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Audio iAds will be sold for Apple's 'iRadio' - report

post #1 of 25
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Apple's iAd network will serve both visual and audio advertisements as part of the company's forthcoming "iRadio" initiative, according to a new report.

iAd


Details on the advertising support expected to be a part of Apple's rumored radio service were revealed on Wednesday by AdAge. It said the service is expected to feature "highly targeted ads" that may be "pricey," but also appealing, for those looking to advertise to end users.

"The audio ads will be sold via iAd, Apple's mobile ad network, according to a former Apple executive with knowledge of the situation," John McDermott reported. "In addition to audio ads, the streaming music service will also contain the mobile ads iAd currently sells."

It's believed that of the advertisements Apple sells, 10 percent will go to the music rights holders. That's much higher than the 4 percent that Pandora allegedly pays, but also lower than the 70 percent that Apple gives application developers with existing app-embedded iAds.

To date, Apple's iAd network has been limited to banner advertisements embedded in iOS applications. Advertisers can create interactive features that act like mini-applications when activated by a user.

Wednesday's report corroborates some of what was said in a separate rumor earlier this week, which claimed that Apple's iAd focus is moving away from applications and toward the new "iRadio." The streaming service, which is expected to compete with established players like Pandora and Spotify, could be announced as soon as next week's Worldwide Developers Conference.

Apple is said to have inked a deal with Warner Music Group for the necessary rights for its Internet radio service. That's fueled speculation that Apple might have all the pieces in place in time for an announcement at Monday's WWDC keynote.

Existing music streaming services Pandora and Spotify also rely on a combination of audio and graphical advertisements. Both of those companies will intersperse audio advertisements in between the playback of songs, while users who pay a monthly subscription fee can avoid such ads.
post #2 of 25

a visual radio ! cool ....

post #3 of 25

Ads are the one thing that makes using Mobile Safari objectionable to me. On my Mac, I block them. On iOS they don't allow extensions so you have to endure them. I'm pretty sure I won't be using iRadio as I don't currently use Pandora either. I only listen to Radio Paradise and they have zero ads because they are listener supported, plus I like their music.

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post #4 of 25
Another article hinted at geolocation so if you're walking down a street and there was a sale on at a nearby store that you'd hear that ad. If its free and the music selection is good (meaning the "suggested" music is consistent with my tastes) then I'll listen. A couple ads is better than ads + useless DJ commentary + news/weather.

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post #5 of 25
Does this mean the rumored iTV will have video iAds? Please Apple, avoid Ads at all costs.
post #6 of 25
Originally Posted by Phone-UI-Guy View Post
Does this mean the rumored iTV will have video iAds? Please Apple, avoid Ads at all costs.


On the contrary. Video iAds will completely and utterly destroy traditional television. They'll make people WANT to see ads.

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There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

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There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

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post #7 of 25
I am so ready for iRadio. Especially if integrated into AppleTV. I use Pandora now via AirPlay through our Yamaha speaker bar above the TV background music while entertaining. Just don't have the patience anymore to deal with iTunes playlists. Would love to have Apple curate that for me. Plus it would be nice to have cool display on TV screen based on album art, etc.
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post #8 of 25
If Apple offers the option of a reasonably priced ad-free subscription to iRadio in addition to the free ad-enabled version then I might subscribe. I don't want ads interrupting the flow of music I'm listening to, like it does on YouTube.
post #9 of 25
Quote:
Originally Posted by EricTheHalfBee View Post

Another article hinted at geolocation so if you're walking down a street and there was a sale on at a nearby store that you'd hear that ad. If its free and the music selection is good (meaning the "suggested" music is consistent with my tastes) then I'll listen. A couple ads is better than ads + useless DJ commentary + news/weather.

That sounds like a great ideas if they can pull it off. They already have Passbook that is essentially doing one part of the setup already, and doing it well.

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post #10 of 25
Wasn't it Steve Jobs that proclaimed that customers don't want ads, which is why when they re-announced their email service for their customers they stated it wouldn't have ads since customers don't like them. So why would Apple decide to start doing audio and visual ads when customers don't like any ads?
post #11 of 25
Quote:
Originally Posted by Mike Q Abili View Post

Wasn't it Steve Jobs that proclaimed that customers don't want ads, which is why when they re-announced their email service for their customers they stated it wouldn't have ads since customers don't like them. So why would Apple decide to start doing audio and visual ads when customers don't like any ads?

1) What exactly did he say and what was the exact context? This is important as iAd predated iCloud mail, not to mention decades of TV ads, so they clearly aren't against the concept of advertising. Was it specifically in regards to email? If so, I agree as having my email parsed so I can get targeted ads feels more invasive than other similar techniques at targeted ads.

2) Let's remember that Steve Jobs is no longer with us so anything he's stated really can't be used as proof of Apple lying.

3) Customers don't tend to like ads. Some ads are very enjoyable and they clearly do work but I'd say most people would give up all the enjoyable ads for no ads, assuming that it also didn't increase prices not the content.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #12 of 25

Ultimately, they may be able to craft audio or television-style ads on-the-fly that are highly targeted. Imagine synthetic 3D actors, appropriate audio and environments that are instantly conjured and served up for an audience of one. A future iAd delivery system might even determine it would be pointless to serve you up an ad unless you were alert and receptive to ads.

 

"Hey, Marvin! I noticed you're a little drowsy... stop in to the Starbucks that's only 150 feet ahead and on the right for $1.00 off your favorite iced coffee!"

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post #13 of 25
Quote:
Originally Posted by mstone View Post

Ads are the one thing that makes using Mobile Safari objectionable to me. On my Mac, I block them. On iOS they don't allow extensions so you have to endure them. I'm pretty sure I won't be using iRadio as I don't currently use Pandora either. I only listen to Radio Paradise and they have zero ads because they are listener supported, plus I like their music.

 

 

Well if you pay the monthly subscription on Pandora, you don't get ads. Not sure how you expect companies to give you stuff for free and still stay in business. 

post #14 of 25
Quote:
Originally Posted by EricTheHalfBee View Post

Another article hinted at geolocation so if you're walking down a street and there was a sale on at a nearby store that you'd hear that ad. If its free and the music selection is good (meaning the "suggested" music is consistent with my tastes) then I'll listen. A couple ads is better than ads + useless DJ commentary + news/weather.

 

 

Agreed. I listen to Pandora. The ads do not bother me. 

post #15 of 25
Quote:
Originally Posted by SpamSandwich View Post

"Hey, Marvin! I noticed you're a little drowsy... stop in to the Starbucks that's only 150 feet ahead and on the right for $1.00 off your favorite iced coffee!"

"Hey, Marvin! I noticed you've been in the Starbuck's bathroom for about 15 minutes now. Perhaps you'd like to know about PureLax laxative. Only $9.99 and available at Walgreens down the road. Would you like directions?"

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #16 of 25
Quote:
Originally Posted by Mike Q Abili View Post

Wasn't it Steve Jobs that proclaimed that customers don't want ads, which is why when they re-announced their email service for their customers they stated it wouldn't have ads since customers don't like them. So why would Apple decide to start doing audio and visual ads when customers don't like any ads?

 

 

Well perhaps it is because providing customers free email costs a company like Apple very little, and to provide customers free radio streaming would cost Apple a lot? Moreover, email is an essential part of many people's lives. Listening to a streaming music service is not. In truth, Jobs was against streaming music all together. Times change. 

post #17 of 25
Quote:
Originally Posted by SolipsismX View Post


"Hey, Marvin! I noticed you've been in the Starbuck's bathroom for about 15 minutes now. Perhaps you'd like to know about PureLax laxative. Only $9.99 and available at Walgreens down the road. Would you like directions?"

 

"Damn you, iAd!.... Yes, I'd like directions..."

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GOA

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post #18 of 25
Quote:
Originally Posted by TBell View Post

 

Well if you pay the monthly subscription on Pandora, you don't get ads. Not sure how you expect companies to give you stuff for free and still stay in business. 

I didn't say for free. I said listener supported as in send whatever you can afford or whatever the value the service is worth to you. I send them regular payments and the model seems to work for RP as they've been in business since the year 2000 and have continued to expand their services and web offerings completely ad free. They enjoy sort of a cult following. During the RIAA licensing crisis a few years ago we all pitched in even a little more. But if you don't want to or can't pay the service is still free.


Edited by mstone - 6/5/13 at 1:30pm

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post #19 of 25
Quote:
Originally Posted by EricTheHalfBee View Post

Another article hinted at geolocation so if you're walking down a street and there was a sale on at a nearby store that you'd hear that ad. If its free and the music selection is good (meaning the "suggested" music is consistent with my tastes) then I'll listen. A couple ads is better than ads + useless DJ commentary + news/weather.

So data-mining and targeted ads in return for a free service aren't so unpalatable or evil after-all?
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post #20 of 25
Well Apple ads will be great unlike those annoying google ads. Apple will do ads right, and will track us apple users the right way. Sure iads will be no different from google ads, but its apple so it will be done elegantly with more apple unicorn magic.

I expect every apple user who has cried tears of horror over google's evil ways on this site to call out apple for their disrespect and invasion of the users privacy if this horrible vicious plan to enslave us all like google has done rumor comes to fruition.

I myself have no problem with target advertising, as a service is provided to me with the understanding that I give more information about myself in return for not only a "free" service but ads that might interest me. It also benefits say a kid living in the congo who has no intention of ever buying anything from a google ad because I the american who has been granted the chance of being born in a developed economy has already paid google to provide him with a service like google search.

I love services based on advertising, as its the purest form of socialism that actually works.

This means a poor kid from brazil might be able to use iradio for free (if apple builds a website for it) because iads would've paid for it.

I can say things like this because I never had or will ever have an issue with advertising.

The rest of you mindless drones that love apple (I love apple but I call them out when they make a mistake) to a fault must protest or be dam to the land of hypocrisy and doucheness.
post #21 of 25
Quote:
Originally Posted by EricTheHalfBee View Post

Another article hinted at geolocation so if you're walking down a street and there was a sale on at a nearby store that you'd hear that ad. If its free and the music selection is good (meaning the "suggested" music is consistent with my tastes) then I'll listen. A couple ads is better than ads + useless DJ commentary + news/weather.

Quote:
Originally Posted by SolipsismX View Post

That sounds like a great ideas if they can pull it off. They already have Passbook that is essentially doing one part of the setup already, and doing it well.

You have both given arguments as to why Google's targeted ads, which may not even be as invasive as geolocation based ads, are evil. These are OK because they're done by Apple, right? Hypocrisy.
post #22 of 25
Quote:
Originally Posted by wakefinance View Post


You have both given arguments as to why Google's targeted ads, which may not even be as invasive as geolocation based ads, are evil. These are OK because they're done by Apple, right? Hypocrisy.

Except this is false. Google captures a lot of data for contextual ads including email content, search history and YouTube habits.

This is hugely more invasive than geofencing ads around stores...especially if the ad provider does not get to see when or if you are ever in proximity to a store unless you click the ad. In one case ads are targeted at me because they have access to tracking data based on my private information correlated to my google account.

The other can be implemented in an anonymous fashion needing no correlated tracking data or knowledge other than the fact my device is within 500m of a store. Nor does the advertiser need to get any demographic or purchasing behavior information for geofencing targeting to work. Just anonymous eyeball proximity like any billboard ad.

Go troll elsewhere.
post #23 of 25
Quote:
Originally Posted by nht View Post


Except this is false. Google captures a lot of data for contextual ads including email content, search history and YouTube habits.

This is hugely more invasive than geofencing ads around stores...especially if the ad provider does not get to see when or if you are ever in proximity to a store unless you click the ad. In one case ads are targeted at me because they have access to tracking data based on my private information correlated to my google account.

The other can be implemented in an anonymous fashion needing no correlated tracking data or knowledge other than the fact my device is within 500m of a store. Nor does the advertiser need to get any demographic or purchasing behavior information for geofencing targeting to work. Just anonymous eyeball proximity like any billboard ad.

Go troll elsewhere.

 

Except google ads are just as anonymous as you think apple ads might be. Google's entire business model relies on preventing advertisers from knowing your interests. A company wants to show ads for a product or service, but only Google knows the mapping between interests and persons. Therefore the company pays google to show the ads to the appropriate persons. To use your billboard analogy, an advertiser pays Google to install a billboard, but only Google knows where to place it. If google were to sell its users' actual personal data, it would torpedo its own business because no advertiser would pay google more than once.

post #24 of 25
Quote:
Originally Posted by wakefinance View Post


You have both given arguments as to why Google's targeted ads, which may not even be as invasive as geolocation based ads, are evil. These are OK because they're done by Apple, right? Hypocrisy.

Yes, they are OK because they increase Apple's value and decrease Google's.

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post #25 of 25
The latest on how iAds and iRadio will work according to Ad Age. One audio ad every 15 minutes, video once an hour. Ads will appear on all devices than use iTunes.

http://adage.com/article/digital/big-marketers-sign-apple-s-itunes-radio/243734/
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