Ads on e-commerce sites

According to Wired Magazine, iTunes will soon feature visual advertisements in the lower right corner of the program. The ads are said to feature video functionality. It is a nice example of an e-commerce site that is getting ready to better monetize the traffic on its site, which is something that many stock analysts have been demanding for years now for the most visited sites on the web.

Just as interesting is what Apple would do with the revenues. According to AdAge, the advertising revenue generated on iTunes would be shared with the labels. In return, those labels would keep the price of a song at 0.99 dollar or euro, instead of opting for a variable price that is set according to the popularity of the song.

The idea of passing on advertisement revenue to the consumer is a trend that has been getting traction recently. Ryanair for example sponsors currently part of the low price of its flight tickets by selling on-board and on-plane advertising space. As a result, it expects to be able to offer free tickets in the future. Interesting to see if that model offers opportunities in other industries.