Pandora’s Mobile Ads Are Working, But Get Ready to Hear More of Them
Facebook received heaps of praise last month when it reported that mobile now accounts for 41% of the company’s advertising revenue. On Thursday Pandora outdid the social network when the Internet radio company that mobile made up 70% of the company’s $128.5 million in second-quarter advertising revenue.
Pandora’s mobile advertising revenue has grown to the point that the company will be eliminating a recent move to convert some power mobile users into subscribers of its ad-free service. The company, which has been hampered by ballooning costs for acquiring the songs it streams and seen its stock hurt as a result, has also begun experimenting with increasing the amount of ads it airs, further underscoring advertising’s importance to its bottom line.
Advertising Age discussed Pandora’s advertising business in an interview with the company’s chief revenue officer John Trimble following Thursday’s earnings call.
