WARNING! WARNING! Pandora Targeting Radio's Advertisers And Station Clutter.
July 12, 2011
July 12, 2011
Pandora executives are making it crystal clear how they plan to grow revenue. They are going after radio's advertisers, both national and local and they say they are delivering a "dramatically better radio experience." And, Pandora is going after an Achilles heal for radio, overloaded stopsets and hours and hours of clutter, be it commercials, talk, liners, whatever. Pandora is downloaded on one out of every two smartphones purchased. It has delivered 3.9 billion listener hours in fiscal year 2011. And, Pandora executives say, "listeners are in control." "A far cry from what listeners are used to with radio" according to Tim Westegren.
Pandora President and CEO Joe Kennedy explained to investors why Pandora is seeing early results at the expense of radio. "We get a modest premium over traditional broadcast radio. We'll get that for a :15 spot over what advertisers would pay for a :30 or :60 spot on radio. The key differences are: our ads are targeted, interactive and measurable, which is not the case for radio. And it's such a superior environment, less cluttered. If you are the advertiser on broadcast radio, you are one of 13 minutes of advertising in an hour. It's much less valuable to an advertiser to be stuck in the middle of a 6-minute pod." He added "Pandora is this wonderful environment that really allows an advertiser to focus on communicating its message to the target consumer as opposed to trying to break through the clutter."
Pandora Chief Revenue Officer John Trimble discussed the $37 billion radio advertising pie. "While that pie is not growing, we see it as an opportunity." Trimble also discussed the local sales teams calling them "our feet on the street" offering advertisers sight, sound, motion and emotion. He showed investors a slide with details of the company's expanding sales offices. And he said Pandora has had 8 quarters of triple digit revenue growth. Another very interesting point made by Tim Westegren in today's call was the fact that Pandora has been holding listener town hall meetings all around the country to get feedback. When was the last time your radio station held a town hall listener meeting? When you do, perhaps the opening question should be, are you all comfortable hearing 15-20 minutes of commercials and chatter every hour? just remember to duck after you ask.
(7/13/2011 4:31:27 PM) |
Last I heard, 93% of Americans were still listening to traditional radio every week. I wish the radio industry would stop panicking and realize that just because Pandora is successful, it doesn't mean the end of the radio business. Take pride in your stations, make them better, keep them local, and stop stripping them of what made local radio great in the first place.
|- abbie korman|
(7/13/2011 2:42:06 PM) |
Entertainment: “To engage the attention of guests agreeably; amuse; divert.”
Our listeners are our guests. Get them to laugh, find solutions, hear something relevant, ease their pain, share their concerns, validate their beliefs, provoke them and we’ve entertained them.
Do that with your commercials and TSL will go up, clients will get results and revenue will increase.
Hey it’s not your fault – you haven’t been taught how to entertain and market simultaneously. http://www.radio-creative.com
|- Jeffrey Hedquist|
(7/13/2011 12:37:46 PM) |
When most of music radio is a hype of the website, there's nothing to what is between the songs of real interest.
It's like trying to train a puppy. Want the treat? Want the treat? Want the treat? Go to the website.
Which may or may not pay off.
Plus, how many people, already multi-tasking, or in cars, are going to stop what they are in the middle of, to go check the site? And then how easily will they find the treat?
Boring meaningless self serving liners are just as weak.
|- Bob Wood|
(7/13/2011 11:38:42 AM) |
The key is more entertaining commercial content. The listener tuned in for entertainment. If the entertainment stops, so does the listening. Create better spots and the listeners will stick around. Hold your advertisers to some standards. http://tuneyourradio.com
|- Brent Walker|
(7/13/2011 9:54:01 AM) |
turn in your license the sky is falling the bigP is going to rain on your (internet)radio parade. for Gods sake its a fricken internet i-pod gone pubic. everyone acts like this idea (the bigP) is new. go to shoutcast, live365, loudcity find a internet station. if there is a threat it comes from these site rather than the bigP. its Panbora (as its referred to on the street) the boogie man!
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