iTunes Radio To Launch In September, Audio And Video Ads Every 15 Minutes From Big Brands
iTunes 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.
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
"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.
- Full Text: Apple's iTunes Radio Press Release
- We've Looked At The iTunes Radio Contract, And Apple Is One Sly Negotiator
- Michael Robertson On iTunes Radio: "Good For Pandora, Bad For AM/FM"
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.