Apple's iTunes Radio attracts ads from major brands like McDonald's, Nissan & Pepsi
Apple's forthcoming iTunes Radio service, set to debut with the launch of iOS 7, has already attracted some premium brands for advertisers, including Proctor & Gamble, Pepsi, Nissan and McDonald's, according to a new report.
Details on the launch advertising lineup for iTunes Radio were revealed on Tuesday by AdAge, which named four of the "high-profile brand partners" Apple has ready to go. The report also indicated that "possibly one or two more brands" will be on board before the service is rolled out to the general public.
Some of the advertising deals are said to reach as high as tens of millions of dollars, with a minimum buy-in of $1 million. And Apple has been securing long-term contracts, extending up to 12 months, reporter John McDermott said.
Apple has incentivized partners to get in at launch by giving them exclusivity within their respective industries through the end of 2013. iTunes Radio ads will open up to the likes of Coca-Cola, a Pepsi competitor, or Toyota, a rival of Nissan, come January 2014.
iTunes Radio was announced by Apple in June at the company's annual Worldwide Developers Conference. A direct competitor to the current streaming Internet radio leader Pandora, the service offers users the ability to listen to customized stations for free with the occasional advertisement.
In addition to being built into the Music app in iOS 7, iTunes Radio will also be a part of iTunes for both Mac and PC, as well as the Apple TV set-top box.
Customers who subscribe to Apple's $24.99-per-year iTunes Match service can listen to content on iTunes Radio without an advertising interruptions. And if a user hears a streaming song that they like, Apple offers quick access to purchase that track on iTunes ? even on the iOS lock screen.
Currently available as part of the iOS 7 beta for developers to test, iTunes Radio has featured placeholder advertisements. Those ads are delivered through Apple's iAd service, and some of them are even presented in video form.
Users will be presented with an audio ad every 15 minutes, and a video ad once per hour. Skipping six songs also automatically triggers an ad, in the current iOS 7 beta.
Details on the launch advertising lineup for iTunes Radio were revealed on Tuesday by AdAge, which named four of the "high-profile brand partners" Apple has ready to go. The report also indicated that "possibly one or two more brands" will be on board before the service is rolled out to the general public.
Some of the advertising deals are said to reach as high as tens of millions of dollars, with a minimum buy-in of $1 million. And Apple has been securing long-term contracts, extending up to 12 months, reporter John McDermott said.
Apple has incentivized partners to get in at launch by giving them exclusivity within their respective industries through the end of 2013. iTunes Radio ads will open up to the likes of Coca-Cola, a Pepsi competitor, or Toyota, a rival of Nissan, come January 2014.
iTunes Radio was announced by Apple in June at the company's annual Worldwide Developers Conference. A direct competitor to the current streaming Internet radio leader Pandora, the service offers users the ability to listen to customized stations for free with the occasional advertisement.
In addition to being built into the Music app in iOS 7, iTunes Radio will also be a part of iTunes for both Mac and PC, as well as the Apple TV set-top box.
Customers who subscribe to Apple's $24.99-per-year iTunes Match service can listen to content on iTunes Radio without an advertising interruptions. And if a user hears a streaming song that they like, Apple offers quick access to purchase that track on iTunes ? even on the iOS lock screen.
Currently available as part of the iOS 7 beta for developers to test, iTunes Radio has featured placeholder advertisements. Those ads are delivered through Apple's iAd service, and some of them are even presented in video form.
Users will be presented with an audio ad every 15 minutes, and a video ad once per hour. Skipping six songs also automatically triggers an ad, in the current iOS 7 beta.
Comments
Good. Maybe AAPL will get to Google's P/E ratio soon....
/s
As each day passes and more companies announce something new for Apple's iDevices, it appears Apple will be announcing a lot of mass behind iOS7 which should build to a high momentum quickly for iOS7 adoption and sales of existing and newly announced Apple products.
By kicking this off in early September, can you even imagine the force it will have as it builds through to the end of December??!! This week we have only heard the faint rumblings of the Apple run-away fully loaded freight train!!!
I'm not interested in this streaming service, only with true "Internet radio," which I listen to a lot.
There is some evidence it will be both in that Apple has reportedly asked some Internet Radio stations to provide cover art for the new service, but it isn't yet clear whether they will allow these stations equal footing with their own streaming service described above.
Then there is the question of even if it allows other stations, will it allow commercial free ones? As an avid listener of commercial free Internet radio I am very skeptical that this service will be anything much more than "iTunes streaming with ads." Almost none of the good internet radio stations have commercials at the moment and are instead listener supported.
Quote:
Originally Posted by Gazoobee
Then there is the question of even if it allows other stations, will it allow commercial free ones? As an avid listener of commercial free Internet radio I am very skeptical that this service will be anything much more than "iTunes streaming with ads." Almost none of the good internet radio stations have commercials at the moment and are instead listener supported.
Did you read the article? Para 7?
Naaa it's pretty good. I been listening to iTunes Radio for few months. The ads are pretty so far. It's not too often. I think the ads bring a well invited break in between songs.
Like Eddie Kendricks says, "Keep on Tr(a)ckin" baby. Seems everyone is borrowing revenue ideas from each other.
Quote:
Originally Posted by Gatorguy
Like Eddie Kendricks says, "Keep on Tr(a)ckin" baby. Seems everyone is borrowing revenue ideas from each other.
Are you suggesting that, in allowing ads, Apple is 'borrowing' a revenue idea from Google? Seriously?
Nope, that Apple sees merit now in using ad revenue and user tracking to deliver a "free" feature. I don't think you'd ever claim you saw the day coming when Google's feature would be a paid subscription but Apple's competing one would be "free" and ad-supported.
there you go, another web service with no web access. internet radio that needs iTunes to work on a desktop, it is just nonsense. This makes as much sense as their mass market Ad Network that has no web presence and is hardware locked.
Check the ToS. At one point it was reported that you still had to agree to collection of user data including location even if you paid for iRadio via iTunes Match. No idea if that is (still) the case. To be clear I don't see anything inherently wrong with that. No one should expect to get services with significant value for next to nothing or even free. Somehow companies expect to profit from it.
Quote:
Originally Posted by AppleCrumble
This is one feature I am really looking forward too when it reaches the UK. Apart from being a 'radio' it will be a cool way to fully preview music from iTunes before buying. No more buyer's remorse.
Do you Brits still have to buy a license to listen to the radio???
Quote:
Originally Posted by nikilok
Naaa it's pretty good. I been listening to iTunes Radio for few months. The ads are pretty so far. It's not too often. I think the ads bring a well invited break in between songs.
Actually a few ads is better then listening to public supported radio groveling for donations during their fund drives.
Can't wait.
Obviously, iTunes Radio could be very successful making tens of million per quarter yet not raise Apple's share price by even a couple of bucks whereas if Pandora makes a million dollars the share price goes ballistic.
Quote:
Originally Posted by anantksundaram
Did you read the article? Para 7?
Quote:
Originally Posted by nikilok
Naaa it's pretty good. I been listening to iTunes Radio for few months. The ads are pretty so far. It's not too often. I think the ads bring a well invited break in between songs.
Nothing personal, but did you two read my comment? These answers are irrelevant to what my complaints/concerns actually are/were.
I'm saying that I'm hoping as rumoured that it actually includes "real" Internet Radio, and the ability to listen to the stations I already listen to, but with links to the iTunes store. Many articles have implied or even outright stated that this is so. That what they are offering is an actual (Internet) "radio" station, and Apple has been rumoured to have been in talks with actual Internet radio stations.
I'm dubious on that as this seems more like an ad-supported stream based on genius recommendations and nothing more, although the rumour that they requested cover art from the Internet radio stations goes against this assumption. If I can't listen to the stations I already listen to it's a colossal waste of time IMO and yet another app to put in the "Apple crap" folder on the last page.
I don't want anyone to break the NDA to let me in on whether this thing really is Internet radio, but I must admit I'm getting frustrated waiting to find out.
Quote:
Originally Posted by Gazoobee
I'm not interested in this streaming service, only with true "Internet radio," which I listen to a lot.
There is some evidence it will be both in that Apple has reportedly asked some Internet Radio stations to provide cover art for the new service, but it isn't yet clear whether they will allow these stations equal footing with their own streaming service described above.
Then there is the question of even if it allows other stations, will it allow commercial free ones? As an avid listener of commercial free Internet radio I am very skeptical that this service will be anything much more than "iTunes streaming with ads." Almost none of the good internet radio stations have commercials at the moment and are instead listener supported.
I guess I am confused. The service you are describing has been available for years... At least that is what I listen to on my iPhone.
I'm a match subscriber, but still interesting.
I wouldn't care (in general) if ads are subliminal, I just don't want to see banners
I think you're right that this is probably only Apple's version of Pandora.
Likely just music/audio based on Genius recommendations and not Internet radio stations.