Spotify Looks to Monetize Podcasts With New ‘Streaming Ad Insertion’ Tech

Spotify Streaming Ad Insertion
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Spotify Streaming Ad Insertion
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Photo Credit: Spotify

The Consumer Electronics Show in Las Vegas is a platform where tech companies from around the world showcase their latest innovations and products. At the event, Spotify announced its new ad-tech to monetize podcasts, which is called Streaming Ad Insertion (SAI) technology. This new ad tech is expected to revolutionize the way people interact with podcasts.

Podcasts are traditionally delivered via download through an RSS feed. However, data collection is difficult-to-impossible to achieve using this method. Alternatively, streaming podcasts like music makes data collection much more accessible. SAI technology will help further monetize podcasts available on Spotify’s platform. The technology will allow podcasters and advertisers to micro-target their ads to specific audiences, and gather data on ad impressions, frequency, reach, and age, gender, and device type info.

The new ad tech fundamentally changes the way people interact with podcasts. The idea is to completely do away with baked-in ads for podcast recordings and use Spotify’s new Streaming Ad Insertion tech instead. For now, SAI technology is only available to Spotify’s original and exclusive shows. The content is controlled by Spotify, which makes it easier to implement the new ad tech.

People who listen to podcasts tend to be more engaged with the advertising that happens. The host of the show tends to read a snippet from a sponsor, making the ad feel personalized. Spotify wants to capitalize on that feeling while still incorporating data-driven digital marketing principles.

Spotify says early tests of the new ad-tech look promising. Shoe company Puma is the first partner to try SAI with host-read ads during a Spotify Original podcast. Spotify says that the experiment resulted in an ad recall lift of over 180%. Spotify hopes that making advertising more attractive on its platform will continue to help podcasts grow. Apple Podcasts is still the most popular podcast app according to market share. But Spotify has slowly made gains over 2019 with its massive investment in podcasts.

The new ad tech will help advertisers better understand the value of podcasts. “It introduces new targeting measurements and interactivity, which is a big change for the industry,” Jay Richman said. He’s the Head of Global Advertising Business & Platform for Spotify. The data collected can help podcasters and advertisers micro-target their ads to specific audiences.

Spotify is positioning itself as a major player in the podcast industry. The company has made significant investments in podcasting over the past year, including the acquisition of Gimlet Media and Anchor. Spotify’s goal is to be the number one destination for podcast listeners and to become the go-to platform for podcast creators.

The introduction of SAI technology is a significant step towards achieving that goal. By making advertising more attractive and easier to monetize, Spotify hopes to attract more podcast creators to its platform. The company is also hoping to attract more advertisers to the platform by offering better targeting and measurement capabilities.

In conclusion, the introduction of Spotify’s Streaming Ad Insertion (SAI) technology is a significant development for the podcast industry. The technology will help podcasters and advertisers better understand the value of podcasts and micro-target their ads to specific audiences. The data collected will help podcasters and advertisers create more engaging and personalized content, and make advertising more attractive and easier to monetize. Spotify’s massive investment in podcasting, combined with the introduction of SAI technology, positions the company as a major player in the podcast industry.