SoundCloud has partnered with Pandora as its exclusive US advertising and sales representative.
Launching in 2019, the agreement will enable advertisers and brands to purchase SoundCloud’s US ad inventory directly through Pandora, leveraging the company’s direct sales capabilities, targeting data, and its recently launched audio programmatic product
Pandora, which currently has around 70 million monthly active users, was acquired by SiriusXM for $3.5 billion last month – a deal which is set to go through, subject to board approval, in Q1 2019.
SoundCloud and Pandora’s combined ad audience is more than 100 million, with the duo claiming that the deal marks the creation of the largest digital audio advertising marketplace in the US.
Digital audio advertising grew 40% in 2017 to $1.6B according to the Interactive Advertising Bureau (IAB), and is becoming an increasingly important medium to reach consumers, thanks to the proliferation of voice-enabled apps and devices.
“Pandora and SoundCloud’s combined audience offering creates the clear market leader for brands to reach US music fans,” stated Kerry Trainor, Chief Executive Officer, SoundCloud.
“Through this partnership, we gain access to Pandora’s world-class sales team and capabilities to connect more brands with our young, highly engaged users who know what’s next in music is first on SoundCloud.”
“THIS PARTNERSHIP IS A FANTASTIC MATCH.” ROGER LYNCH, PANDORA
“This partnership is a fantastic match between Pandora’s industry-leading ability to monetize digital audio and SoundCloud’s large audience and vibrant community of US listeners,” said Roger Lynch, Chief Executive Officer of Pandora.
“Investments we’ve been making in our ad capabilities, including the recent acquisition of AdsWizz, further solidify Pandora’s commitment to help publishers monetize the rapidly growing digital audio market.”
The new agreement expands Pandora’s global relationship with AdsWizz, which it acquired in a deal worth $145 million in March.
Shortly before that acquisition was announced, MBW reported that Pandora’s quarterly advertising revenues fell 3.9% year-on-year in Q1 2018 to $214.57m, with its ad revenue making up 67.2% of all sales across the quarter.
H/T : Music Business Worldwide