14 DAY TRIAL // Apple plans to support its upcoming iTunes Radio with audio ads, as well as video ads served up by the likes of McDonald’s, Nissan, Procter & Gamble, and Pepsi.
But the deal isn’t cheap, according to AdAge. The aforementioned companies are paying Apple in the millions of dollars to have their ads exclusively served through iTunes Radio, and that’s only until 2014.
In January of next year, even more companies that flood the market with juices, watches, cars and everything in between will be welcomed to the scene.
According to people familiar with the negotiations between Apple and these companies, an advertiser will be able to hop in with its own commercials if it agrees to “the minimum buy-in of around $1 million,” or around €745,000.
Audio ads will be more naggy, with one being served once every 15 minutes, sources say. Not an ideal listening experience, but you can break free with an annual subscription to Apple’s iTunes Match (for $25/€25).
Video ads will also be served, one every hour or so.
For now, advertisers will throw their ads on every Apple product that has iTunes Radio on it, but in 2014 they’ll have “the ability to target specific devices for their ads.”
Perhaps more interesting is the aspect regarding ad-curated playlists.
“Some of the launch partners will also be curating playlists that have fewer ads than typical iTunes Radio stations.”
Not curated with a brand name, these stations are said to start off with “a short ad saying that brand was sponsoring a user's block of free listening.”
It goes without saying that advertisers are taking quite a risk investing millions in a music streaming service that not only hasn’t launched yet, but also comes pretty late to the party (after the likes of Pandora).