Podcast streaming

Spotify launches podcast streaming ad insertion and measurement

Spotify hopes to change the game of podcast advertising – which is largely stuck in the static past.

The music and audio streaming company announced the launch of Streaming Ad Insertion (SAI), a new proprietary podcast advertising system that will allow advertisers to purchase targeted spots that are inserted into podcasts when they are broadcast to listeners. With the new system, Spotify promises to provide a wealth of data on ad performance.

While podcasting is a digital medium, the industry has tracked audiences based on downloads. It has been the centerpiece of the podcasting field for over a decade. But that does mean that the ads need to be hard-coded into the podcasts themselves, and similarly, measuring reach and audience engagement in this paradigm isn’t as accurate as it is. targeted advertising on websites and social networks.

Spotify’s Streaming Ad Insertion System (SAI) provides the company’s suite of planning, reporting and measurement capabilities for Spotify’s original and exclusive podcasts. This includes data such as actual ad impression, frequency (number of times a listener has heard the ad), reach, and anonymized audience analysis (age, gender, device type). According to Spotify, this is the first time that this kind of data has been made available to advertisers and podcast makers.

The company said footwear brand Puma was one of the first advertisers to test SAI. Puma ran host read ads that were dynamically inserted into Spotify’s original podcast “Jemele Hill Is Unbothered” and with improved targeting, the ads resulted in an increase in ad recall by 180%.

“With this technology, we deliver the privacy, quality and effectiveness of traditional podcast advertising with the precision and transparency of modern digital marketing,” Spotify said in a statement. “In short, we keep what podcast listeners, creators and advertisers love about podcast ads and make the medium accessible to digital advertisers. “

Spotify has invested heavily in podcasting, including its acquisitions of Gimlet Media, Parcast and Anchor last year. The company says podcast consumption increased 39% between the second quarter of 2019 and the third quarter of last year.

In 2019, about 90 million U.S. consumers listened to podcasts each month, up 23% from 73 million last year, according to Edison Research and Triton Digital. And as listening increases, ad revenue is expected to follow: In the United States, podcast ad revenue is expected to grow from $ 479 million in 2018 to over $ 1 billion in 2021, according to the forecast. ‘IAB and PwC.

Separately, Spotify said last month that it will suspend the sale of political ads in 2020, citing the need for better means of verifying the content of those ads.


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