Pandora Surges As It Brings Radio Ads To A Car Near You

Posted: Jan 6 2014, 3:36pm CST | by , in News

 

Pandora Surges As It Brings Radio Ads To A Car Near You
Photo Credit: Forbes
 

Pandora Media stock leaped over 14% on Monday after it announced increased listeners in December and a new initiative to bring its ads to cars, where most radio listening occurs.

Pandora reported more than 76 million active monthly listeners and nearly 1.6 billion listening hours last month, up 13% from a year ago. It says it now accounts for 8.6% of all U.S. radio listening, up a full percentage point during the same period. Cars are a relatively new opportunity, but Pandora is already a built-in feature in 130 car models, as well as hundreds of other aftermarket devices. Selling 15- and 30-second ad spots directly to this audience could be a new big source of revenue. BP, Ford, State Farm, and Taco Bell have already signed on to be the first national brands advertised through the service.

“We knew early on that to redefine radio, we would need to seamlessly deliver Pandora through in-dash entertainment systems,” Pandora CMO Simon Fleming-Wood said in a statement. “We are now seizing the opportunity to connect advertisers with a more targeted audience than traditional radio can provide.”

Pandoar offers a $4 per month premium subscription that allows user to avoid the ads, the vast majority of the company’s $427.1 million in revenue comes through advertising. The company has begun to mine customer music tastes to better customize the ad experience.

On CNBC Monday, RBC analyst Mark Mahaney selected Pandora as its number one pick in the intersection of automobiles and technology. Michael Pachter of Wedbush Securities said in a client note: “We expect in-car advertising to be a significant long-term revenue growth opportunity for Pandora.”

Pandora stock closed at $31.49, up 14.14% on Monday.

Follow Brian Solomon on Facebook and Twitter.

Fast Tech 25

Source: Forbes

This story may contain affiliate links.

Comments

The Author


Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

 

Advertisement

comments powered by Disqus