Top Advertisers Reportedly On Board For iTunes Radio
August 21, 2013
Apple is reportedly set to launch iTunes Radio in September, with a number of high-profile advertisers on board. According to Ad Age, McDonald's, Nissan, Pepsi and Procter & Gamble have all signed on as brand partners for the streaming music services. Sources said at least one or two more major brands could join up as well.
Ad Age also reports that, "The deals range from the high single-digit millions of dollars to tens of millions of dollars and include a 12 month advertising campaign to run within the streaming music service for each of the participating brands. In addition to basking in all the publicity that comes with a heavily-anticipated Apple product launch, the launch partners get exclusivity within their respective industries through the end of 2013. Come January 2014, however, ads on iTunes Radio will become widely available, provided an advertiser agrees to the minimum buy-in of around $1 million, according to sources briefed on the product."
iTunes Radio will include ads in three different ways: interstitial audio and video ads, and interactive display "slate" ads that will fill up the user's screen. Audio ads will be heard every 15 minutes, with one video ad per hour. Ad Age's sources say the video ads will only come up when a user is likely to be looking at their device, such as after pressing play to skipping a song.
While ads will appear on all iTunes-compatible devices at the launch, by 2014, advertisers will have the option to target their ads to specific devices (desktop computers vs. tablets vs. smart phones, for example). Some of the launch partners will also be curating playlists with less ads than other iTunes Radio stations. There will also be an ad-free options to users who sign up for the iTunes Match service.