Want to Reach More people? Radio Beats Pandora

When advertisers invest their hard earned money, the last thing they want to do is to annoy their potential consumers. A recent post on the Westwood One “Everyone’s Listening” blog points out that a number of Pandora listeners are hearing the same exact audio spot – lots and lots of times.

“Why Are People So Angry About Pandora Ads?” the radio network asks, before explaining that a senior marketing executive for a major American retailer told author Scott Anekstein that Pandora listeners light up social media in anger, “complaining bitterly about hearing their ad over and over.”
According to the Nielsen Commspoint media planning platform, when you buy more commercials on Pandora, its reach curve increases, but only at first. This means that as an advertiser increases spending on the music streaming platform, its reach does not increase. For AM and FM radio, as you add run more commercials, “reach keeps growing and growing.” Westwood One concludes that “Pandora has a reach problem.”
Most of Pandora’s listening comes from a very small number of people. According to Edison Research’s “Share of Ear” study, 5% of Americans represent 72% of Pandora listening. So: “Spend a little money on Pandora, you quickly run out of new people to reach.”
Like other web pureplay companies, Pandora sells ads by number of impressions. Westwood One states that the company does not reveal the number of different people exposed by an ad campaign or the number of times people hear the ads, Anekstein explains.
As spending increases on Pandora, frequency increases, so listeners hear the same ad repeatedly. “No wonder Pandora listeners take to social media to complain to advertisers,” Westwood One states. “As you add media weight to AM/FM radio, frequency grows very gently. Expanded investment on AM/FM radio results in greater reach, not excessive frequency.”
Anekstein also presents figures that say Pandora’s audience is shrinking. Edison Research’s “Share of Ear” shows Pandora’s 18-24 audience is down 26% compared to the previous year. “In order to hit their impression goals, Pandora will have only one choice: Increase the number of times their listeners hear ads.”
The takeaway for advertisers, according to Anekstein: “Spend just a little bit on Pandora. Use AM/FM radio to grow reach and grow sales.”
Des Moines advertisers already know that they can reach a large audience of potential consumers using the Des Moines Radio Group stations. Now they can also be sure that investing extra money in a Pandora campaign will only increase the number of times the company’s heavy uses will hear the same ads. Call us today, and put your marketing dollars to work for your business.