Apple is reportedly set to launch its Spotify-rival iTunes Radio in September, with advertising from a McDonald’s, Pepsi, Nissan and Procter & Gamble funding the free music streaming service. According to a report in AdAge, deals with the brands range from “the high single-digit millions of dollars to tens of millions of dollars.” Unlike Spotify […]
Apple is reportedly set to launch its Spotify-rival iTunes Radio in September, with advertising from a McDonald’s, Pepsi, Nissan and Procter & Gamble funding the free music streaming service.
According to a report in AdAge, deals with the brands range from “the high single-digit millions of dollars to tens of millions of dollars.”
Unlike Spotify of Deezer, iTunes Radio will not let users chose individual songs or albums on demand, instead giving users the chance to ‘curate’ their own stations based on their preferred artists, songs or genres.
AdAge cited people familiar with the matter as saying that audio ads will run on the service at a rate of one every 15 minutes or so, with video ads playing roughly every hour.
Ads will run on the service across all Apple platforms, including iPhones, iPads, iTunes desktop software and Apple TV.
The video ads will play at times when listeners are more likely to be looking at the screen, such as when they are skipping a track or after hitting play.
The current partners will have exclusivity within their respective industries until 2013, but slots will be opened up to other advertisers at the start of next year, with a reported minimum buy-in of one million dollars.
The cost of the individual ads will depend on the size of the screen they are displayed on, with Apple TV spaces costing the most and iPhone slots the least.
Users can avoid ads altogether if they purchase iTunes Match, a cloud-based storage feature that allows people to access their iTunes library via any device.
Read the Ad Age report here
