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iTunes Radio to Debut in September with Multiple High-Profile Advertising Partners

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Apple's iTunes Radio will debut in September with a number of brand partners including McDonald's, Nissan, Pepsi, and Procter & Gamble, reports AdAge. Under the terms of the deal, Apple's launch partners will get exclusive ads within their industries through the end of 2013.
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.
First introduced at WWDC, iTunes Radio is Apple's upcoming Internet radio service that functions similarly to Pandora, offering up personalized radio stations based on artist or song selections.

iTunes Radio is free, but is supported with both interstitial audio and video ads along with standard mobile ads. iTunes Match subscribers, however, can enjoy an ad-free experience.
Advertisements on iTunes Radio will come in three forms: interstitial audio and video ads and "slate" ads; interactive display ads that will take over whatever screen the consumer is using. That includes iPhones, iPads, all desktops and laptops loaded with iTunes (including Windows PCs) and Apple TV, the Apple device that brings Internet connectivity and apps to TVs.
iTunes Radio listeners will hear one audio ad every 15 minutes and will see a video ad each hour. While initial ads will run on all devices, advertisers will later be able to target ads to specific devices. Launch partners will also have the opportunity to create sponsored stations that have fewer ads than standard radio stations.

According to reports, Apple's iAd staff is responsible for securing the advertising deals that support the streaming music service. iTunes Radio represents a new opportunity for iAd, which was originally envisioned as a way to help developers earn money on the iOS platform. iAd has been historically unsuccessful in terms of attracting both developer interest and revenue, but with the new audio ads, Apple will be able to keep 90% of the money it earns instead of shelling out a large portion to developers.

iTunes Radio is bundled into iOS 7 and will likely debut during Apple's September 10 iPhone event.

Article Link: iTunes Radio to Debut in September with Multiple High-Profile Advertising Partners
 

JayCee842

macrumors 6502a
Jan 21, 2013
589
0
That isn't bad at all.:) But I wonder why I'm still seeing ads when I'm an iTunes Match subscriber? :confused:
 
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dugbug

macrumors 65816
Aug 23, 2008
1,402
748
Somewhere in Florida
The service works very well.

I do have one issue with it thus far: skipping tracks you already own (i'm talking icloud/itunes bought, not ripped and added) count towards your skip limit.
 
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Lord Hamsa

macrumors 6502a
Jul 16, 2013
654
523
interactive display ads that will take over whatever screen the consumer is using. That includes ... all desktops and laptops loaded with iTunes (including Windows PCs)

Um, yuck.

Well, I was probably planning on picking up iTunes Match anyway...
 
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AngerDanger

macrumors 603
Dec 9, 2008
5,009
24,482
And to think I was annoyed with the out-of-place guitar riff transitions before the random voice says "iTunes Radio".
 
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Quercus Alba

macrumors member
Jun 19, 2013
76
0
and "slate" ads; interactive display ads that will take over whatever screen the consumer is using

That sounds fantastically horrible and completely wrong. Are we sure this is correct?

I'm an iTunes Match subscriber so I'll never see or hear these ads, but wow.
 
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GSPice

macrumors 68000
Nov 24, 2008
1,632
89
Interesting. Will probably get match because of this, especially if it gets rid of ads
 
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dugbug

macrumors 65816
Aug 23, 2008
1,402
748
Somewhere in Florida
Pandora like...

Ads on Apple's radio, I see no reason why a developer should get a cut. Unless it meant audio ads in general

iAds is a service for ad-driven apps. Apple pays a royalty to the app developer for ad impressions the app shows.

In this case (apple radio), we have an apple app showing iads, so its all internal to them.

I would expect this to change in the future: I can see iAd offering audio ads to audio-centric ap developers
 
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palmharbor

macrumors 6502
Jul 31, 2007
408
0
iTunes Radio Section

I guess the thought today is : Why listen to internet radio for FREE on itunes today when you can pay a fee to listen soon? Is that the thinking of everyone?
Sorry, this is nuts...
 
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crackbookpro

macrumors 65816
Feb 25, 2009
1,096
0
Om nom nom nom
They need a different business model.

Something on the lines of - if you like the song on iRadio, you can purchase it... if iRadio is a monthly subscription, then for the $10 or whatever you pay monthly, you should still be able to buy 10 songs(or less) for iTunes.

I see iRadio having a fierce competition against Spotify unless an entire new business model is coming... I could see iRadio & iTunes working together nicely with a business avenue to complement both along with targeted ads nonetheless to drive both.
 
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John.B

macrumors 601
Jan 15, 2008
4,149
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Holocene Epoch
iTunes Radio listeners will hear one audio ad every 15 minutes and will see a video ad each hour. While initial ads will run on all devices, advertisers will later be able to target ads to specific devices. Launch partners will also have the opportunity to create sponsored stations that have fewer ads than standard radio stations.

I hope it's the same ad, over and over again, like on Pandora. ;)
 
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chabig

macrumors 604
Sep 6, 2002
7,517
4,825
I guess the thought today is : Why listen to internet radio for FREE on itunes today when you can pay a fee to listen soon? Is that the thinking of everyone?
Sorry, this is nuts...

Those are canned radio stations. You have no choice of songs. iTunes radio is customized for you alone. You can choose music and skip songs you don't want to hear. It's a big difference.
 
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Alumeenium

macrumors regular
May 15, 2013
200
67
no thanks!

I get it that Streaming Content is the future

but Choice is paramount vs Pushed Media spoon fed out
 
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