Spotify exits AdsWizz platform
Pandora’s (P) programmatic audio advertising solution is now generally available following a limited-time trial with a limited number of marketers. Rolling out programmatic audio ads is another step that Pandora has taken to meet the evolving needs of markets. The company already offered programmatic display and video ads, so the addition of audio expands its programmatic ads solutions.
Pandora launched programmatic audio ads in February, drawing interest from about two dozen brands, including Procter & Gamble and Sony Pictures. Pandora’s programmatic audio solution leverages the technology the company acquired through its purchase of AdsWizz. Spotify (SPOT) decided to end its relationship with AdsWizz after the startup was sold to Pandora.
Advertising revenues fell 2.6%
Pandora’s advertising business has been under pressure in recent years, and the company is banking on its acquisition of AdsWizz to turn around its advertising program. Its advertising revenues fell 2.6% YoY (year-over-year) to $271.1 million in the second quarter. That contrasted with 20% YoY increase in advertising revenues at Spotify in that period.
Results topped expectations
Despite continued weakness in its advertising business, Pandora still reported second-quarter results that topped the consensus estimate. It reported adjusted EPS of -$0.15 on revenues of $384.8 million. Wall Street expected EPS of -$0.16 on revenues of $372.8 million. Pandora’s revenues climbed 2.1% YoY in the second quarter.