The deals range from the high single-digit millions of dollars to tens of millions of dollars and include a 12 month advertising campaign to run within the streaming music service for each of the participating brands.
The launch partners will get exclusivity within their respective industries through the end of 2013, according to the report. However, starting in January 2014, ads will be widely available to any who can pay the minimum buy-in of about $1 million.
Advertisements on iTunes Radio will come in three forms: 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, the Apple device that brings Internet connectivity and apps to TVs.
Users will reportedly be shown on audio ad every fifteen minutes and one video ad every hour. Apple will serve the video ads when users are likely looking at their screen.
Initially ads are being shown across all devices; however, in 2014, advertisers will be able to target specific devices and pricing will increase in relation to the size of the screen. The bigger the screen, the more costly the ad.
More details at the link below...