This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Today Pandora Officially Crushes Terrestrial Radio

Stocks in this article: PARB

In any event, on the ground, here's how it looks. Today, a Pandora sales rep can walk into a meeting with a client in the Dallas-Fort Worth metro area, for example, and make jaws drop.

I obtained Arbitron ratings numbers for the DFW market covering the three demos Triton reports for Pandora in the March ratings period during the Monday to Sunday, 6 a.m. to midnight daypart (for the record, I follow Arbitron's fair use guidelines for publishing details of its proprietary ratings data):

  • Among 18- to 34-year-old adults, Pandora, based on a comparison of Triton's data with Arbitron's data measuring terrestrial radio listening, ranks No. 1 in the market, with a 1.1 AQH Rating. That puts it ahead of the top terrestrial broadcaster in the market, a heritage Top 40 station, by a considerable margin.
  • Among 18- to 49-year-old adults, Pandora comes in tied for first place with the same Top 40 station.
  • Among 25- to 54-year-old adults, Pandora ranks second, just behind the same Top 40 outlet.

Several important notes for the record: First, it's no surprise Pandora sports a stronger showing in the 18- to 34-year-old demographic, as its audience skews to the younger end of the larger 18- to 54-year-old group.

Second, an AQH rating equals the percentage of people listening out of the entire target population, whether or not they are listening to radio. Do not confuse this with AQH share, which measures the percentage of people listening out of all of those listening to radio at a given time. AQH stands for Average Quarter Hour. To show up in the results, a listener must tune into Pandora for at least five minutes during the specified time. In this regard, Arbitron uses the same methodology when tracking terrestrial radio listening.

That's powerful stuff. Maybe more importantly, Pandora can leverage these numbers to not only take an increasing amount of ad dollars from terrestrial radio, but to help buyers make the inevitable shift toward mobile environments with at least a portion of their budget. I outline Pandora's position in that regard in an article I wrote before getting this information.

In concert with new and improved ratings data and proof about the emergence of mobile -- and Pandora's dominant role in the space -- the company's salespeople can, do and will promote the power of Pandora's ability to target its listeners on the basis of factors such as age, location and musical taste.

A recent story drives home the power of targeting. Pandora created an "ad" for one of its users.

A guy in Texas wanted to propose to his girlfriend. They're Pandora listeners, so he hooked up with the company, who ended up producing an ad it played while the couple was listening. Nobody but the couple heard the ad. It was completely personalized to the girlfriend (who said "yes").

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs