Targeted advertisements are coming to Spotify podcasts

Ads are coming to podcasts on Spotify. Spotify announced it is using a new technology called “Streaming Ad Insertion” to create targeted ads on exclusive podcasts on the platform. The advertisements will be inserted in real-time based on user data.

“Spotify Podcast Ads offer the intimacy and quality of traditional podcast ads with the precision and transparency of modern-day digital marketing,” Spotify said in a news release.

Puma was noted in the release as the first partner to alpha test Spotify’s new advertisement tool. The brand’s ads were featured on Spotify’s original podcast, “Jemele Hill Is Unbothered.” Spotify says, “the iconic footwear brand drove ad recall lift of 18 points.”

What’s next for podcasting advertisement? — According to Podcast Insights, there are currently over 800,000 podcasts with over 30 million total episodes as of December 2019. Although fairly new to the podcast landscape, Spotify has dominated with original podcasts and exclusive partnerships ranging from Joe Budden, Amy Schumer, and Jemele Hill.

At the beginning of the podcast boom, the difficult issue many struggled with was how to properly monetize podcast content and figuring out the best revenue model. With the streaming platform’s unique positioning in both music and podcasts, Spotify is well equipped to properly position this tool to dominate a land of its own amid competitors like Apple and Google.