Apple is adopting a sponsorship-only model in seeking advertisers for Beats 1, according to people briefed on Apple’s plans. Beats 1 will not carry the normal audio and video ads that run on Apple’s Pandora-like iTunes Radio service, which Apple seems to now refer to as simply Radio. Instead, Beats 1 will feature what Apple execs are describing in meetings with potential advertisers as “audio mentions” that will be interspersed throughout the songs and segments that will air on Beats 1.
Source: Apple’s Beats 1 to Feature Sponsors, Not Standard Ads | Digital – Advertising Age