Advertisers Excited As iTunes Radio Launches Today
September 18, 2013
The long-awaited iTunes Radio, Apple's answer to Pandora, is released today as part of the company's release of its new iOS 7 operating system. Originally announced in June, iTunes Radio is a free streaming music service, using text and audio ads, though iTunes Match subscribers will access an ad-free version. Apple will also use iTunes Radio to direct users to buy songs in the iTunes Music Store via a "buy" button. The service also allows for skipping tracks and will feature "first listen" premieres from artists, as well as streaming broadcasts of live events, such as the upcoming iTunes Festival in London.
Advertisers are excited to be a part of the debuting service. As reported last month, McDonald's, Nissan, Pepsi and Procter & Gamble have all signed on as brand partners for iTunes Radio. According to a new report from Ad Age, these big brands have already spent over $10 million to become partners in the launch of Apple's new service.
Frank Cooper, PepsiCo CMO for Global Consumer Engagement told AdAge, "We looked at the the devices Apple has and the number of subscribers that they have overall on iTunes. Just in terms of infrastructure, we think they have the chance to be the biggest."
Each brand will be the exclusive advertiser on iTunes Radio within its respective advertising category through the end of 2013. Pepsi is the only advertiser with its own branded radio station at the launch.
Tony Gianni, SVP, Media Strategy and Marketing Effectiveness at Macy's, said he will continue buying ads on Pandora despite being a launch partner with iTunes Radio. "Audio has for us always done very, very well. It's something we use to support most if not all of our campaigns," he told AdAge.