9:05 PM
Dallas Media
Chief Executive Officer Joe Kennedy says Pandora is experiencing a boom in mobile demand but advertisers aren't sponsoring the added space.
(Bloomberg) — Pandora Media Inc. Chief Executive Officer Joe Kennedy said the streaming-radio service isn’t finding enough advertisers to buy all the space created by mobile-phone users, underscoring concerns about its ability to convert popularity into revenue.
“As advertising demand on the Internet keeps surging and the logical ad demand for the explosive mobile-device universe also dramatically increases, the supply-demand equation should consequently shift, long term in Pandora’s favor,” Boyle said in an e-mail. He has a “hold” rating on shares of Pandora.
Much of the growth from mobile advertising will come from small businesses looking to reach prospective customers when they’re nearby, said Rich Greenfield, an analyst at BTIG LLC in New York. Pandora has more experience selling ads to bigger brands and may not be equipped to reach those smaller, local businesses, he said.“They don’t have a sales force to sell local ads the way your local radio station does,” said Greenfield, who recommends selling the stock. “We think it’s one of the biggest problems of the story.”
1 comments:
I would agree with Joe's findings i think there has been a rally slow up take by advertisers to mobile ads. This is very worrying for me. I hope that with in a couple of years this should stop been a issue.
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