SoundCloud, the world’s largest open audio platform, and Pandora, the largest streaming music service in the United States, announced in a report that SoundCloud has partnered with Pandora as its exclusive U.S. advertising and sales representation.
Launching in 2019, the agreement will help advertisers and brands to purchase SoundCloud’s U.S. ad inventory directly through Pandora. This will leverage the company’s direct sales capabilities, targeting data, and its recently launched audio programmatic product.
“Pandora and SoundCloud’s combined audience offering creates the clear market leader for brands to reach U.S. music fans,” said Kerry Trainor, Chief Executive Officer, SoundCloud.
“Through this partnership, we gain access to Pandora’s world-class sales team and capabilities to connect more brands with our young, highly engaged users who know what’s next in music is first on SoundCloud.”
Digital audio advertising grew 40% in 2017 to $1.6 Billion according to IAB (Interactive Advertising Bureau), and is becoming an progressively important medium to reach consumers, thanks to the growth of voice-enabled apps and devices. Together, SoundCloud and Pandora’s combined U.S. audience offering reaches more than 100 Million unduplicated listeners with 13% audience overlap between the two companies. It will make it easy for the advertisers and the brands to access the largest digital audio advertising marketplace.
“This partnership is a fantastic match between Pandora’s industry-leading ability to monetize digital audio and SoundCloud’s large audience and vibrant community of U.S. listeners,” said Roger Lynch, Chief Executive Officer, Pandora.
“Investments we’ve been making in our ad capabilities, including the recent acquisition of AdsWizz, further solidify Pandora’s commitment to help publishers monetize the rapidly growing digital audio market.”
The new agreement expands SoundCloud’s existing global relationship with AdsWizz and is part of Pandora’s broader strategy to help publishers monetize digital audio as well as other formats of inventory including video more effectively.