Spotify is investing hundreds of millions of dollars in podcasts in 2019, and now that bet must show investors that it was worth it. Let’s go deep and understand “How Spotify Plans To Monetize Podcasts”.
It also acquired Joe Rogan’s podcast, which is a cult favorite with – for – followers, is worth an estimated $100 million alone, and regularly tops the podcast charts. Since then, it has signed deals with Fox News, Fox Business, NPR, and the New York Times, and expanded its podcast library with new shows like “The Daily Show with Bill Maher” and “America’s Next Top Model.”
Now it must show that the investment has paid off, and analysts say Spotify’s new approach to advertising will help. Now that all the pieces are in place to monetize podcasts scalably, just going to blow away the dollars that go into podcasts.
According to a forecast by eMarketer, advertising spending on podcasts is expected to exceed $1 billion by 2021. Spotify has new tools that will help advertisers learn more from the podcasts, which could help it generate much more advertising revenue in the coming years.
Spotifys streaming ad insertion tool, launched earlier this year, will insert audio ads into podcast streams on its platform, enabling more targeting and measurement. Traditionally, it is difficult to measure the return on investment in podcast advertising. A podcast may know how many listeners have downloaded a program, but they do not always know whether someone has been listening for a long time or whether they have listened to an advertisement.
This information is valuable to advertisers, but for now, the tool is only used for Spotify’s original and exclusive podcasts. Advertisers can use it to see, for example, whether people actually hear the ad or not.
The deal gives advertisers more leeway over who they can reach and allows podcast publishers to make money from their shows. Megaphone offers the technology for both podcast publishers and advertisers looking for a podcast slot. It opens up the possibility of opening up podcasts to publishers and opening up new opportunities for their advertisers.
According to a recent report by the Pew Research Center’s Digital Media Research Group, this type of investment in advertising technology will continue in the coming years.
Studies show that the market will see more investment in technology to better monetize podcasting in a variety of markets, not just the US, but also Europe, Asia, Africa, Latin America, the Middle East, and the Asia Pacific, as well as monetized advertising. It will be crucial that Spotify can make money from other third-party shows. The real magic would be to use this truly unique scale to pump more ad money into podcasts than it ever did as a medium. As ads are added to streams and podcasts become more popular, advertisers will be increasingly interested in them. It will be interesting for us when we monetize our own podcasts, but I think what will be crucial is that Spotify makes money from these other, third-party shows.
The profit announcement comes as Spotify continues to make significant investments in its podcast business and other businesses. This quarter, the company hired some of the biggest names in podcast companies, including the likes of Andrew Lloyd Webber, Prince Charles, and Bill Maher. Spotify has also invested heavily in podcasts, recently trialing audiobooks and experimenting with celebrity readings.
Find more statistics at Statista
Find more statistics at Statista
Find more statistics at Statista
Spotify argues that its investment in podcasts, in particular, represents the company’s efforts to reduce its dependence on licensing music from labels, and reiterated its belief in today’s profit – the stake. Spotify said that 25 percent of its users were engaged in podcast content this quarter. More than 2.2 million podcasts were offered in the quarter, while podcast consumption increased by almost 100 percent compared to the same period last year.
Spotify was exploring the possibility of a subscription podcast service to tap into another source of revenue. The earnings report won’t be Spotify’s last big announcement this month, but it’s certainly not the end of the line.
Spotify will launch its service in more than 100 new languages and offer 36 new languages on the platform.
The extension includes the addition of more than 100 new languages and the introduction of new features such as support for new music formats and new formats.
The company says it will work closely with local developers and partners in each market to provide tailored experiences that meet the needs of their users in their local market. The move represents an important step for companies to build a global platform to connect content creators and listeners. Together, these markets comprise more than half a billion people, and Spotify said at the launch: “Sound and story, which once remained local, have the potential to profoundly impact the lives of millions of people around the world and the music industry as a whole.
Existing rich music and culture in these markets will now be able to reach Spotify’s global audience. In addition, expansion is aimed at accelerating the growth of other genres that have earned a place on the global music scene.
This will help artists take their careers to new heights and turn their passion into a profession, “the company said in a statement. By working with local creators and partners, Spotify plans to expand its music offerings in every region.
Initially, free and premium rates will be available in all markets, but Spotify will also offer its entire global catalog in new markets. It is available in both retail and family markets (which Spotify did not specify).
The company added that it will continue to work with local rights holders and partners to expand its catalog to include additional local offerings worldwide, including in the US, Canada, Australia, New Zealand, South Africa, and the Middle East and Africa.
Spotify has created an indispensable flywheel of creators and listeners that forms the basis of their business, and it is ultimately what will drive the audio industry forward.
This expansion will take the streaming giant to 178 markets worldwide, and Spotify currently operates its ad-supported premium products in 93 markets, where 93% of the market is used.
Asian markets, which account for the majority of Spotify’s 1.2% global market share, are the second largest market in the world after the US and the third largest in Europe.
The Caribbean and Latin America are the second and third largest markets respectively, after the US and the UK. Georgia and San Marino are in Europe and Oceania are complemented by the list. This expansion news has decided to launch Spotify HiFi in select global markets and launch a new Discovery Mode tool in beta.
From all above discussion now it is clear that how spotify plans to monetize podcasts.