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 Toronto On the heels of a fantastic event in New York City, ClickZ Live is taking the fun and learning to Toronto, June 23-25. With over 15 years' experience delivering industry-leading events, ClickZ Live offers an action-packed, educationally-focused agenda covering all aspects of digital marketing. 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

UPCOMING TRAINING

Featured White Papers

Gartner Magic Quadrant for Digital Commerce

Gartner Magic Quadrant for Digital Commerce
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.

Paid Search in the Mobile Era

Paid Search in the Mobile Era
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.

Jobs

    • SEO Specialist
      SEO Specialist (NJM Insurance Group) - West TrentonNew Jersey Manufacturers Insurance Company is an industry leader among its peers and the largest...
    • Paid Search / Search Engine Marketing (SEM, PPC) Specialist
      Paid Search / Search Engine Marketing (SEM, PPC) Specialist (HeBS Digital) - New York  JOB TITLE:        ...