Study: Pandora Not A Major Threat To Radio Ad Dollars
May 24, 2013

A new study of advertisers finds that while advertisers are gaining interest in Pandora, they do not see it as a serious threat to traditional radio. Media Life, a magazine targetting media planners and buyers, surveyed its readers on their opinions about the popular digital music service.

Only 28 percent of those surveyed saw Pandora as a serious threat to terrestrial radio, while 39 percent said it was a "medium threat" that could develop into something bigger down the road. Meanwhile, 22 percent dismissed Pandora as a "small threat," saying it is not an effective alternative to terrestrial radio.

One Media Life reader said, "While it certainly has many advantages (targetability, don’t have to buy multiple formats, tracking) there is still value in local radio with the DJ connection, and the time-shift listening from one medium to the other based on daily behavioral habits," while another said, "Without any local content it’s just a music source not the same as traditional radio."

When asked where Pandora ad dollars were coming from, 45 percent said it’s being moved from radio budgets, and 28 percent said from online budgets, while 13 percent said it is new ad money earmarked for online radio.

Media Life also asked what percentage of its readers’ clients advertise on Pandora, and it remains a pretty small number. The greatest number of respondents, 41 percent, said 10 percent or fewer use the service. Only eight percent said that half or more of their clients advertise on Pandora.

More details and responses can be read on Media Life's website here.

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Mark Adams
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