This is similar to the approach Facebook ( META 6.14%) has taken recently. Instead, management's focus is on increasing the value of their advertisements through targeting. Now, Pandora's management doesn't expect that they'll need to increase its ad load in the short term because of the capacity that bump afforded the platform. In this way, it increased its mobile ad revenue per thousand listener hours, or RPM, 6% over the previous quarter. But for music? The value of getting new recommendations from friends whose musical taste I trust outweighs any embarrassment I might feel from broadcasting my affection for, say, Rush and Faith No More.Pandora Media ( P) quietly increased the number of advertisements it runs from four ads to six ads in conjunction with the end of its 40-hour listening limit for non-subscribers. As users select songs they like, this data will be collected by Facebook and shared with Pandora, so even if you've never logged into Pandora, it will immediately begin playing music it thinks you like, based on your activities around the Web-not just your listening habits on Pandora.Ī brief word about privacy, because I know that it'll come up: Yes, the privacy implications could be alarming, especially when this kind of integration is applied to other types of services. (If I want to do that, I can still hit the "share" button on the Pandora radio player.) More importantly, Pandora now uses the social network I've already built and that I most frequently use-I don't have to go through the hassle of trying to create a new one from scratch, as Microsoft's Zune social system asked me to do.Įven cooler: music sites, such as record labels or band sites, will be able to place a new type of Facebook "like" button next to songs on their sites. First, unlike the case with notification music apps like Serenade and Cardinal, I'm not posting to my profile or spamming my Facebook friends every time I change stations or hear a new song. This is far better than other efforts to capture the social nature of music listening and recommendations. You can see what they've been listening to on Pandora recently, and click on embedded links to import their stations into your own Pandora player. Enter your Facebook username and password, and suddenly, all your Facebook friends will be imported into the Pandora app. Today, if you go to Pandora and select "Friends' Music," it will ask if you want to connect your Pandora and Facebook profiles. (Some portions of this image have been obscured for privacy reasons.)Ī good example of how this could play out can be found in a partnership with Pandora, the popular personalized radio service. See what your Facebook friends have been listening to on Pandora. (Robert Scoble has a good roundup of the implications.) I'll leave the details to others-this is a music-focused blog, after all-but I think that Facebook's leaders have positioned it as the infrastructure provider of the emerging social Web and potentially as the first Internet company to challenge Google's dominance in online advertising.īasically, now that everybody (400 million users) is on Facebook, the company is trying to extend itself to the rest of the Web, allowing you to broadcast your likes and dislikes from other sites back to your Facebook friends, and allowing your Facebook social graph to extend beyond the confines of the site. Facebook made several important announcements on Wednesday.
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