Podcast company

Spotify spends $ 235 million on podcast company Megaphone

Spotify’s latest acquisition won’t bring more podcasts to their platform, but will see them integrate with Megaphone’s platform instead.

Spotify’s roots may lie in dedicated music streaming, but in recent years their exploration of podcasts has seen a new focus for the team. They’ve built a huge library of podcasts available to all of their users and even opened them up to those who don’t use their apps.

Spotify is now making another big podcast acquisition in Megaphone, according to a source close to both companies. Megaphone’s platform hosts podcasts and as such is already home to all of Spotify’s shows. Instead of sharing content, the deal will add Spotify’s advertising structures to the platform.

Spotify’s Steaming Ad Insertion technology is capable of delivering real-time understanding-based ads. It bases the placement of ads on each user’s tastes, viewing habits and relationships with advertisers. Megaphone will now have Spotify’s smart ads inserted into listeners’ feeds.

This puts Spotify in a unique position to make money from a popular platform separate from their own. For advertisers, this provides an attractive opportunity to control their advertising campaigns and uniquely target specific customers on a platform outside of Spotify.

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