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Spotify prepares for revolution in podcast advertising

09.01.2020
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Spotify prepares for revolution in podcast advertising

In 2019, Spotify made great progress in achieving its goals in podcasting. Expanding the content library, the company bought Anchor to help its users in the process of creating podcasts.

At the center of Spotify’s 2020 podcast agenda will be placing ads on podcasts. To this end, the company has developed a system called ‚ÄúStreaming Ad Insertion, abbreviated as I SAI, and will provide both the podcast producers and advertisers with more detailed analysis data than they have ever encountered before.

Spotify’s data includes actual advertising impact, frequency, reach, and anonymized audience information. The audience will be provided with information such as age, gender, device type and listening habits.

Although the popularity of podcasts is increasing, the number of format unknowns is still high. Current analysis of podcasts may vary depending on the platform on which content is shared. However, this seems to change at least for certain content. Spotify plans to do this by smoothly placing previously recorded audio ads on content. For this purpose, the company’s voice, or one of the producers of podcasts who want to perform continuous company, the company will place these ads in line with the user’s listening habits.

Spotify will use the new system in its podcast content in the first place

However, this does not mean that there will be more ads while listening to podcasts on Spotify. Ads that will be served to users in the SAI system will replace ads previously placed in podcasts. Advertisements will also sound like a piece of normal content.

Spotify will not open the SAI system to everyone in the first place. The system will be used primarily on Spotify’s own podcasts.

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