After achieving success in its podcasting efforts in 2019, Spotify Technology SA (NYSE:SPOT) is turning its ears to monetize the well known audio programming. Spotify is announcing at CES being held in Las Vegas, the streaming ad insertion (SAI) for the Spotify Podcast Ads. It is the first time that advertisers and podcasters can get access to key data that includes reach, frequency, actual ad impressions, device type, anonymized age, and gender through this innovative technology.
Podcasts delivery through RSS
In the earlier days, podcasts are delivered through RSS feeds. It makes the collection of this type of data difficult. Spotify made a shift to streaming technology to tap on reporting, planning, and measurement as is being done for streaming music.
SAI technology is available to original shows
Spotify’s SAI technology is only available to original and exclusive shows initially at the launch. It allows the company to implement the new technology easily and control the content. The listeners of podcasts are already accustomed to the ads often read by the hosts themselves. Therefore, the introduction of new streaming ads will not cause discomfort for the podcast listeners. Spotify is planning to provide improved ad experience to the listeners through data-driven and targeted ads, just like digital marketing.
Puma is the first adopter to try the SAI via running host-read ads during the original Spotify podcast. The company commands several exclusives and originals to leverage this innovative technology when the audience is listening to the podcasts. Its podcast streaming hours increased by 39% Quarter-on-Quarter in 2019. The company currently has more than 500,000 podcasts.
Previously, the advertisers are unaware of whether their ads are yielding desired results. Spotify is addressing this issue. It is helping the advertisers with measurement capability. The company’s new technology offers interactivity and provides targeted measurements. It is a big leap for the industry.
Competes with Google and Apple
The streaming ad insertion technology allows Spotify to compete with Google and Apple. With the growing popularity of Spotify, the podcast app market share of Apple is slipping. Spotify is expediting its work to make the shows revenue drivers.
Podcast listeners in the US are expected to reach 106 million by the year 2023. The ad revenues on podcasts would reach more than $1 billion by the year 2021.