And, they reminded me of a scene from a fun movie in the 1990’s, City Slickers and the “Pizza Guy” radio advertising scene.
[manager plays annoying Pizza Guy radio ad]
Manager: “So? So, it’s stupid. It’s annoying. It makes people change the station.”
Mitch: “I didn’t write it.”
Manager: “But you bought it, you put it on the air three times a night during drive time. People are having accidents.”
“It makes people change the station” is the key part of this scene. Advertising on a particular radio station is valued based on the number of people listening. In short:
Less people listening to your radio station = less you can charge for your ads = less revenue (since you have a limited window to run ads).
So the “Pizza Guy” annoying radio advertisement that makes people change the station means less revenue.
Pandora’s model is a little different, but not much. Listeners have a few options to cope with these ads:
- Turn-off Pandora
- Switch to another music streaming service such as Spotify or Apple Music
- Pay for a subscription to listen to Pandora ad-free
- Learn to ignore the ads
Only two of these are good for Pandora. And, like the City Slickers “Pizza Guy” advertisement, it’d be interesting to see if Pandora is losing enough listeners due to these ads that it will hurt their long-time revenue and sustainability of their company. My guess is these ads are doing damage.
It’s also interesting to look at this from Tide’s perspective. Do these annoying ads turn people off of their product? Or does it increase brand recall? Or is this a case of “any mention of our product is good” thinking? Perhaps people talking about it and blogging about it is just the thing they want.