This story was delivered to Insider Intelligence Digital Media Briefing subscribers earlier this morning.To check to see if you already have access to Insider Intelligence through your company, click here.Yesterday in a company blog post, Spotify introduced Spotify Podcast Ads, which leverage new proprietary technology to provide planning, reporting, and measurement capabilities to brands interested in podcasts.
Business Insider Intelligence
The new tech referred to as Streaming Ad Insertion (SAI) will enable podcast producers and advertisers to measure impressions as they occur and report on the anonymized age, gender, device type, and listening behavior of the audience reached.At launch, Spotify’s SAI tool will only be made available for its original and exclusive shows, likely because of the localized nature of this content makes it easier to measure and because Spotify does not need to negotiate with any third parties who may also produce these podcasts.Spotify’s new tech should help it monetize its growing base of podcast listeners and better compete for podcast talent as it furthers its push into podcast territory. The audio giant’s new tool should come as no surprise given Spotify’s aggressive moves to boost both podcast volume and discoverability across 2019.So far, those efforts look to be paying off: In its Q3 2019 earnings call, Spotify attributed the majority of its monthly active user growth to podcast listeners, which grew 30% year-over-year (YoY). And podcast engagement is rising on the platform too, as the total number of podcast hours streamed on Spotify jumped 39% between Q2 and in Q3 2019.And while Apple Podcasts still retains the lion’s share of the podcast market with approximately 63% of all US podcast listening, Spotify has grown rapidly to account for almost 10% of listenership in 2019, according to Libsyn analysis of App Annie data. With this new data, Spotify should be able to incentivize greater investment from advertisers in its podcast ecosystem, which in turn should offer higher returns for podcast producers when deciding between the different platforms.For advertisers, this data should boost confidence in ad delivery, improve targeting, and ease budgeting decisions in a market particularly receptive to ads. Podcast listeners are already an attractive audience for advertisers — 61% of US listeners report buying a product they heard about on a podcast ad, per a Midroll Media survey.But the biggest obstacle for advertisers has been the lack of information around the size and makeup of a given podcast’s audience. This creates uncertainty for brands, as it’s difficult to tell whether or not a given podcast actually reaches the audience a potential advertiser is interested in. The new data provided by SAI should rectify those concerns by enabling advertisers to make more directly informed decisions about which podcasts they should advertise on, albeit only on a limited crop of shows to start. Want to read more stories like this one? Here’s how to get access: Join thousands of top companies worldwide who trust Insider Intelligence for their competitive research needs.>>Inquire About Our Enterprise MembershipsExplore related topics in more depth.>>Visit Our Report StoreCurrent subscribers can log in to read the briefing here.