The service also faces a number of challenges. As competitors like Apple, Google and Spotify nip at its heels, Pandora may be running out of new users.
Pandora, which has 250 million registered users over the age of 13, is acutely aware of the importance of driving new users.
“There are about 270 million people over the age of 13 in the US,” said Pandora CMO Simon Fleming-Wood at Forrester’s Forum for Marketing Leaders earlier this month. “So the marketing challenge for Pandora is how do we grow our share of people listening (to music)? How do we get them more engaged, more often?”
In an effort to drive further engagement, Pandora is increasingly focused on cross-device listening features and automotive advertising.
In January, Pandora launched an automotive ad solution that is designed to let advertisers reach car-bound audiences through 15- and 30-second audio spots that run across vehicle models that integrate into Pandora. Consumers are more accustomed to a higher ad load in cars than they are to ads on mobile devices, McAndrews said, which gives Pandora “a lot of opportunities through targeting, paid listening and subscriptions.”
McAndrews did not discuss Pandora’s strategy for enhancing its offerings for hand-held devices or connected TVs, except to note that the company is consistently trying to further improve its playlist technology across devices.