Pandora welcomes online advertisers

Those who are at work listening to music on Pandora, a popular personalized radio that allows users to play music they love, often have their stream of songs interrupted by an ad, encouraging them to visit advertisers' websites to purchase their products or services.

While this can be a nuisance for those who are listening to their favorite tunes, Pandora is making money from the small business advertising, with clients that wish to expand their business and reach audiences beyond their their loyal customers.

John Trimble, Pandora's chief revenue officer, recently announced that the company is interested in building an ad exchange similar to the one Facebook recently constructed.

"I would say the exchange opportunity is always being strategically analyzed," Trimble said to AdExchanger. "We have to ask ourselves, 'How do you create an exchange from a premium position?' To be able to leverage targeting, our reach and potentially different ad formats that we have the ability to deliver across those multiple platforms is why we’re [interested] in considering the concept of building a private exchange."

Trimble added that the company likes the idea of the ad exchange, which would include the right partners, and is interested in seeing how a private exchange can translate into a mobile environment.

Pandora recently announced that its second quarter fiscal 2013 financial results will be released on August 29 after the close of the market. The leading internet radio service company is also planning to host a conference call at 2 p.m. to discuss the financial results. The company previously held 71 percent of the internet market and has reported an increase in listener hours, which were boosted 110 percent in fiscal 2012.