Pandora Media Inc (NYSE:P) Advertisement Revenue Grosses $1 Billion Due To Effective Personalization


Pandora Media Inc (NYSE:P) is making a killing in web and mobile advisements thanks to its effective ads personalization. The online music streaming platform has reported a record $1 billion in advertisement revenue as a result of its mastery of listeners’ tastes and preferences from the music traits they listen to.

Music Listening Patten and advertisements  

From users’ listening pattern, the platform is able to figure out scratchy but useful details about their listeners. “The average Pandora listener listens 24 hours a month, so we have this wealth of personal data: when you listen, what devices you listen on, and what you like to listen to. “David Hardtke, Director of Advertising Science, Pandora.

The whole technique after establishing potential client’s details revolves around timing. Advertisements that are poorly placed end up irritating users and therefore, it is paramount that advertisers master the proper timing to play the ads and the less irritating point to place the ad.

Personalized ads

The platform leverages on Artificial Intelligence and Machine Learning technologies of ‘intelligent ad search’ to come up with proper timing and determine whether the advertisement was listened to or ignored. This feedback information is cherished by advertisers and will inform their future decisions to continue with the campaign, restructure or drop it altogether.

Pandora itself utilizes on user feedback to develop a personalized station playing tunes that are likely to appeal to that particular user. Initially the platform would play tunes of a particular genre and artist. Through its thumbs up/down rating system, the platform’s AI and machine learning tools will build up an ideal playlist for the listener.

Through the music one listen’s to, Pandora gathers a lot of data that will be useful in its advertisements. The platform can identify when you are listening alone, with your family, when you are driving and at the gym. During these different periods, the advertisement team can roll-out specific ads for the particular occasions. You are likely to listen to workout-related ads at the gym, G rated and X rated ads when you are listening with the entire family and when you are alone specifically.

However, Hardtke warns that personalizing should be done delicately to avoid overdoing which might turn out to be irritating to the target market.

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