Brands now have the opportunity to share their musical tastes with Pandora’s user base. The music recommendation platform announced Monday they are beta testing an innovative ad unit, hoping to ramp up total advertising revenue. They’re calling this new format “Promoted Stations.”
Native ads address a massive opportunity for consumers and advertisers alike – how can you capture the intentions of someone at just the right moment, and then answer those intentions with branded content that is valuable and relevant?
– Jonathan Eccles (Product Manager Native Ads, Pandora)
Similar to Apple’s iTunes Radio, Promoted Stations allows ad partners to create their own music channels. The ten brands participating in the beta will gain exposure from ten percent of Pandora’s 75 million monthly listeners. Taco Bell, Skechers and Sonos are among the partners attempting to increase brand equity and awareness by means of Pandora’s alternative marketing strategies. In order to ensure successful partnerships, Pandora has created a team committed solely to the construction of their brand-partners’ music stations.
Advertising accounts for roughly 80% of Pandora’s income; the platform saw its total ad revenue increase 45% in the first quarter of 2014 to $140.6 million. Due to the large content-acquisition costs commonplace in today’s music economy, Pandora aims to compensate with an intensified effort towards brand partnerships and marketing. The future of the music industry concerns far more than music alone. It is up to innovative companies like Pandora, as well as receptive brands such as Taco Bell and Skechers, to push the industry forwards.
There’s a place where music and strategic, cultural branding intersect. For today at least, I think it’s safe to call this limbo, the music business.
Hear more about branding strategies in today’s music industry and music-discovery platforms at our NMS ’14 Movements:
The Branding of Cool: Round Table Discussion on Developing Artists, Technology, and Brands- An unlikely alliance.
On-line Media Music Discovery: How media is changing with the digital culture- what is the future?
Don’t miss your chance to attend this movement and others June 8–10, 2014 at New Music Seminar in NYC!
Experience NMS 2014