World news – Spotify Launches Industry Step Change Podcast Ads In The UK


Rak Patel, UK and EMEA Sales Director, signals the critical moment for podcast advertising that Spotify is relying on to drive ad revenue.

Spotify has podcast ads in the UK and Germany started a global rollout in which the streaming giant relies on podcasts to drive growth in advertising revenue.

The ad inventory is based on the SAI (Streaming Ad Insertion) technology developed by Spotify and reports confirmed ad impressions instead of podcasts Downloads as well as coverage and frequency. The company says this will allow advertisers to make even more data-driven decisions for their podcast campaigns. Advertisers can buy Spotify podcast ads title by title and pre-roll, midroll, or postroll within episodes of the show -Work creatively across ad placements. Spotify also offers a service that allows advertisers to offer select podcast hosts and a network of professional language talent to aid the creative process.

Rak Patel, Spotify’s UK and EMEA Sales Director, told Campaign says this is a “step change” for the podcast industry to offer brand metrics beyond episode downloading.

“It’s critical that we can give a marketer the kind of insights and data they can get from a digital one Marketing campaign would get: impressions, audience insights, frequency, all the things that are the nuts and bolts of a marketer’s every digital activity, « said Patel.

 » We’re trying to bring in: Here are the numbers in terms of who is listening. The real gist is giving a marketer that insight so they can then start mixing their media, understanding the performance, and seeing how it works with everything else they do. “

The ads can only be purchased in podcasts that Spotify creates itself. The company did not specify which targeting options Maketer could use, based for example on the data collected about users.

The Swedish company has been on a shopping spree for the past few years to sell its podcast content suite and ad Improving tech tools that Patel says should enable marketers to effectively reach customers across many smaller, long-tail podcasts shows.

Spotify bought ad tech company Megaphone in October for $ 235 million. USD (£ 171 million). Megaphone had developed hosting, distribution and ad insertion tools for podcast publishers such as ESPN and The Wall Street Journal.

In 2019, Spotify bought the podcast networks Gimlet and Anchor, and last year it was also for big-ticket shows from Joe Rogan, Michelle Obama, and Kim Kardashian there.

Patel pointed to Anchor as a Spotify way to serve a flurry of smaller, long-tail shows, while megaphones allow its SAI technology to be deployed on a large scale.

He said: “With Anchor, everyone can broadcast any type of podcast to our platform and other platforms as well. We can do this targeting feature, which means we can go vertically into the demographics that will be important to a brand … With megaphones, we can also use the SAI for a much larger reach scheme for actual podcasts. “

BT Sport is the first advertiser to take advantage of the new offer in the UK, posting ads for the Joe Rogan Experience this week. Spotify bought the exclusive rights to house Joe Rogan last year for a reported $ 100 million (£ 73 million), despite the company refusing to confirm that number.

As podcast listening continued to grow Has reached an estimated 15.6 million listeners in the UK last year, the media’s main players have developed more sophisticated options for buying ads based on technology. Acast, the world’s largest podcast company, launched personalized advertising and programmatic purchases last year.

Advertising makes up a small fraction – about 7% – of Spotify’s total revenue, but sees podcasts as a key vehicle to that line of business During its third quarter earnings call, the company said that 22% of its average monthly users were podcasting for the past three months, while podcast ad revenue nearly doubled year over year.

« Having the ear is something Daniel [Ek, Spotify founder and CEO] has been talking about for a long time, » said Patel.

« Podcasts play such an important role in expanding our audio -Attractivity, and podcasts were high on our deck board. It’s one of our biggest bets. « 

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