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Apple's iAd attracts brands paying up to $10M to join iTunes Radio launch

post #1 of 9
Thread Starter 
Apple's iAd advertising network, originally designed to monetize third party apps, is growing to take on a new role in supporting iTunes Radio with new audio and video spots, and top advertisers are eager to participate.

Radio


According to a report by Ad Age, Apple has lined up major advertisers for its iTunes Radio launch, including McDonald's, Nissan, Pepsi and Procter & Gamble.

These top brands "paid upwards of $10 million to be exclusive iTunes Radio advertisers within their respective industries through the end of 2013," the magazine reported, adding that Apple is also "readying iTunes Radio -- and its new ad products -- for its wide launch to advertisers at the start of 2014."

The new iTunes Radio is expected to be supported by audio iAds every 15 minutes and a video spot every hour when users are likely to be looking at their mobile device. The service will be ad-free to paid users of the $24.99 iTunes Match service.

In addition to iOS mobile devices, iTunes Radio will also work on Apple TV and on PCs and Macs running iTunes. It will provide preprogrammed content streams as well as allowing users to create "stations" around an artist or specific song.

In addition to playing and discovering new music, iTunes Radio will also offer users links to buy the tracks they are listening to. It also appears Apple will be adding access to existing Internet radio streams.

Radio


Apple expanding iAd jobs



In addition to lining up advertisers to support the rollout of iTunes Radio, Apple is also fleshing out iAd's management and creative staffing. Ad Age noted Apple posted five open iAd positions to its own jobs site and listed another 35 on LinkedIn in August.

The report profiled the open iAd positions as including "account coordinators, ad design managers, project managers and engineers who will create new rich media ads for iAd."

It also stated that Apple "appears to be hiring ad execs with creative experience to help brands and agencies create better ads for its expanding iAd advertising network," and reported that Apple's iAd recruiting efforts are being led by Linda Waste, described as a "senior recruiting manager" for the company. Waste was formerly the director of talent at ad agency DDB Chicago.

A report by eMarketer in June projected revenue growth for Apple's iAd to reach $213 million this year, increasing to $376 million in 2014 and $623 million in the following year, a compounded annual growth rate of 71.3 percent.

IDC reverses scathing prediction of doom for iAd



Earlier this year, IDC analyst Karsten Weide noted that apps launching their own advertising (including Facebook, Twitter and Pandora) were beating conventional web-style banner ads in the mobile segment.



That belatedly echoed Apple's own plans for iAd outlined by Steve Jobs at the program's introduction in 2010. It was also a dramatic reversal of Weide's own 2011 prediction of doom for iAd.

"Apple we believe will, over time, fade into the background," in the market for mobile ads Weide told the Wall Street Journal. As evidence of his failed prediction for IDC, Weide cited increasingly cheaper minimum commitments Apple was offering new, smaller advertisers.
post #2 of 9

This is only the beginning. Soon we'll see iAds for Apple's upcoming TV initiative as well.

 

Lot's of potential money to be made by Apple, and Wall Street seems to be ignoring the potential.

post #3 of 9

There is more !

 

There is more stupidity than hydrogen in the universe, and it has a longer shelf life.

Frank Zappa

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There is more stupidity than hydrogen in the universe, and it has a longer shelf life.

Frank Zappa

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post #4 of 9
This article is bull.
Should read "Apple iAd expands iRadio services to same brands already paying for iAd".

No new 'Top Brands' signing up - in fact there are so few advertisers willing to sign up that they get 'Exclusivity' for entire industries.

iAd does have potential, but not how Apple is handling it.
Ad's every 15 minutes or 3 or 4 songs... that's not going to persuade many listeners to purchase Match subscriptions. There are just way too many free & ad-free options out there.

Having realistic options for smaller advertisers is a huge step in the right direction thou.
post #5 of 9
Quote:
Originally Posted by AppleInsider View Post

These top brands "paid upwards of $10 million to be exclusive iTunes Radio advertisers within their respective industries through the end of 2013," the magazine reported, adding that Apple is also "readying iTunes Radio -- and its new ad products -- for its wide launch to advertisers at the start of 2014.".

Meanwhile, Google was able to get KitKat to pay $0.00 for the exclusive naming rights and co-branding of their next OS.

Sort of tells you where the perceived value is.
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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post #6 of 9
Good for Apple and gangs.

I will probably become a paid subscriber but I would not mind to get iAds from Apple and ONLY because of Apple.

....the lack of properly optimized apps is one of the reasons "why the experience on Android tablets is so crappy".

Tim Cook ~ The Wall Street Journal - February 7, 2014

Inside Google! 

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....the lack of properly optimized apps is one of the reasons "why the experience on Android tablets is so crappy".

Tim Cook ~ The Wall Street Journal - February 7, 2014

Inside Google! 

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post #7 of 9
Quote:
Originally Posted by Disturbia View Post

Good for Apple and gangs.

I will probably become a paid subscriber but I would not mind to get iAds from Apple and ONLY because of Apple.

You might be in the minority here if you wouldn't mind having targeted ads delivered based on Apple's tracking data. I don't personally consider advertising efforts a big invasion of my privacy but others here aren't as receptive as you seem to be. Kudos for not being a'feared of ads. 1wink.gif There's bigger concerns in life.
melior diabolus quem scies
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melior diabolus quem scies
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post #8 of 9

Im a match subscriber and forgot to turn on match in iTunes and was listening to music and an audio ad for Metalica came up.  It really was not that annoying.  I think people who don't want to pay the free version of iTunes Radio is going to be a very good thing.

post #9 of 9
hi,
i have a really impressing video clip from my niece which can be the most controversial advertisement for apple company.
how can i give it to apple company?
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