Pandora Joins Katz Online for Audio Ad Push

  |  August 4, 2009   |  Comments

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.

ClickZ Live San Francisco This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) brings together the industry's leading practitioners and marketing strategists to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, this year's comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!

ABOUT THE AUTHOR

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

Featured White Papers

BigDoor: The Marketers Guide to Customer Loyalty

The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.

Marin Software: The Multiplier Effect of Integrating Search & Social Advertising

The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.

WEBINARS

Jobs

    • Interactive Product Manager
      Interactive Product Manager (Western Governors University) - Salt Lake CityWestern Governors University, one of the 20 largest universities...
    • SEO Senior Analyst
      SEO Senior Analyst (University of Phoenix (Apollo Education Group)) - San FranciscoSEO Senior Analyst   Position Summary...
    • SEM & Biddable Media Manager
      SEM & Biddable Media Manager (Kepler Group LLC) - New YorkAs an Optimization & Innovation Manager at Kepler Group, you will be on the bleeding...