Wall Street Journal:

Early this month, mobile ad exchange TapSense announced a product it said will allow marketers to place ads in applications created for the Apple Watch by third-party developers. The technology is still being tested, the company said, but it plans to develop new ad formats specific to the wearable device, and to target those ads based on detailed location information.

“We are working in beta with both app developers and brands but have nothing to publicly announce right now,” said TapSense CEO Ash Kumar, in reference to which companies it’s currently working with. “Reception for this has been incredible and we can’t wait to see how location-based services add value to consumers’ in-app experiences.”

From the TapSense press release:

The TapSense SDK leverages new interactive interfaces supported by Apple WatchKit such as watch faces, glances & full-screen experiences while getting rid of banner ads.

And:

Being worn on the wrist, an Apple Watch is more accessible and can leverage the GPS on an iPhone. This makes it an ideal device to deliver contextual and hyper-local offers such as a retail store coupon.

And:

As Apple Watch has full integration with Apple Pay, the hyper-local coupons delivered through the TapSense platform can be redeemed by the consumer right from the convenience of their wrist. As this reduces friction for the consumer, we believe this will have huge impact on brand lift and engagement. Also, marketers would be able to link their marketing spend accurately with offline purchases, which has been a difficult problem to solve until now.

First things first, this whole concept makes me shudder.

That aside, this all seems incredibly speculative to me. If Apple were to allow advertising on the Apple Watch, why would they give up control to an outside agency?