In a deal that will eventually boost the revenue streams of SiriusXM Satellite Radio, SoundCloud has partnered with Pandora as its exclusive U.S. advertising and sales representation.
Launching in 2019, the agreement will enable advertisers and brands to purchase SoundCloud’s U.S. ad inventory directly through Pandora, leveraging the company’s direct sales capabilities, targeting data, and its recently launched audio programmatic product.
Digital audio advertising grew 40% in 2017 to $1.6 billion, the IAB notes, and is becoming an increasingly important medium to reach consumers, thanks to the proliferation 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. This, the companies note, makes it easier for advertisers and 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 of 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.