Presentations

Measuring Consumer Sensitivity to Audio Advertising Load: A Field Experiment on Pandora Internet Radio

David Reiley, Principal Scientist, Pandora

In an era of ad-supported content provision, field experiments offer a crucial way to measure consumer sensitivity to advertising. David Reiley will present key insights and findings from a randomized experiment with almost 35 million Pandora listeners over 21 months. This duration allowed Pandora to determine the long-term effects of different levels of ad exposure. Among these: (1) the number of hours listened decreased linearly in number of ads per hour, resulting in a strikingly linear demand curve, and (2) increased ad load caused a significant increase in paid ad-free subscriptions to Pandora.

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