Spotify is working on creating new models for monetizing podcasts, demonstrating its faith in the medium.
In a press event this week, the company announced it is developing a new audio advertising marketplace called Spotify Audience Network. Brands will now be able to buy media across Spotify’s ad-supported music as well as Spotify originals and exclusives, and podcasts via its two podcast platforms, Megaphone and Anchor. The company is still developing the new product, which will enable brands to “reach millions of listeners at scale both on and off Spotify.”
Spotify is also adding new capabilities to its Stream Ad Insertion (SAI) product. Launched in early 2020, Stream Ad Insertion creates a more personalised ad experience for podcasts, making podcast advertising targetable and measurable. Now advertisers will be able to utilise new features such as audience-based buying, native ad placements, and reporting on creative performance. The technology will be available to podcasters on Megaphone and Anchor.
Finally, in an effort to make their tools accessible to small business advertisers, Spotify will begin beta testing self-service podcast ad buying on Spotify Ad Studio.
On the content side, Spotify is continuing its calculated investments. The company, which currently has the exclusive distribution rights to Joe Rogan’s popular podcast, is working on new podcasts with Anthony and Joe Russo, Ava DuVernay, and Barack Obama and Bruce Springsteen, as co-hosts.
Podcast ad spending is projected to exceed $1 billion in the U.S. alone in 2021. After Spotify’s announcements, it looks like that is only the beginning.
Featured image: Spotify
