Thursday, December 1, 2011

Pandora looking for traditional measurement to compete with radio stations

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Pandora owns 4% of all US radio airplay time, but has been challenged by the measurement of their audience to compare their reach with traditional radio stations.  From July 31, 2010- July 31, 2011, earned  $203 million in revenue, $176 million came from advertising.  Every year, radio receives $17 billion in re venue, and Pandora believes that by having a universal audience measurement tool between streaming and air, they can begin to profit more from advertising.  They are working with Arbitron, who believes they will have a solution for Pandora some time in 2012.

According to AdAge, Paul Krasinski, senior VP-digital media at audience measurement company Arbitron, states that his company "will combine over the air and streaming measurement to provide a holistic look at audio consumption across devices, channels and platforms."

What other benefits does a measurement tool that can compare traditional radio listening and streaming radio listening have for the industry?  Do you see Pandora beginning to profit more from a tool like this?

1 comment:

Telmar said...

The measurment of online channels represents one of the greatest challenges in market research today. However, as techniques evolve and gain ever greater sophisitcation, media planning software will also evolve to keep pace, allowing advertisers to plan and implement effective advertising campaigns.