by Ed Ryan
Pandora founder Tim Westergren strolled into the RAIN conference yesterday and could have easily been mistaken for any college kid looking for a Starbucks to plop down his backpack, flip open his MacBook and slide in his earbuds. Instead the former musician who couldn't get his songs played on the radio has developed a plan to make sure all performers have a place to be heard and get compensated for it. Westegren also had a quietly delivered message that landed like a hammer aimed at the people who will walk the floors of the Hyatt Hotel in Chicago today. That message; your advertisers are starting to drift our way and we plan to keep them. He makes a good argument. And he makes it with an air of confidence absent cockiness.
It does make you wonder. Well it should make you wonder. Westergren says "there is no doubt the future of radio is Internet radio." And, this time he gave some very specific details on how Pandora is having success taking revenue from radio. Westergren - who spends a lot of his time hosting town hall meetings with listeners - says "advertisers are flocking to this space and Pandora is experiencing a growing demand from them." He touted success from a car dealer in Dallas, Whole Foods in San Francisco and the hospitality category. Westergren said "we have visibility on the advertiser side and we are seeing a shift of money from broadcast to the Internet.
The question that remains is whether or not Pandora can bring in enough advertiser revenue to pay the bills and satisfy shareholders over time. What is that hourly spot load count that will turn listeners off? It's clear Westergren believes Pandora will grow and prospe. "We run over 500 simultaneous campaigns which allow us to target. Advertisers recognize this is a good place to spend money. There is a growing demand from local advertisers. He added traditional radio "is approximate and will not survive in an age of data. Accuracy is in demand." Westergren says Internet radio is drawing ad dollars because it offers site, sound, motion and data.
Maybe, just maybe, Clear Channel's John Hogan has it backwards. Maybe Pandora is much more than a playlist on shuffle. Maybe it is a viable business model that offers consumers a radio experience they love without unbearable interruption. Maybe it offers advertisers geo-targeted ads using site, sound and motion but more importantly provides them with accurate and specific user numbers not AQH, rating and share projections.
feedback edryan@radioink.com or leave comments below.
(9/14/2011 6:19:28 AM)
The Radio Industy Executive's Perspective: "Maybe it offers advertisers geo-targeted ads using site, sound and motion but more importantly provides them with accurate and specific user numbers not AQH, rating and share projections."
The Internet Radio Executive's Perspective: "It offers advertisers geo-targeted ads using site, sound and motion but more importantly provides them with accurate and specific user numbers not AQH, rating and share projections."
There is a difference!
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