So what's the big deal for investors?
On Wednesday, Pandora announced that Triton Digital released a product that will -- and consider this an understatement rather than an overstatement -- change the game in terms of how advertisers decide to allocate their radio dollar. As the company's press release explains:
Triton Digital will measure [Pandora's] audience size and reach nationally and in local markets with the new Triton Webcast Metrics Local solution, a market-specific version of Triton's national Webcast Metrics audience measurement platform. The new Triton data makes it easier for radio buyers to quantify the size and scale of internet radio at the national and local level.Here's the nutshell version of why this is a game changer: While Pandora already experiences success pitching local and national radio buyers advertising, it can now walk into a room with local ratings data compiled and crunched by a third party. Pandora can compare itself, from a ratings standpoint, with radio stations in local markets. It took forever for somebody to do this. If Arbitron (ARB) did not rely on Clear Channel (CCO) and other terrestrial radio companies for a vast majority of its revenue, it probably would have stepped into the century years ago. In fact, if Arbitron was a real, living, breathing and truly independent and entrepreneurial company, it would have bought Triton or a similar firm years ago.