Pandora is gunning for a slice of the visual mobile ad market as it gears up to roll out its new formats to advertisers from January 19.
The adverts were trialled during a pilot phase with select beta partners last year, including Denny’s, Express, Google, the Lexus Dealer Association and Ascent Protein.
They appear in the square space where users of its radio-style streaming service usually see album art, and feature an option to dismiss the visual.
Advertisers can measure listener engagement and are able to serve videos on mute, with users tapping to hear the sound and watch in full screen.
“At Pandora, we believe what is good for the listener is good for the advertiser,” said John Trimble, chief revenue officer at Pandora.
“We saw an industry-wide problem with visual mobile ads and focused on what ‘the impression’ initially set out to achieve: viewability, time spent, attention and engagement.”
john trimble, CRO, Pandora
“We saw an industry-wide problem with visual mobile ads and focused on what ‘the impression’ initially set out to achieve: viewability, time spent, attention and engagement.
“We’re changing the game by helping advertisers think less about traditional impressions and more about the quality of each interaction.”
Millward Brown research found that on average, beta partners saw up to 50% increases in time spent with the new formats when compared to previous ads, and double digit lifts in brand favourability, awareness and message resonance.
Advertisers using the new muted video solution saw a 32% increase in listeners who spend at least five seconds with the video, as well as strong completion rates, according to the report.
Pandora posted a net loss in excess of $250m in the first nine months of 2016, with total revenue of $992.5m.
During the same period, advertising revenue hit $759k—up 14% on 2015.
In December, news broke that one of its highest ranking executives, Chief Operating Officer Sara Clemens, is leaving the company.
Rumours are currently flying around Wall Street that Pandora is ripe for a buyout, with the most likely suitor SiriusXM.
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