The £100,000 campaign by Chocolate Communications looks to take Magnatune beyond music titles by targeting nationals and general-interest lifestyle media.
It will introduce the label's unique concept - users can choose the price they pay for downloads by unsigned artists, who receive 50 per cent of profits.
The campaign will progress to promote artists that feature on Magnatune.com.
A trade campaign will raise awareness of licensing opportunities for the film and advertising industries.
The US-based label launched in 2003.