Major Advertisers Set To Spend Millions With iTunes Radio Next Month
Without any history of success or real understanding of how it will work, it appears several major advertisers are ready to roll out with iTunes Radio when the new platform launches this fall. AdAge reports that McDonald's, Nissan, Pepsi, and P&G have already committed millions of dollars worth of advertising. The ads will be interstitial audio and video ads and "slate" ads; interactive display ads that will take over whatever screen the consumer is using. That includes iPhones, iPads, all desktops and laptops loaded with iTunes (including Windows PCs), and Apple TV.
AdAge also reports that along with the publicity of a new product launch leveraging the powerful Apple brand, partners get exclusivity within their respective industries through the end of 2013. In 2014, ads on iTunes Radio become widely available, provided an advertiser can fork up the minimum buy-in of around $1 million.
There will also be an ad-free option for consumers. The big play for Apple will be a "Buy Now" button which will be placed next to every song, and of course consumers will purchase directly from Apple's iTunes. iTunes Radio is set to launch in September. Most techies believe the new Apple product will be a major competitor to Pandora, which has been trying to siphon advertising money away from radio by setting up local offices around the country and offering advertisers targeted ads. Pandora reports quarterly earnings tomorrow. Was the timing of the leak of this advertiser news to AdAge a coincidence?
Read the AdAge story HERE
(8/21/2013 8:35:20 PM) |
Even as it would be foolish to even make an attempt at contradicting Larry's comments (below), there are still opportunities for radio's ownership to learn and apply more and exploit such opportunities.
Seems the only folks really taking radio semi-seriously are those who can still cash substantial checks - on the backs of the workforce and at the expense of audiences and advertisers.
Critics are never popular. Some get conveniently labeled as other than helpful. But, we're not all of us - wrong.
The irony is in that our first responsibility is to get our own houses in order - not to flail about trying to respond (out of desperation) to other media.
|- Ronald T. Robinson|
(8/21/2013 8:58:40 AM) |
These types of stories make my stomach queasy and my heart ache. Man, it’s not the content of the story that gets me, it’s the slip, slip, slipping away of my first love: Radio. I feel like the guy who at some point realizes that the woman he loves is no longer that into him and that she’s gradually moving more and more of her clothes from the closet. I don’t care about the timing of the article. The reality is that radio’s clothes are gradually starting to be missing from the closet and the industry seems to be on a crash dummy course where things seem to be going okay despite the fact that the trip ends at an unmovable wall. I think that radio was in the best position to leverage digital technology and relationship marketing when these things first emerged. But a lack of vision, blind loyalty to the status quo and a stubborn refusal to explore ways to become truly accountable partners with the nation’s biggest marketers left radio with a CD business model in a digital world. I’ve attended enough management meetings and RAB conferences to know we’ve been largely treading water and poo pooing digital realities (like the crazies who don’t believe climate change is real) for the past few decades. Last night, I actually heard a radio announcer say, “In 6 minutes we’re back with Anita Baker…” As I changed stations in search of music, I thought to myself, “Six minutes?? Seriously?? Who the hell wants to hang around for six minutes of commercials and promos?” Which of radio’s constituents wins in that scenario? The advertisers? The listeners? Ad agencies know this is not a sustainable business model and are searching for more accountable solutions. They have to or their clients will take their business elsewhere. More than ever, trackable results are the primary currency of success in the marketing business. In my view, early adoption of the iTunes Radio platform signals an understanding on the part of advertisers that they're in desperate need of more viable digital solutions; that they trust the Apple brand and they’re willing to roll the dice on the creation of this new platform.
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