Apple iTunes Radio is expected to arrive in 2013, and a new report from Ad Age is predicting a September launch. According to “people familiar with the company’s negotiations,” Apple is currently working out advertising details through major brand contract negotiations.
Among some of the top brands believed to be preparing for the iTunes Radio launch are McDonald’s, Nissan, Pepsi, Procter & Gamble, and others.
Advertising won’t be cheap with ad spends ranging from single-digital millions to tens of millions of dollars for a year-long advertising campaign. Each company will be given exclusive rights to their industry of operation for the first year of iTunes Radio.
Apple is also expected to release ad positions through iAds in January 2014. iAd buys will still require a minimum buy-in of $1 million and will be available in three forms: interstitial audio ads, video ads, and “slate” ads. That final option will take over the full screen being used by an iOS user. Ad types will be provided based on a user’s screen size.
According to the report, Apple iRadio ads will be served once 15 minutes with one video ad displayed every hour. Apple is expected to show video ads when a user is most likely to be looking at their devices display.
The report also suggests that buyers will be able to target ads across specific devices, specifically iPhones, iPads, desktops, and laptops. Those devices will likely include Windows PCs, which are loaded with the iTunes platform.
Also suggested is an ad skipping option for Apple users who purchase iTunes Match.
Apple’s main goal of course will be to convince users that they need to click on the iTunes “Buy” button located next to each song. Apple collects 30% of iTunes sales, and its platform is still the largest digital music store in the world.
Are you ready to try out iTunes Radio?
