• by Alex Weprin , October 4, 2018

The streaming music service Pandora will become the exclusive U.S. ad sales partner for the open audio-sharing platform SoundCloud beginning in 2019, the companies say.

The deal will allow advertisers to buy inventory on SoundCloud directly through Pandora, including its recently launched programmatic audio product.

The two companies combined reach a U.S. audio advertising audience of more than 100 million people, Pandora says, making it the largest audio marketplace in the country.

The companies say they have only a 13% listener audience overlap between their platforms, meaning that there is little duplication.

Digital audio advertising remains a nascent business when compared to radio and digital video. The IAB estimates it hit $1.6 billion in 2017 -- a 40% increase compared to 2016. That number is only expected to rise.

SoundCloud has an advertising relationship with AdsWizz, which was acquired by Pandora earlier this year. The new agreement builds off existing partnership.

Pandora is in the process of being acquired. Last month, the company announced it would be acquired by SiriusXM in a deal valued at $3.5 billion.