Podcast Ads: Spotify tests targeted podcast advertising
Spotify unveiled a new ad technology at this year's Consumer Electronics Show in Las Vegas. Streaming Ad Insertion" (SAI) is intended to enable advertisers to precisely define their target groups.
Image: spotifyforbrands.com
Over the past year and a half, Spotify has steadily increased its involvement in the podcast sector. According to a statement, the streaming service now wants to make key data available to advertisers and podcast producers for the first time with SAI. Commercials will be selected accordingly depending on ad impressions, reach, frequency and user data, and integrated into the podcast in real time when listened to, as T3n.de writes.
To ensure data privacy, the streaming service provides advertisers with accurate, but only anonymized information about its users. Advertisers can thus benefit from even more personalized advertising and a more transparent process, which gives Spotify an advantage over other podcast apps.
According to a statement from Jay Richman, Head of Global Ads at Spotify, new targeting measurements and interactivity implemented in the new ad tool could be a big step forward for the entire industry. The ad format is said to be limited to the U.S. for the first time and will only be made available in podcasts distributed exclusively through Spotify, as the streaming service manages that content itself and can easily implement the technology there. Over time, however, the circle is to be expanded, including to external productions, provided the ad tool is successful.
According to Statista.com, the market leader in music streaming recorded around a quarter of a billion monthly active users in the third quarter of 2019, 113 million of whom have a premium account. With its new podcast technology, the Swedish streaming service aims to compete with companies such as Google and Apple.
