Pandora is planning to add native advertising to connected automobiles where the streaming music service is available, the company said during today’s Q4 earnings call.
The company emphasized that its music service is now available in nine of the top 10 leading auto makers’ vehicles. On the call, Pandora president Brian McAndrews also explained the company sees a big opportunity to boost its ad revenue in cars, even though listening hours from connected vehicles only account for “single digits” of total hours listened.
Radio advertising within vehicles is a huge business, and one that Pandora hasn’t really gone after previously. (Although connected vehicles have been part of Pandora’s overall strategy for years now.) Yet with Pandora continuing to build out its local ad sales, in-car advertising could become a lucrative part of the company’s overall revenue.
McAndrews also said Pandora will invest more of its resources in new native advertising opportunities, programmatic ads, and new features to boost listener hours.
Pandora had a lot of positive numbers to report in its Q4 2013 earnings report. Profit, total listener hours, paid subscribers, and active user activity were all up record levels. And the company brought in revenue of $201 million for Q4, the highest its been since Pandora went public.
But Pandora’s stock price? Yeah, it’s down more than 10 percent in after hours trading to $32.50 per share.
Shareholders are likely concerned that the rate of growth isn’t higher, especially in the face of increased competition from a freshly cash-infused Spotify, Apple’s iTunes Radio, and the new Beats Music service. When you combine the slower than expected growth with a less than favorable Q1 guidance, you get a lot of nervous shareholders.
Our fourth annual VentureBeat Mobile Summit, April 14-15 at the scenic Cavallo Point Resort in Sausalito, Calif., will gather the top mobile 180 executives to tackle the biggest growth opportunities in the industry today. Request an invitation.