Measuring Pandora Advertising: 4 Takeaways

April 9, 2019 Ginna Hall

Do you hear what I hear? The audio market is expanding.  New platforms, technology and access have given consumers many new ways to listen and a lot of new content to listen to. You can now stream or download your favorite songs, radio stations and podcasts and listen at home, on your computer, or on your smartphone while you’re on the move.

As streaming continues to grow, the library of video and audio content is ballooning at an exponential rate. This has created new options for marketers. But to capitalize on these new engagement opportunities, marketers need to ramp up for the omni-media world.

Measuring Audio Advertising

The largest streaming music provider in the U.S. is Pandora. With an industry-leading digital audio advertising platform, it reaches over 100 million unique listeners every month. Pandora advertisers have the opportunity to reach their audiences through ad solutions including audio, video, display and sponsored content.

But how do you know if your advertising efforts on Pandora are effective?

Recently, Pandora, Nielsen and AdWeek teamed up to present Measuring the Effectiveness of Pandora Advertising (now available on-demand). At the webinar, Keri Degroote, SVP, Research & Analytics at Pandora, Tsvetan Tsvetkov, SVP, Marketing Effectiveness, and Jeff Shatz, VP, Marketing Effectiveness at Nielsen presented the results of a Pandora-commissioned study and shared how Pandora drives positive ROAS and business impact for advertisers.

Pandora participates in Nielsen’s Marketing Effectiveness Publisher Program, sharing granular, impression-level data with Nielsen to ensure accurate representation and measurement within its models, and providing training on its ad products to build internal Nielsen expertise.

Measuring Pandora Advertising

Findings from Pandora-Commissioned Study

Nielsen conducted a two-year marketing mix modeling analysis of the carbonated soft drink category. The study included three manufacturers, over 60 Pandora campaigns, and a total of $1.3B media spend across tactics.

Marketing mix modeling calculates the total effect that every marketing channel and its key dimensions, such as product and geography, have on sales and other performance metrics, while controlling for exogenous factors such as weather and holidays that impact business performance.

Companies use marketing mix modeling to support fact-based budget allocation decisions. The insights provided by the model allow them to divide limited resources as efficiently as possible and with the highest ROI.

4 Takeaways for Marketers

Marketers in every vertical have adopted marketing mix modeling because it both serves their business' operating cadence and supports strategic planning. Here are four takeaways from the Pandora study.

Takeaway #1: Use Audio To Engage With New Audiences

Pandora is the largest digital audio streamer in the U.S., which allows brands to reach valuable customers. Advertisers can use audio to precisely target audiences through Pandora’s robust proprietary data and over 2,000 first-party and third-party audience segments.

Takeaway #2: Cap Frequency and Maximize Reach

Pandora received less than 1% share of total category advertising spend, but generated 22% share of ROAS. For the carbonated soft drink category, the Nielsen analysis showed how brands can see significant improvement in sales impact by optimizing their plans for reach, while managing campaign frequency levels. Brands planning campaigns with Pandora should plan to maximize reach, which will increase effectiveness.

Takeaway #3: Optimize Media Spend With Shifts Across Channels

Brands can optimize their marketing mix allocation to improve overall effectiveness and sales impact. The study revealed that minimal tweaks in media mix allocation --- away from less efficient tactics and re-allocated to achieve more optimal impression levels on Pandora --- can grow revenue impact overall and improve ROAS. A minimal adjustment to investment by channel can yield significantly better results overall for the category.

Takeaway #4: Leverage Granular Data To Measure ROI

Understanding where Pandora fits into the overall marketing mix results can improve how brands maximize the platform’s effectiveness. Modeling at the correct level of granularity is essential for maximizing model accuracy and actionability. The most effective marketing mix models are built on very granular data and yield granular insights. Leveraging granular data helps advertisers build long-term strategies that can effectively drive better business results.

Watch Today

View Measuring the Effectiveness of Pandora Advertising on-demand to learn:

  • More findings from Nielsen’s study of the impact of Pandora advertising on sales
  • How campaigns on Pandora can contribute to better overall impact and efficiency across the media mix
  • Why marketing mix modeling plays a critical role in a performance measurement strategy
  • Tactical recommendations to make ROAS stronger overall for marketers

Competition is steep, and marketers must make every dollar count. But shifts in media consumption behavior to digital has made getting insight into marketing effectiveness more difficult. Marketing mix modeling can help you optimize your tactics on Pandora or other channels to drive the greatest returns.

Request a Demo

Learn how Nielsen can help you measure and optimize your marketing and advertising: Request a demo today.


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