In March, Pandora hired local sales staff in St. Louis as part of its strategy to court local advertisers, and it’s had success out of the gate landing customers. Don Brown Chevrolet, Barnes-Jewish Hospital, St. Louis University and Panera Bread Co. are just a few of the advertisers that have booked ads on Pandora so far this year.
It’s spent the past two years expanding its sales staff nationwide.
Its regional sales staff of 60 employees nationwide is growing, and Pandora plans on ultimately having an office in each of the top 50 radio markets.
“Radio is a very unusual media form in that most of its revenue comes from the local market,” said Rich Tullo, director of research at New York brokerage Albert Fried & Co. “The ad rates are higher because it’s local. Ultimately, it will take dollars away from other radio stations.”
72.7 million active monthly users.
For those who listen to Pandora on their smartphones or laptops, they’re prompted to enter their ZIP code, year of birth and gender. Users can select the artists’ music they want to hear, and Pandora adds similar music.
“We have one-fourth the number of ad units that a traditional FM station has, so your ad will stand out more,”
Pandora has yet to post an annual profit.
has more than 70 percent market share in the U.S. Internet music segment,
St. Louis radio station managers say they haven’t seen a decline in their ad revenue since Pandora entered the market, but they’re watching the new competitor closely.