Spotify is finally delivering on the promise of podcast-based advertising, announcing the launch of the Spotify Audience Network at its StreamOn event on Monday.
The Spotify Audience Network is a podcast advertising marketplace that lets advertisers buy inventory across original, exclusive and independent podcasts both on and off Spotify. Inventory includes Spotify’s owned content as well as podcasts via Spotify-owned publisher platforms Megaphone and Anchor.
In a blog post, Spotify describes the moves as “creating a path for creators to earn more for their work,” while giving “advertisers the ability to reach our audience of hundreds of millions of listeners—at scale.”
Streaming audio is hugely popular. According to eMarketer research, in the U.S., mobile time spent listening to digital audio content now outpaces time on social media, video and gaming.
Podcasts have been core to that growth, with listening actually increasing amid the pandemic. The intimate nature of podcasts, combined with less ad clutter and a dedicated, loyal audience, makes them an attractive medium for brands.
From the launch of Streaming Ad Insertion to the expansion of its self-serve Ad Studio, to the acquisition of Megaphone, over the last year, Spotify has made key moves to build out its advertising capabilities to the benefit of both publishers and advertisers.
The debut of the Spotify Audience Network will build on that drumbeat, giving podcast creators and advertisers more tools to monetize and buy inventory.
Still, the network is forthcoming and won’t be immediately available. “We are in the early stages of developing this offering and look forward to sharing more in the coming months,” according to the company’s blog post.
In addition to the launch of its audience network, Spotify also shared two additional ad product, podcast-focused updates.
The company says that it will enhance its Streaming Ad Insertion capabilities by “unlocking more product features, like audience-based buying, native ad placements, and reporting on creative performance.” They also said they plan to make SAI available to Megaphone podcast publishers and top Anchor creators.
Finally, Spotify said it would begin U.S. beta testing of podcast ad buying on its self-serve platform, Spotify Ad Studio.
According to the company, Ad Studio is Spotify’s fastest-growing ad channel and is used in over 22 markets, offering audio and video inventory. Podcast content will now be in the mix, with Originals & Exclusives available in the immediate-term and third-party inventory to follow.
