has failed to turn iAd into a real success story.  Despite Apple being a powerhouse in the mobile industry, iAd has not been able to compete with Google’s dominance in the mobile ad space.

Sources have said that Tim Cook is searching for new ways to bring in advertising revenue after iAd failed to make a significant dent in the mobile ad market, and are claiming that Apple will slowly pull back from its role as a network serving up ads on mobile devices, instead refocusing its efforts on the rumored iRadio service.  While this may seem like a huge blow to Apple (and it is in a sense), it also is a great opportunity for them to capitalize on.  I can’t help but think how big a factor iAd can potentially play in the future of Apple, which seems silly to say now, but let me explain.

If the Bloomberg report is correct and Apple is shifting its core focus with iAd towards its iRadio service, it will be the perfect transition phase for the iTV (or next generation Apple TV).  Think about it: Apple completely cuts out the middle man, advertisers work directly with Apple to sell ads across radio and television.  If it works out as planned, Apple will control ads for two of the biggest entertainment mediums.  Plus, TV and radio ad money can be quite lucrative and would be a great addition to Apple’s bottom line.  A successful execution of iAd could even help turn Apple back into Wall Street’s darling company.

According to Bloomberg, iRadio is not likely to launch until later this year, when iOS 7 (and likely the next iPhone) is due for release, though the service may be officially announced at WWDC if licensing deals can be agreed to in time.