Pandora Increases Programmatic Offerings, Allows For Demographic Targeting

Brands can use data for unique opportunities

Brands that want to advertise on Pandora can now target users based on specific demographics, further emphasizing the streaming radio service's move toward programmatic advertising. 

"When you are buying programmatically on Pandora, whether on Web or on mobile, you are getting declared age, gender and residence location," Pandora vp of product Jack Krawczyk said. "Brands can now layer that with what Pandora has done with multicultural communities. It's really allowing advertising communities to enable their buys at higher integrity."

Previously, brands that wanted to advertise through programmatic offerings on Pandora could only buy based on their specific audience demographics. For example, early Web programmatic partner Kellogg's could advertise to Pandora users who visited their sites. Now, brands can upload their own creative and select a certain demographic to target.

Google, which has been using the streaming radio's programmatic platform for Web and mobile offerings, spoke highly of the opportunity to reach new audiences.

"Pandora's unique content proposition, demographic make-up and reach enable Google brands to achieve our branding goals via programmatic," Google North America digital strategy and media lead Bob Arnold said. "We've been extremely pleased with Pandora's partnership and campaign results."

Advertisers can use listener insights to create branded opportunities, and Pandora is allowing brands to leverage its data to reach consumers. 

For example, Lexus created a free, four-date Southern California music series with Pandora in which all the acts were picked based on user age and musical preferences in the area. The campaign, which was created to promote the Lexus F Sport, drove 94 percent brand awareness for Lexus, according to Nielsen research. In addition, 29 percent of consumers said that Lexus was the No. 1 auto brand they could name off the top of their heads. Twenty-three percent of attendees were more likely to search for information about Lexus compared to a control group.

"Our partnership with Pandora allows us to target a younger, affluent audience with the Lexus brand and product like the IS and CT," Lexus western area gm Kevin Fletcher said. "We connect fans with their favorite artists and give them an experience they won't forget."

Pandora's increased programmatic offerings reflects a trend among streaming music services beginning to ramp up their ad products and showcase the wealth of targeted data they can provide brands. On April 8, iHeartRadio announced  it would allow brands to buy ads programmatically across its more than 850 broadcast stations. Spotify also announced recently that it would allow brands to target specific consumers through custom playlists based on user activity and preferences.