Pandora taps into digital audio advertising growth with AdsWizz deal
America’s largest music streaming service Pandora has paid $145 million for digital audio technology AdsWizz. AdsWizz offers an end-to-end technology platform that powers music platforms, podcasts and broadcasting groups, servicing customers such as radio networks, media companies as well as Spotify.
Pandora intends to leverage the deal to capitalise on the growth in digital audio advertising. AdsWizz enables customers to provide a more personalised ad insertion service based on user activity.
“With our scale in audio advertising and AdsWizz’s tech expertise, we will create the largest digital audio advertising ecosystem, better serving global publishers and advertisers – while improving Pandora’s own monetisation capabilities,” Roger Lynch, CEO of Pandora, said in a statement.
AdsWizz is now becoming a subsidiary of Pandora, which will support the growth of AdsWizz’s core business and invest in further technology development.
Audio technology seems to be the flavour of the moment, as Adobe also recently invested into voice by acquiring Sayspring, a startup whose technology lets its users design and build voice command apps. The Pandora deal is reflective of how music streaming, podcasts and digital radio is growing in popularity; digital audio advertising is growing 42% year-over-year, according to the Internet Advertising Bureau.
AdsWizz, which was founded in San Mateo in 2008, is among the more innovative players in this market. The company has developed a number of interesting features such as enabling users to shake their phones to trigger an action while listening to an ad. It is interesting to note that Pandora isn’t taking AdsWizz off the market for other companies to just use in-house, but that Pandora plans to keep promoting the technology. This move shows that Pandora might have bigger plans, as the company firmly establishes itself as an early mover in this fast-paced market segment.