Photo: AP Images
UPDATE: Millennial Media just let us know that Pandora was citing old data (from eMarketer) when discussing who is second to Google in mobile ad revenues.Upon going public, Millennial Media reported $103.7 million in mobile ad revenues for 2011, not the $90.9 million. This would make them number two. Pandora said it made $100 million plus.
But Pandora isn’t backing down. In an email to Business Insider, the company wrote:
“On our Q4 year-end call we stated more than $100M+ can from mobile, and given MM’s stated $103, we are more than confident we are still second only to GOOG last year.”
EARLIER (June 14): Mobile advertising spending just hasn’t caught up to mobile traffic, Brian Colbert, the VP of Mobile Advertising Sales at Pandora, said at Business Insider’s Mobile Advertising Conference Thursday.
Nonetheless, Pandora’s ad revenue was second only to Google in 2011, according to Colbert, citing data from eMarketer. The music company got $100 million plus in U.S. mobile ad spending. (Google took in $750 million). This makes Pandora bigger than Apple iAd ($92.4 million) and Millennial Media ($90.9 million).
But Colbert said, “mobile budgets aren’t big enough.”
While 88 per cent of Pandora’s listening hours came from desktop use in Q1 of 2010, by 2012, users spend 70 per cent of their time on Pandora listening on their mobile devices. That’s a pretty substantial shift.
But even though most of the traffic comes from mobile, Colbert said that advertisers’ mobile ad budget is “not proportional, and that’s where the rubber meets the road.” In fact, only half of Pandora’s revenue comes from mobile.
Why aren’t the buys as big?
“There’s still trepidation,” Colbert said. “Tracking and reporting isn’t where it should be.”
While Pandora’s desktop use peaks while users are at work, from 9am to 6pm. mobile rules when on the go and at home (from 7-9am and 6-11pm).
“We are going to see this seismic shift from desktops to mobile,” Colbert said.
The question is when advertisers will catch up.
Here’s Pandora’s breakdown of mobile ad spend in 2011:
- Google: $750 million
- Pandora: $100 million
- Apple $92.4 million
- Millennial: $90.9 million
- Other: $517.4 million
Photo: Pandora, eMarketer
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