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How Much Cost to Advertise on Pandora Internet Radio Stream?

Latest update internet radio stream Pandora advertising cost delivering advertisement services has grown considerably," said by company blog post.

"For example, the royalty rates Pandora pays to performers via SoundExchange for subscription listening has increased 53 percent according to last five years and it will increase another 9 percent in 2015."

SoundExchange is a nonprofit that collects royalties on behalf of artists.
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Pandora's ad-free internet radio service debuted in 2009 for the very affordable price of $36 a year. Those were the good old days. Today the company announced that its monthly fees will increase from $3.99 to $4.99 and the annual option will disappear entirely due to rising licensing costs on Pandora.
Existing monthly subscribers will be allowed to continue paying $3.99 for now, and annual subscribers will be transitioned to the discounted $3.99 monthly rate.

The price hike is a risky move, given that data suggests customers are willing to spend an average of about $48 a year on digital music. However, Pandora is still cheaper than its competitors. Spotify and Beats Music are both $9.99 a month, while Rdio is $4.99 for web streaming, $9.99 for web and mobile streaming, and $14.99 if purchased through the Apple App Store.

Pandora internet radio streaming has been becoming royalty costs for years.
Last year 2013, 48 percent of its revenue went to pay for music. The company continues to make almost four times as much money from advertising on its free service as it does from subscribers. Pandora, a public company, made over $600 million in revenue in 2013 but its net income was negative.

So Why Advertise on Pandora Internet Radio?

Perhaps the biggest reason is there is very little “advertising clutter.” I’m and old radio disc jockey and salesman from the 70′s when radio was fun — and worked for our customers.

Today, most radio stations run 5 to 10 minutes of advertising at a time. If your commercial is the last spot in the “cluster” then you might as well forget about any recall.

That’s what makes Pandora Radio so great. There is one 30 second commercial at a time — and only about 4 an hour. Your commercial will stand out, and the listener can not dismiss the commercial (unless they turn in off).

You Get a Tight Target Audience With Pandora







You can select who hears your ad by age, music and zip code or county. For example, if you are retail store, you can target just the people that are listening within 5 or 10 miles of your store. That now makes radio affordable for just about any business.

I’ve always struggled with clients who had one or two retail locations in a city like Dallas but were forced to buy radio on a station that had listeners 75 miles away. Now, that can be a thing of the past.

You Get the Power of the Internet With Pandora

Because most people are listening to Pandora on their smart phones, your Pandora radio ad comes with an Internet Banner that can be viewed. If prospects want more information, they can just “tap” the screen and go straight to your offer on your Web site. How cool is that?

With this service, you can quickly test your ad and know where your Internet traffic is coming from.

How Much Does It Cost To Advertise on Pandora?

It really is only “pennies per ad.” My firm, Bagwell Marketing, as negotiated special pricing for small and medium size businesses.

Pandora says it’s previous 30-day active listeners had increased to 49 million in February versus 47 million in January, and that it had 150 million registered users as of January TargetSpot shared data that showed that 42% of the U.S. population is listening to digital audio Triton Media Group said monthly current Internet radio cpm rate for those online listeners would grow from 116 million in 2011 to 186.3 million by 2015.

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