As the audio streaming giant seeks to increase advertising revenue, it has launched its first global brand campaign, which aims to open courtrooms to marketers.
The company has also changed the name of its advertising business from Spotify for Brands to Spotify Advertising to attract SMEs beyond the major brands it has traditionally focused on. It is trying to attract more podcast publishers and creators to the advertising market, after saying earlier this year that limited listings were hindering ad growth.
Jay Richman, Spotify’s Vice President and Head of Global Advertising Business and Platforms, said:
The campaign will take place in and outside Spotify using digital video, social media and audio advertising in markets such as the United States, Canada, the United Kingdom, Australia, Spain and New Zealand. Your ad will show people walking or swimming in bubbles, with the message “Reach the audience that can most influence you.”
The company is Interpublic Group of Cos. We collaborated with the creative agency FCB New York, which is part of the campaign.
It takes effort as Spotify prepares to overtake Apple Ltd.
With podcast listeners. Research firm eMarketer predicts that Spotify is growing at 28.2 million monthly podcast listeners by the end of 2021, surpassing Apple’s 28 million.
According to the Interactive Advertising Bureau, an industry group, US advertising revenue from podcasts will grow 19% to $842 million in 2020, surpassing $1 billion this year to reach $2 billion by 2023. i.e. According to Edison Research and Triton Digital, an estimated 116 million Americans, or 41% of the population over the age of 12, are now monthly podcast listeners, up from 37% in 2020.
Founded as a music streaming service, Spotify has recently become an audio company with big bets on podcasting and live audio, including a deal between podcast makers Gimlet Media and Bill Simmons’ The Ringer and a deal worth more than $100 million. License agreement is included. rebuilt. With which rogan.
Spotify has also started revamping its podcasting ads. Podcasting over the years has measured viewership through the number of times an episode is downloaded. However, it does not indicate that anyone has actually heard the episode or that they skipped the ad.
Last year, Spotify began putting ads through streaming. This allows us to more accurately track ad impressions, audience demographics and other data. I bought Megaphone, a podcast advertising platform. And earlier this year, we introduced the Spotify Audience Network. This allows advertisers to not only make purchases on the show, but to direct their ads to specific audiences on Spotify’s own content and elsewhere. It said it helped triple the list of podcasts that could be sold.
“”“Our goal is to really start competing with Snap and Twitter to meet the expectations of advertisers, including small businesses.”“
Advertising contributed 12% to Spotify’s revenue in the second quarter, up from 7% in the prior year. “We’re seeing an ad-supported aspect finally emerge and become a major revenue driver for the company,” CEO Daniel Eck said in July.
According to the company, advertising segment revenue for the quarter more than doubled year-over-year, and podcast advertising revenue more than tripled.
Don Ostroff, Spotify’s chief content and advertising business officer, said:
Forrester Research Inc. Colin Colburn, a senior analyst, said he was over-thinking. ..
One challenge for audio advertising platforms is to show rewards for advertisers’ spending, said Eric Schmidt, senior director and analyst at research firm Gartner. Ltd.
“When you can’t click something right away, or when you’re following on an ad you hear through from one media to another… it’s hard to connect the measurable points,” Schmidt said.
Spotify said it is a testing tool that allows consumers to directly access ad offerings in the Spotify app, an effort to make ad measurement more accurate. This allows marketers to more directly link advertising costs to return on investment,” Richman said.
Spotify bids to attract small businesses, an approach that has benefited companies like Facebook Ltd.,
Schmidt said he may face some obstacles.
“Mom and pop are using Facebook, so it’s getting harder and harder to crack because everyone is using Facebook,” he said.
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