iTunes Radio will start offering programming next month. Advertising partners for the streaming music service include McDonald's, Nissan, Pepsi and Procter & Gamble, according to news reports.
Partnerships will be offered for single millions of dollars to tens of millions of dollars, according to a report from Ad Age. They include a year-long ad campaign.
In January, iTunes Radio ads will be more widely available, with a minimum purchase of about $1 million, Ad Age said. In 2014, advertisers can target devices for their ads. Also, iTunes Radio ads will increase with the size of the screen used: iPhone ads are the least and Apple (News - Alert) TV ads will be the most expensive.
The ads on iTunes Radio will be either interstitial audio, video ads, slate ads or interactive display ads. Users will see an audio ad once every 15 minutes and one video ad every hour.
Some partners will be affiliated with branded stations which will have a short ad specifying a brand sponsorship. There is a no-ad option, too, with iTunes Match, a cloud-based music storage feature.
In addition, ads will be presented on iPhones, iPads, computers with iTunes, and through the Apple TV set-top box, according to The Guardian.
iTunes Radio’s main rival appears to be Pandora (News - Alert), Ad Age said. Pandora saw 71.2 million active listeners in July. That was over 7 percent of the total radio listening in the United States during July. Also, Pandora mobile ad revenue is predicted to jump 43 percent, year vs. year, from $376 million in 2013 to $539 million in 2014, eMarketer (News - Alert) reported.
Beats Music is also soon to be launched as a digital music service. Beats Music will have thousands of playlists, news reports said. Playlists are being created by known musicians and freelance music writers.
Edited by Alisen Downey