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Pandora And Nestlé Waters Turn On Audience Targeting In Connected Home Devices

"Audio acts as a powerful tool to establish an emotional connection with audiences, and connected devices offer an even greater level of intimacy, particularly within the home where listeners are more receptive and their environment acts as a contextual trigger," says Pandora's Eric Hoppe.

Pandora is continuing to expand into Connected Intelligence on behalf of its advertisers as the music streaming service is working with Nestlé Waters to target audience segments via smart home devices.

The music streaming platform is currently integrated into over 2,000 devices such as the Amazon Echo, Google Home, and Sonos. Pandora’s Connected Home platform already has ten million users that, on average, spend more than three hours per day listening to the streaming music service. Active Pandora users from voice-activated devices increased 282 percent year-over-year, the company has said.

“We see targeting through connected-home devices as an opportunity for both brand building and a way to drive store visits,” says Eric Hoppe, Director of Product Management at Pandora. “Audio acts as a powerful tool to establish an emotional connection with audiences, and connected devices offer an even greater level of intimacy, particularly within the home where listeners are more receptive and their environment acts as a contextual trigger. Pandora on connected-devices can drive very specific results and actions through data and technology – advertisers can target more than 2,000 audience segments with the right message at the right time, based on brand objectives.”

In making its point that voice-activation the “new touch” in terms of describing the role of virtual assistants within connected devices when accessing digital content and commerce, Pandora’s 2018 Definitive Guide to Audio, the streaming music platform attempts to make the case that the latest shift to Connected Intelligence-based devices represents another leap past terrestrial radio.

In essence, the rise of voice-activated devices extract all kinds of data from the Knowledge Graph and therefore create even more personalized experiences for consumers.

Susan Panico, SVP, Strategic Solutions at Pandora, told GeoMarketing during last month’s Advertising Week NY, the message the company is delivering to advertisers is that it’s imperative to rethink their “sonic strategy” when it comes to streaming audio and voice-activation.

“Voice-activation is actually  one of the most exciting growth opportunities that we have as an organization,” Susan Panico, SVP, Strategic Solutions at Pandora, told GeoMarketing when asked about the company’s evolving Connected Intelligence strategy. “We’re in 2,000 connected devices, and just at the end of Q2, the voice activated devices we saw a 282 percent year over year growth. Listening on Pandora is up 250 percent on voice-activated devices, with connected home listening up 22 percent year-over-year.”

One point that Pandora has been working to make clear to brands and agencies is that voice-activated devices also opens up marketing to a demographic segment that’s often considered a distant second in importance to marketers.

“People to assume that connected devices are being used by young techies, and our research shows us that 25 percent of those are over 55,” Panico said. “You have more people listening in the home as opposed to on-the-go, and that creates  a huge opportunity for marketers. We saw that with 70 percent of those listeners, their use of music, audio, podcasting — pretty much anything to do with audio — has greatly increased. So the marketer implication really is, most marketers think about what their audio identity is.”

In making its push into Connected Home ad targeting with Nestlé Water, Pandora notes that users, on average, listen to 65 percent more music upon purchasing smart speakers. On top of that, these consumers are 1.5 times more likely to have a high household income of  roughly $150K-plus annually.

“According to Gartner, 75 percent of US households will have a smart speaker by the year 2020,” Pandora adds in its announcement. “As Artificial Intelligence becomes increasingly omnipresent, marketers must examine how connected home devices can strengthen their ability to reach consumers in a meaningful, effective way.”

About The Author
David Kaplan David Kaplan @davidakaplan

A New York City-based journalist for over 20 years, David Kaplan is managing editor of GeoMarketing.com. A former editor and reporter at AdExchanger, paidContent, Adweek and MediaPost.