There are two different types of advertisements on Pandora. There are the
advertisements which are pushed upon you and are unavoidable these are the ones
that pop up after skipping a certain amount of songs that you have to listen to.
Then there are the pull advertisements which require the user to interact with
the ad by clicking on it to see what it is about (Friends). Both are effective
because the user will see both of them but the push advertisements are more
effective. This is because it forces the
user to listen to what the company has to say and see what they have to show.
Pandora is different from sites such as Facebook, and Pinterest because the
advertisements are paid for by the company and that generates revenue for
Pandora. Traditional radio is becoming less and less popular with the
introduction of Sirius and XM radio and Pandora radio. The difference though,
is that Sirius and XM are commercial free so companies cannot advertise on
them. This creates a problem because now less people are listening to the
stations that companies are spending money on to advertise. Pandora however
says that its "technology can cater to consumers with far greater
precision than radio — it can pinpoint listeners by age and sex, ZIP code or
even musical taste" (Vega, Ben). This means that companies will be able to
advertise to their consumers more efficiently and will be able to spend their
money more wisely. Pandora is also growing more and more popular in the last
two years the amount of users has almost tripled. This means companies are
constantly having more people to advertise to. William Feinstein owner of
Planet Honda in Union, New Jersey said he gave up on radio and started
advertising on Pandora because he realized with Pandora's zip code targeting he
can advertise on one site versus five different radio stations. William Feinstein
also has seen improved results with his website receiving quadruple the views
it had before (Vega, Ben).
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