“The problem we’re solving with Spotify podcast ads is really on the advertiser’s side - advertisers have no idea how their ads are working. Podcast hours streamed jumped up 39% quarter-over-quarter in Q3 2019, and Spotify now touts over 500,000 podcasts on its platform. Today, Spotify has hundreds of originals and exclusives where it can leverage this technology at a time when podcast listening on its platform is growing. SAI aims to improve the ad experience even more because the ads will be better-targeted and data-driven, like other modern-day digital marketing.Įarly adopter Puma was the first partner to try out SAI by running host-read ads during the Spotify Original podcast, “Jemele Hill is Unbothered.” The ads resulted in ad recall lift of over 180%, Spotify says.
Podcast listeners are already more engaged with advertising often because the ads included in a podcast are read by the host or hosts themselves, making them feel less like an unwelcome interruption and more like a form of influencer marketing. That’s because Spotify can control this content and knows what its backend looks like, making the new technology easier to implement. The shift to streaming changes that, as Spotify can tap into its suite of planning, reporting and measurement capabilities, as it does for streaming music.Īt launch, Spotify’s SAI technology will only be made available to its original and exclusive shows. In previous years, podcasts have been delivered by way of downloads from RSS feeds, which would make this sort of data collection difficult if not impossible. The technology makes key data - like actual ad impressions, frequency, reach, plus anonymized age, gender and device type - available to podcasters and advertisers for the first time. Today, at the Consumer Electronics Show in Las Vegas, Spotify is announcing Streaming Ad Insertion (SAI), its new, proprietary podcast ad technology for Spotify Podcast Ads.
2019 was a breakout year for Spotify’s podcasting efforts, and now the company is turning up the dial on its ability to monetize this popular form of audio programming.
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