There have been a number of articles and speeches recently where people are questioning Pandora’s self reported audience. Is it 8.06% or 4%? While I do believe we need third-party measurement, that already exists with Triton Digital’s Webcast Metrics. From the rumor mill I also understand Triton is going to be measuring individual markets which will include Pandora.
Why is audience measurement important? Audience measurement is used as a planning tool. It is especially useful where audience metrics are utilized to determine delivery of an advertising campaign. Pandora and Internet radio have not such problem. With Internet radio you know how many people heard your ad. It is not an estimate unlike terrestrial radio. This is perhaps why most agencies buying Internet radio are not as hot under the collar as terrestrial radio in attacking Pandora’s audience estimates.