Pandora Gains Access to $14 Billion Radio Ad-Sales Market

Pandora will compete directly with radio stations for the first time on the industry’s biggest advertising services, gaining better access to the $14 billion annual ad-sales market.

By May, advertisers will be able to compare Pandora’s audience ratings alongside those of radio stations through services that account for 80 percent of local ad sales, Chief Executive Officer Joe Kennedy said. The change eliminates a hurdle for ad buyers and Pandora, which is opening sales offices in the 25 biggest U.S. media markets, Kennedy said. Buyers previously had to manually research Pandora ratings. While early adopters made the effort, the change simplifies the process and will expose Pandora to a larger group of marketers, he said. “Pandora will now be there side by side, apples to apples, in the same systems used every day to purchase radio advertising,” Kennedy said. “We get terrific visibility on these systems.”