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Make way for the big boys.

"Companies like Google, Apple and Facebook are eyeing the streaming and on-demand music business now dominated by smaller niche companies such as Pandora and Spotify. When they do -- and most analysts agree it's really just a matter of time -- they could give nearly everyone the ability to listen to whatever they want, whenever they want -- and mostly for free," wrote San Jose Mercury News' Heather Somerville yesterday.

If true, this brings up a whole host of issues, some of which Somerville explores, like the impact on artists, consumers' relationship with music, and others. But where does it leave Internet radio: both pureplays like Pandora, and music broadcasters who'll rely more and more on digital efforts to grow? Smaller companies will have to become even more creative and agile to offer a value proposition the larger companies can't -- a sort of "boutique" existence, catering to niche and local audiences. 

"There is no doubt that when companies this large enter into the field, it will be disruptive," Jonathan Handel, a media and entertainment attorney, told the paper.

Read more here.

Various news sources (CNet was first) are reporting that Twitter is building a mobile streaming music application for Apple devices, also involving SoundCloud. The new Twitter music app would suggest music to users based on use data it gathers ("based on a user's follower graph -- artists they are following, and artists that other people they follow are following," says CNet), using tech from music discovery service We Are Hunted (which Twitter acquired). The app could be released on iOS by the end of this month.

Meanwhile, following Pandora's announcement of CEO Joseph Kennedy's imminent departure (reported in RAIN here), a Motley Fool blogger says there are rumors of web giants Facebook or Google buying Pandora, and writes that acquiring the Net radio leader could make sense for either company. 

"(Facebook) has... expanded its reach with a new search tool, news feed, gift offering and pay-for-post feature. It continues to try to find ways to keep users engaged and online longer. A tailored radio station would do just that," the post reads. "Meanwhile Google, is always on the prowl and constantly looking to one-up rivals Apple and Facebook. The search giant could tune into Pandora first for no other reason than to keep it from Apple and Facebook."

More on Twitter, Apple, and SoundCloud here; more on Pandora, Facebook, and Google here.

According to eMarketer, U.S. mobile ad spending is growing faster than previously expected.

The news source predicts overall mobile ad spending in the U.S. to top $4 billion this year (180% growth), $7.19 billion next year, and over $20 billion by 2016.

EMarketer says this year's unexpected growth is "due in large part to the success of so-called 'native' ad formats like Facebook's mobile newsfeed ads and Twitter's Promoted Products.

"These products represent a seamless experience across platforms for consumers—which means platform owners are able to successfully earn (or, in some cases, not lose) revenue as consumers continue to increase time spent on mobile devices with smaller screens unsuited to the bulk of desktop display advertising inventory."

Read more from eMarketer here.

Leading webcaster Pandora late yesterday announced the relaunch of its mobile apps for Apple's iPhone and iPod Touch (but reportedly not the iPad) and Google Android smartphones. The company says its "Pandora 4.0" is the most significant and comprehensive redesign of the applications since their first launch on the mobile platforms.

Undoubtedly, with the majority of Pandora's listening now coming from mobile devices, the company sees the need to both (a) offer mobile users the full functionality of the service, and (b) monetize mobile listening at a rate in line with web listening.

San Jose Mercury News tech blog SiliconValley.com describes the redesign as "essentially bringing the features of its website to users of its apps." The blog suggests Pandora's need to ramp up mobile advertising dollars was a main force behind the redesign.

For the launch Pandora has brought on four major advertisers as sponsors of "tips and information" inside the redesigned apps: McDonald's, Nike, Sony Pictures, and State Farm. SiliconValley.com reports that these sponsors will launch mobile ad campaigns to appear in the apps' new social features in the coming weeks.

Interestingly, TechCrunch characterizes the app redesign more as a "competitive" move, with a view of quickly "locking in" listeners as Spotify gains visibility in the U.S., and with a possible Apple entrance into the Internet radio market.

Over 75% of Pandora's 3.3 billion listening hours in the quarter ending July came from mobile -- nearly double the amount from a year earlier. Pandora says more than 115 million of its 175 million registered users have listened on a smartphone, and that "over 1 in 3 smartphone users in the U.S. have listened to Pandora in the past month." Pandora will further increase its mobile footprint next year when Microsoft makes the service available on the new Windows Phone 8, with one year of ad-free use.

Pandora's mobile ad revenues aren't dismal, by any means. Over half (55%) of its ad income now comes from mobile. "That worked out to $100 million in 2012, putting it second to Google in terms of mobile ads," writes TechCrunch. SiliconValley.com writes, "revenue from mobile ads was up 86% at $59 million in the last quarter."

But by enhancing the usability of the app, and increasing the value of interacting with it, it's clear that the value of any advertising that accompanies it is also increased.

App users will get access to many features of Pandora's website for the first time. Pandora's page described the new apps reveals they've simplified the navigation and controls for listeners.

A favorite on the web, dedicated artist pages, are now available via mobile. Listeners can now see their own personal music profile, with a detailed timeline of their listening (stations created, bookmarked tracks, ratings history), and they can share that profile via social media, or keep it private.

Taking a cue from the Facebook timeline, the "music activity feed" is now part of the app as well. Listeners can find and follow their friends and see what music they're enjoying, or explore similar listeners' play history. And the apps offer "instant sharing:" for the first time on mobile devices Pandora listeners can share links to their favorite stations and tracks on Facebook, Twitter, or among their Pandora friends.

The Pandora 4.0 app for iOS is available in Apple's AppStore now. The app for Android smartphones will be available from Google in the next few weeks.

See the new app enhancements here. Read CTO Tom Conrad's comments in the Pandora blog here. Pandora's press release is here. Read more from SiliconValley.com here and TechCrunch here. Read more on Pandora on Windows Phone 8 here.

Triton Digital Media VP Business Strategy, Applications & Services Division Jim Kerr moderated the "Social Radio" panel at last month's RAIN Summit Dallas. He spoke with four pros from the broadcast, online radio, and Internet services industries concerning how radio can best make use of social media tools, and take advantage of consumers' embrace of platforms like Facebook, Twitter, Tumblr, Pinterest and more.

In planning a mobile strategy, given the necessary committment of resources (engineers, social media professionals) Jelli founder/CEO Mike Dougherty advised focusing on the biggest and most important, which for his company (and the others agreed) were Facebook and Twitter. He also suggested being realistic about the impact. Integrating with Facebook's Open Graph enables Jelli users' sharing and participation, but "Facebook didn't spike our usage or traffic, but it did provide a 3-4% monthly increase. It's like interest on a bank account. That investment was really important for us."

Owen Grover (iHeartRadio SVP at the time, now Clear Channel Entertainment Enterprises SVP/Content Partnerships) agreed, and suggested using realistic expectations and logic to help decide where to "spend" your company's resources in social media. "We ask, 'Who are the listeners we're addressing here?'" Different genres attract different demos and lifestyles -- the same goes for social media platforms. "You're not going to get a ton of AC listeners on Tumblr blogs... However, you see an extraordinary use of social photo apps among urban radio listeners," he said. You need to consider "where your listeners expect you to be."

Pureplay webcaster Raditaz founder/CEO Tom Brophy suggested if you give a highly-engaged audience "the channels to interact with the social networks, they'll use them." His company's plan has been to "provide (social media) channels and tools, and be proactive and push some content" to these networks.

SoundCloud doesn't create content; rather, they provide the platform for others to promote content. To make that as easy and rewarding as possible, SoundCloud Head of Audio Manolo Espinosa explained his company's work to integrate in Facebook, Twitter, Pinterest, Flipboard, and more. "Our idea is to make it super simple, give you the right stats, and help you promote your content."

But how can this help increase radio listening?

Grover called Facebook and Twitter "extraordinarily powerful at getting the word out, generating excitement, and creating conversations that feed the larger on-air conversation." His example is Clear Channel talent Elvis Duran, who dedicates large segments of his show to what's trending on Twitter and Facebook. Social media platforms shouldn't simply be "places to deposit content," or even necessarily just "traffic referrals," he advised. "We think of them as an extension of conversation. People are surprised to hear me say I'm interested in driving on-air occasions, because I'm the digital guy, but we think of our platform as '360,' and integration is the 'magic sauce' that differentiates us."

SoundCloud's Espinosa brought up CNN's Radio's use of his platform, as well as New York air talent Zach Sang, who posts clips he thinks have "viral" potential -- which include him promoting that evening's show. This takes great advantage of the fact that in the online world, people want to share content they enjoy. "Giving people that content to share in a way that doesn't impact their workflow, that's where you want to be!" said Espinosa.

Dougherty added that Jelli stations have seen actual ratings increases follow a good shift in social strategy that increased online engagement.

Naturally, a good social media strategy needs to be mobile. Grover advised thinking about the "meaningful distinctions between the desktop experience on social, and the mobile experience on social." His example: the difference between the Facebook mobile app and the desktop version, "and you realize there's no such thing as a 'tab' on a Facebook mobile app, and therefore some of the branding or marketing or partner- or sponsor-driven stuff that you're doing you can't execute the same way. You have to think about these differences."

Check out audio from this panel below. Audio from all the RAIN Summit Dallas segments is here.

Inside Radio leads today with a collections of testimonials from program directors revealing how they use social media to track the popularity of new music.

Facebook and YouTube now offer PDs a window into how popular -- or burned -- a song is becoming (see, for instance this article from The New York Times). Lincoln Financial Media CHR KQKS/Denver music director Michael Buhrman says, "Social media has gone to the next level in the past few years as a tool for discovering new music, and helping determine whether a song is compatible with our audience."

Inside Radio adds, "But he and other programmers say it’s just one of many utensils in their toolkit, along with callout, music sales, online testing, requests and other traditional means."

"There is no telling who, what age, or what country (a new song's Facebook) likes and (YouTube) views are coming from," cautions KQMV and KLCK, Seattle PD Maynard. "I feel very confident in our systems of picking music and using the internet or social media as more of a tie breaker or an additional information source." Wilks Broadcasting EVP of programming Jeff Sanders adds, "If I see multiple success stories — You Tube views, iTunes sales, Facebook likes, Twitter followers — then we’ll pay attention."