Spotify, the renowned music streaming company, is set to launch its advertising marketplace for podcasts in five new markets, including India and Sweden. This strategic move is an extension of the Spotify Audience Network, introduced in 2021 and currently available in nine countries such as Germany and the United States. The Spotify Audience Network empowers podcast publishers and creators to monetize their content, aligning with Spotify’s focus on enhancing ad revenue from its extensive podcast library.
Having invested over a billion dollars to cultivate its podcast business, featuring 5 million titles and attracting 100 million podcast listeners, Spotify aims to capitalize on advertising opportunities within this format. Brian Berner, the global head of advertising sales at Spotify, highlighted the challenges faced by advertisers in targeting podcast audiences effectively and reaching them at scale. The Spotify Audience Network addresses these challenges by providing a solution for precise audience targeting. In the third quarter, the company reported a 16 percent increase in advertising revenue year-over-year, with podcast advertising revenue experiencing double-digit growth. This expansion signals Spotify’s commitment to leveraging its podcast platform for both creators and advertisers. Additionally, the move aligns with the company’s recent efforts to encourage users on the free plan in India to transition to paid subscriptions, marking a strategic shift in its revenue model.