Setting the Record Straight—Pandora Keeps Innovating Audio
Casey Fandacone, Manager, Sales MarketingAs audio consumption shifts further into the digital landscape, Pandora is leading the way, offering experiences that traditional radio can no longer compete with. While the golden age of radio has passed, the demand for audio content is as strong as ever. Digital platforms like Pandora deliver unmatched reach, precise targeting, and personalized solutions that AM/FM radio just can't provide.
Let's explore how Pandora is driving the future of audio—both at home and on the road—by delivering the personalized, targeted experiences that modern listeners and advertisers crave.
Streaming Takes Over Our Ears
Audiences aren't tuning into AM/FM as much as they used to, but that doesn't mean their need for audio as a daily companion went away. Streaming audio (as well as SiriusXM radio and podcasts) now command a greater share of time spent. From 2015 to 2024, AM/FM listening decreased by 28% while streaming and podcast listening have increased by 53% and 413% respectively.
Pandora’s Opt-In Model Makes a Difference
Quarter after quarter, Pandora consistently leads in ad-supported reach for a reason. Unlike traditional radio ads, which are served to all listeners, Pandora ads are designed to enhance the listening experience—not interrupt it. Ads on Pandora are more than standard audio insertions; we offer a portfolio of solutions that range in format, length, and frequency to ensure that the right listener is given the right ad based on their listening patterns.
No wonder 87% of Pandora's audience choose the ad-supported subscription. This grants brands the best of both worlds: massive reach and an ad-receptive audiences.
The Future of Audio is Digital
The era of traditional AM/FM radios, from the home to portable radios, is a thing of the past. Today, the radio industry depends heavily on in-car audiences, with 68% of all radio listening happening in vehicles each week.
But the auto industry is embracing a digital future, with many automakers removing AM radios from new vehicles, especially EVs, since electric motors are proving to interfere with AM reception. As the future of AM/FM radio’s addition to cars comes into question, audio access is still critical for drivers. Owners of newer car models are more likely to listen to SiriusXM, streaming, and podcasts over AM/FM in the car compared to owners of older car models.
For Pandora specifically, the app’s in-car dominance continues to grow (time spent listening to Pandora via connected car integrations has grown 8% year-over-year). Whether it's tuning into your favorite podcast on the way to work or enjoying a curated playlist during a family road trip, Pandora captures every in-vehicle moment where visual media falls short. With each passing year, Pandora’s presence in connected vehicles expands, seamlessly integrating into the driving experience.
The Leader In Local
If you currently advertise on AM/FM, you may be buying a handful of specific, local stations within specific markets and thinking that's the best avenue to resonate with a geographical audience. We’re here to tell you there’s a more effective approach. After taking a deeper look at how we compare against local radio formats, we found Pandora leads the way, standing as #1 in 204 US markets. From leading in Portland, to Phoenix, to New Orleans, to New York City, we’re larger than all broadcast radio formats for adults 18 and older).
Targeting Goes Deeper on Pandora
Remember that long drive you took, and after flipping through the traditional radio channels, you found them playing the same few songs—yet again? While traditional radio serves up songs based on chart rankings, often leading to repetitive playlists, Pandora was designed to transform how people discover and enjoy music. Its magic lies in the perfect mix of art and science, introducing you to new tracks, reconnecting you with the artists you love, and crafting stations that perfectly match your vibe. This music technology has allowed us to build a community of devoted listeners who have grown with the platform and return time and again for the unique experiences they know and love.
We understand our listeners—from tastes, to preferences, to lifestyles—better than AM/FM radio ever could. This understanding translates to the ultimate targeting solutions for advertisers:
Activity targeting: Instead of advertising on a radio station that's airing nationally, utilize Pandora’s activity-based stations, like Cleaning or Family Time, to serve your ads when audio accompanies listeners during activities that are relevant to your brand.
Mood targeting: Tap into stations and genres that are directly tied to a listener’s mood, like Happy or Love stations, to impact listeners when they’re in a headspace that’s more ad-receptive.
A Powerful Companion to AM/FM
Still advertising on AM/FM and not ready to turn the dial? Consider adding digital audio to your existing strategy and see how it can help your campaign reach new heights. Adding SiriusXM Media to your radio strategy is proven to deliver +18 percentage points of incremental monthly reach beyond what traditional AM/FM terrestrial radio offers, granting your brand access to net-new audiences.
Year after year, Pandora continues to deliver the personalization, cultural connection, and storytelling capabilities that advertisers simply can't get on radio. Ready to take your next audio campaign to new heights? Let's talk.
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