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"The results so far are right on target," said Ben Winkler,
chief digital officer at OMD, whose clients include iTunes Radio
launch advertisers Pepsi and Nissan. Mr. Winkler declined
to delve into specific results, but said iTunes Radio advertisers
were reaching more people on their mobile devices than originally
anticipated.
"We thought it would be a good chunk from mobile. When we first
put [campaigns] together, I don't think we expected two-thirds [of
users] from mobile. By the time this thing rolled out, two-thirds
felt right," he said.
Apple was also able to satisfy demand for its handful of
category-exclusive launch advertisers, which included McDonald's
and Procter &
Gamble. "We were able to reach the impression loads that we had
targeted to reach, and that's with protections like not overloading
any individual with too many ads...which would suggest that their
growth was good," said Nissan Director and Chief Marketing Manager
Phil O'Connor.
That growth trajectory will need to continue in 2014. Next year
the honeymoon period for iTunes Radio will have ended. Many launch
advertisers' deals only ran through the end of 2013. The service
will retain Pepsi, which signed a
two-year deal, but others like Nissan await their companies' next
fiscal-year planning decisions before weighing whether to re-up.
New advertisers are likely but not guaranteed.
Marketers have "significant interest" in iTunes Radio "because
anything Apple does, they tend to do in a big way," said DigitasLBi Senior VP-Media Adam
Shlachter. Apple has indicated it plans to more aggressively court
Madison Avenue and emphasize iTunes Radio in particular. Since
iTunes Radio started rolling out, conversations with media buyers
concerning non-iTunes Radio iAds have been down, said one agency
executive. And earlier this month Michael Pallad, VP-sales at AM/FM
radio giant Cumulus Media,
joined the company's iAd team to sell iTunes Radio
internationally.
Mr. Pallad will need to sell marketers not only on iTunes Radio
but off the competition. Given how crowded the digital-music
marketplace is, "everyone is waiting to see what their impact is
against the competition, whether or not Apple can establish or take
share from any other platform. Based on that you will see people
migrate budget," Mr. Shlachter said.