Spotify Audience Network is the underlying advertising infrastructure that supports its ad-supported user base. The Spotify Audience Network was born as the result of the acquisitions of Anchor and Megaphone. By 2022, Spotify had 273 million ad-supported users.
Spotify Audience Network origin story
More than 10 years ago we founded Spotify to give consumers something they couldn’t get — music any time, anywhere, and at the right price. Along the way, we broke the grip piracy had on our industry and restored the growth of global music through paid on-demand streaming. I’m proud of what we’ve accomplished, but what I didn’t know when we launched to consumers in 2008 was that audio — not just music — would be the future of Spotify.
By 2019, it was clear that podcasting was becoming an opportunity as big as music.
And the list of original and exclusive podcasts on Spotify kept growing.
What was the turning point for Spotify’s Audience Network?
Spotify’s acquisitions to build its ad-machine
Those two pieces of the puzzle gave birth to the Spotify Audience Network.
Thus, the ad-supported machine is driven by two main elements:
- Streaming Ad Insertion (SAI).
- And our Spotify catalog of Original and Exclusive content (Spotify Studios, The Ringer, Gimlet, Parcast, etc.).
What is Spotify targeting with its Audience Network
Contrary to other ad formats, podcasting was left behind. In that respect, Spotify understood the key issues podcasting advertisers faced, such as:
– Inability to target audiences with precision at scale.
– Limited insight and understanding of ad delivery and efficacy.
– Barriers to entry (high CPMs, lack of self-service, etc.).
Thus, among the first features Spotify’s Audience Network enables were:
– Confirmed Ad Impressions.
– Audience-Based Buying [ALPHA].
– Streaming Insights.
– Native Ad Placements [BETA].
– Creative Performance.
– Third-Party Brand Lift Measurement.
Making it easy for advertisers to launch campaigns
With a simple-to-use platform, advertisers can easily target podcasting users on top of Spotify based on their interests:
Advertisers can target users based on various parameters.
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