Apps, Mobile & SMS

iTunes Radio To Launch In September, Audio And Video Ads Every 15 Minutes From Big Brands

Itunes_matchiTunes Radio will launch next month with a small group of major brand partners that includes McDonald's, Nissan, Pepsi and Procter & Gamble, "people familiar with the negotiations" tell Ad Age. Exclusive deals are going for millions of dollars. iTunes Match also gets and boost, offering ad-free accounts; and iAd will handle the iTunes Radio inventory.

The September launch of iTunes Radio, with speculation turning towards Apple's expected iPhone intro on September 10th, is now confirmed via ad industry sources.

Brand partners for 2013 will be limited to those mentioned above and possibly a few more. They will have some sort of "exclusivity within their respective industries," however that's defined, with deals ranging from
image from"high single-digit millions of dollars to tens of millions of dollars."

Audio & Video Ads Every 15 Minutes 

Audio ads are expected to be served every 15 minutes and video every hour. Some stations will be based on brand-curated playlists and are likely to feature fewer ads limited to that sponsoring brand.

In 2014 advertisers will be able to get in on the action for just a million bucks and will be able to target specific devices.

As noted previously by Apple, ad-free iTunes Radio streaming will be available for users of Apple's cloud product iTunes Match which costs $24.99 a year.

AdAge reports that Apple's iAd division will handle ad sales which should give them a big boost as well.

Once again music could be leading the way for Apple's next wave of growth.


Hypebot Senior Contributor Clyde Smith (@fluxresearch/@crowdfundingm) also blogs at Flux Research and Crowdfunding For Musicians. To suggest topics for Hypebot, contact: clyde(at)fluxresearch(dot)com.

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