As the audio streaming giant wants to increase the revenue it raises from advertising, it has launched its first global brand campaign aimed at opening a courtroom for 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’s also trying to attract more podcast publishers and creators to the advertising market, after saying earlier this year that limited inventory is hampering ad growth.
Jay Richman, Vice President of Spotify and Head of Global Advertising Business and Platform, said:
The campaign will take place in markets such as the United States, Canada, the United Kingdom, Australia, Spain and New Zealand using digital video, social media and audio advertising both inside and outside Spotify. Your ad will show people walking or floating in the bubbles, with the message “reach the most immersive audience.”
The company worked with creative agency FCB New York.
Cos. , During the campaign.
It takes effort as Spotify is ready to overtake
of Podcast Listenership.. Research firm eMarketer predicts that Spotify is moving at a pace of 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, U.S. advertising revenue from podcasts will increase 19% in 2020 to $ 842 million, surpassing $ 1 billion this year and reaching $ 2 billion by 2023. That is. 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 launched podcast makers Gimlet Media, Bill Simmons’ The Ringer, and more. Over $ 100 Million License Agreement With Joe Rogan.
Spotify has also begun to revamp its podcasting ads. Podcasting has measured viewers over the years through the number of times an episode has been downloaded. However, it does not indicate if someone actually heard the episode or if they skipped the ad.
Last year, Spotify started inserting ads via streaming. This allows us to more accurately track ad impressions, audience demographics, and other data. I bought a podcast advertising platform Megaphone. And earlier this year, we introduced the Spotify Audience Network. This allows advertisers to not only buy on the show, but also direct their ads to specific audiences on Spotify’s own content and elsewhere. It said it helped triple the inventory of podcasts that could be sold.
“”“Our goal is to actually start competing with Snap and Twitter to meet the expectations of advertisers, including small businesses.”“
Advertising accounted for 12% of Spotify’s revenue in the second quarter, up from 7% in the previous year. “Finally, there’s an ad-supported side, Become an important revenue driver For the company, “CEO Daniel Ek 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 seven-fold.
“Our goal is to really start competing with Snap.
Dawn Ostroff, Spotify’s premier content and advertising business officer, said:
Forrester Research Inc. Collin Colburn, a senior analyst at He said he was thinking more and more. ..
Eric Schmidt, a senior director analyst at a research firm, said one of the challenges of an audio advertising platform is to show the rewards for advertisers’ spending.
“When you can’t click something right away, or when you’re following up on an ad you hear from one media through another … it’s hard to connect dots measurable,” Schmidt said.
Spotify said it is a testing tool that allows consumers to directly access ad offers in the Spotify app, an attempt to make ad measurements more accurate. This allows marketers to more directly connect advertising costs to return on investment, ”Richman said.
Spotify bids to attract small businesses,
Schmidt said he could 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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Spotify Launches Campaign to Get More Advertisers
Source link Spotify Launches Campaign to Get More Advertisers