Pandora happens to be one of the most popular music streaming services with more than 76 million monthly active users. A fraction of those users will now begin to see Promoted Stations in the list of “Stations You Might Like.” Pandora is certainly aiming to capture more advertising dollars now that online music streaming services are being increasingly adopted by customers around the world.
The company revealed today that 10 percent of its entire user base will see promoted stations. This is actually the first time that Pandora has incorporated an ad product inside the station list. While the company has seen a gradual rise in listening hours it has been working hard to improve its ad products in order to increase revenue.
This is certainly a major step in that direction. At first the company has created promoted stations for 10 national advertisers which include Kleenex, Taco Ball, StubHub, Toyota and more. The advertisers will create the music personality of their stations and will also decide how many ads per hour do the users have to listen to.
While the company is experimenting at a small scale right now it has plans to expand promoted stations to most users. Over the coming months Pandora will partner with more advertisers and gradually roll out promoted stations to its entire user base.