Faced with increasing broadcast fees and limited success with visual ads, Pandora, the streaming radio service that grew out of the Music Genome project, has begun including in-stream advertisements as a way to raise revenue. Pandora previously experimented with in-stream ads, but scrapped the idea due to negative feedback. Now, however, it would appear that Pandora is feeling the pinch (the company also recently laid off staff) enough to give the ads another try, despite the initial negative reaction.
The new ads, which Pandora acknowledged last night via its Twitter account, began running yesterday when users reported hearing an short, 15-second ad for the Fox TV show Lie To Me. The initial ad showed up after listening to about 10 songs. For many the ad ran again about 20 songs later and then went away.
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