Clear Channel-owned seller will not replace Pandora"s in-house sales.
Hoping to bring its advertising revenue up to speed with its user growth rate, personalized Internet radio service Pandora Media has signed an audio ad sales deal with Katz Media, an Interent radio ad sales specialist owned by Clear Channel.
With the deal, "a significant number" of audio ads on Pandora.com will be sold by Katz 360 Sales, a division of Katz Media. However, Pandora's existing digital sales team will remain intact to sell ads in several metro areas.
Oakland, CA-based Pandora, which reports having 30 million registered users and 11 million monthly unique visitors, began offering audio ads late last year to augment a display ad business. The effort proved worthwhile, resulting in about $18 million in sales, 95 percent of Pandora's total revenue.
Pandora is now a part of the Katz Online Network, an aggregate of many different streaming audio Web sites. Advertisers place orders to run on Pandora and/or the Katz Online Network , said Doug Sterne, director of audio sales for Pandora. The Katz Media Group has 19 regional offices and represents more than 3,000 radio stations and 400 TV stations. The Katz Online Network delivers more than 80 million listener sessions monthly and aggregates more than 8 million streaming audio listeners weekly, according to the company.
Katz, using more than 200 account managers nationwide, will represent Pandora in areas not currently covered by its in-house ad sales team, primarily New York, Los Angeles, San Francisco and Boston. It will also broaden the "array" of Pandora advertisers, Sterne said. Doing business with Pandora will boost the size of the Katz Online Network and give its sales teams the ability to customize, by market, the content selections they can offer their national radio advertisers.
"We've been fortunate to have a lot of people knocking on our door to purchase ads and it's a relief to be able to have people knowledgeable about Pandora to respond," Sterne said. "It's been very difficult to scale up our business." He added that ad dollars "have been migrating from traditional media to online media at an accelerated pace" and it was important to Pandora to join with ad sales people with experience in both online and broadcast.
In May, Pandora.com announced the launch of a program allowing sponsors to fund free streaming of new albums by major recording artists. Water filter maker Brita sponsored the first of those campaigns.
Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, Oct 3 to take advantage of Early Bird Rates!
IBM Social Analytics: The Science Behind Social Media Marketing
80% of internet users say they prefer to connect with brands via Facebook. 65% of social media users say they use it to learn more about brands, products and services. Learn about how to find more about customers' attitudes, preferences and buying habits from what they say on social media channels.
An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising
If you're considering implementing a marketing attribution model to measure and optimize your programs, this paper is a great introduction. It also includes real-life tips from marketers who have successfully implemented attribution in their organizations.
September 17, 2014
September 23, 2014
September 30, 2014
1:00pm ET/10:00am PT