This week marks the beginning of an official partnership between two major music companies: SoundCloud and Pandora. The two streaming services are now exclusive partners for US advertising and sales representation.
Beginning in Quarter 1 of 2019, advertisers and other brands interested in buying SoundCloud’s ad inventory will have the ability to purchase directly through Pandora. The two companies now have a merged advertising audience of 100 million users across both platforms, which currently marks the largest digital audio advertisement marketplace in the US. This means any brand or company attempting to reach listeners through advertising should now be targeting SoundCloud and Pandora to generate the most results for themselves.
The ad sales partnership between SoundCloud and Pandora is a great move for both companies, as they will each experience their own individual benefits and growth. This new agreement will consequently expand SoundCloud’s relationship with AdsWizz - a digital audio advertising provider - which already has an existing partnership with Pandora. Additionally SoundCloud now has direct access to Pandora’s well-performing sales team. Pandora on the other side will now have an overall improvement in leverage with sales abilities, targeting data, and audio programmatic products after partnering with SoundCloud. The streaming company also has a large and diverse audience of listeners that Pandora will no doubt be able to utilize. This agreement looks like the beginning to a great partnership between two major streaming platforms, now with another competitive edge over other music services.