Is Pandora 'Radio'? The Boston Globe Looks At Pandora's Local Ad Sales Push
July 9, 2013 at 3:59 AM (PT)
"PANDORA MEDIA INC. recently opened its first sales office in BOSTON as the Internet music streaming company is aggressively competing with local radio stations for advertising dollars," writes MICHAEL B. FARRELL in THE BOSTON GLOBE.
The report notes PANDORA continues to bleed money, posting a net loss of $38 million last year. But will being in BOSTON help lower those losses? Possibly, writes FARRELL, "if the company can convince longtime radio advertisers such as car dealers or furniture sellers that advertising on an Internet station is more effective than marketing over the airwaves."
"When you have 200 million registered users, that creates a whole new opportunity to talk to local advertisers," PANDORA VP/East Coast Operations ANDY LIPSET said. "We’ve reached the scale now. We’re a top radio station in BOSTON because we have so many listeners."
However, CCM+E Pres./National Sales TIM CASTELLI told THE GLOBE, "PANDORA doesn’t compete directly with broadcast radio nationally or locally because it’s not radio in the real sense of the word. PANDORA is a play-list creator, which means it can’t deliver what makes radio -- the rich personal and interactive experience that radio brings its listeners."