Pandora announced its second-quarter results yesterday (remember, it’s public now) and it shows something quite incredible: mobile ads account for more than half of its overall advertising revenues.
Pandora is one of the many companies which benefited from the app explosion, as it went from a cool business that was teetering on the brink of extinction to a publicly-traded company with $67 million in revenue. While it still reported a loss for the quarter, the mobile advertising is ramping up and accounted for $30 million of its $58 million in advertising revenues. The other revenues came from subscriptions and the company saw its audience listen to 1.8 billion hours of music in a three-month period.
“Pandora is personalizing radio — and consumers are enthusiastically embracing the dramatically better experience,” said Joe Kennedy, President & CEO of Pandora, in a prepared statement. “At the same time, advertisers continue their adoption of Pandora’s multi-platform ad solutions, resulting in our 6th consecutive quarter of year-over-year triple digit revenue growth. In addition to continued high growth in web revenue, Pandora’s mobile advertising revenue for the first time comprised approximately half of total advertising revenue as we lead the way in the nascent but fast growing mobile advertising market. Pandora continues to grow our market share of U.S. radio as we fundamentally transform one of the last forms of traditional media.”
Things are looking okay for Pandora in the future but its costs still remain a major concern, as it still has to pay costly licensing fees for its content and it’s unclear how well its mobile apps will do with increased competition from the likes of Spotify, Slacker, Mog, BlackBerry’s new music service and more.