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Brands on Pandora Go Far Beyond LivingSocial

  |  June 20, 2011   |  Comments

A variety of big brands are on Pandora online and in mobile.

pandora-sesamestreet

In the midst of its IPO last week, streaming music service Pandora was criticized for an alleged inability to attract ad dollars from non-web-startup advertisers. However, observation of Pandora both online and via mobile in recent days revealed that the firm is indeed running display, video, and audio ads from a variety of well-established brands including retailers, insurance providers, and travel advertisers.

As has been at the heart of the criticism, Living Social ads do show up in Pandora in the mobile environment. However, when ClickZ News used the Pandora iPhone app on June 16 and 17 while in our New York City office, display, audio, and video ads from a variety of brands were served, including ads from Lowe's, PetSmart, Taco Bell, Verizon, Farmers Insurance, and TNT's new show, "Hawthorne."

Ads from other digital media brands appeared in the mobile app, too, including Google Offers, Bing and eBay.

According to Pandora's prospectus issued by the Securities and Exchange Commission June 10, the firm brought in $119.3 million in the fiscal year ended January 31, 2011, more than double the $50.1 million in ad revenue collected in the same period of 2009. Pandora sells audio, display, and video ads to national and local advertisers.

Online, the company drew some different yet equally diverse advertisers appearing in display and audio units - usually served in conjunction: Best Buy, Weight Watchers, Norton Security, Kissimmee Convention and Visitors Bureau, Spring Hill Suites, Bank of America, Sesame Place, Honda, TNT's "Men of a Certain Age," Google Chrome, and printing service VistaPrint.

Ad revenue makes up 90 percent of Pandora's business, and the remaining 10 percent comes from premium subscription fees. Pandora subscribers experience the service without ad interruptions, which appear on the free service after approximately every fourth song.

Despite the diversity of advertisers on Pandora, investor concerns about the company ability to profit are bound to remain.

Ads on Pandora's iPhone App
AdvertiserAd Format/s
Living Social Video and Display
Lowe's Display and Audio
Google Offers Display
Bing Video and Display
eBay Display
PetSmart Audio
Taco Bell Audio and Display
Verizon Display
TNT/Hawthorne Audio and Display
Farmers Insurance Audio and Display
Ads on Pandora.com
AdvertiserAd Format/s
Best Buy Display and Audio
Kissimmee Convention and Visitors Bureau Display and Audio
Google Chrome Display
VistaPrint Display
Weight Watchers Display
TNT/Men of a Certain Age Display and Audio
Norton Security Display and Audio
Spring Hill Suites Display and Audio
Bank of America Display
Sesame Place Display and Audio
Honda Display

Zach Rodgers contributed to this story.

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ABOUT THE AUTHOR

Kate Kaye

Kate Kaye was Managing Editor at ClickZ News until October 2012. As a daily reporter and editor for the original news source, she covered beats including digital political campaigns and government regulation of the online ad industry. Kate is the author of Campaign '08: A Turning Point for Digital Media, the only book focused on the paid digital media efforts of the 2008 presidential campaigns. Kate created ClickZ's Politics & Advocacy section, and is the primary contributor to the one-of-a-kind section. She began reporting on the interactive ad industry in 1999 and has spoken at several events and in interviews for television, radio, print, and digital media outlets. You can follow Kate on Twitter at @LowbrowKate.

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