Spotify Ends The Search For Promo Code With Its In-App Offers Feature
Spotify has recently announced its new feature. It will end customer hustle to search for a promo code online. Customers can buy a subscription of their favourite podcasts with on discounted prices with these promo codes.
Now, the customer will see an embedded link on the podcast. Just by clicking on this embedded link, the customer will be able to avail the promo-code. The link will automatically redirect the customer to advertiser’s website. Once the customer is on the website of the advertiser, the site will automatically detect the promo-code and will show you the discounted price.
/cdn.vox-cdn.com/uploads/chorus_asset/file/20041758/spotifyads.gif)
Image credit – TheVerge
Currently, Spotify is testing its “In-App Offers” feature. It will be a great relief for the consumer. Now, they don’t have to remember the promo code and march from pillar to post to get discounts.
According to Spotify, this is just the beginning of its interactive advertisement. The company states that they are researching for more ways to “create more of a direct funnel for brands.” It will create a strong impact and bring more live audiences to the Spotify platform in search of promo code.
Jay Richman, Head of ads business and platform at Spotify stated,
I think you could start to then piece together what a potential roadmap could look like, just based on the model with which we view this opportunity.
So, it is one step in a larger innovation path to productize the coupon code.
The first test conducted on Harry’s in the United States of America. The podcasts which participated was “Last Podcast on the Left and with Hello Fresh in Germany on the podcast Herrengedeck.” The promo code will be visible to a limited number of listeners. It will be visible only during the campaign time frame.
Spotify started inserting advertisements in podcasts from the month of January. They did this using their Streaming ad insertion technology. This technology is also known as SAI.
SAI inserts ad to the podcasts when people are listening to them. The SAI technology is advance and targets the audience based on their demographic and data-driven synergy.
Now, with SAI, Spotify is planning to expand its advertisement market in the US and some parts of Germany. SAI is a Spotify owned technology and is currently possesses an approximation of 100 monetizable shows.
It will give an upper hand to Spotify in capturing the advertiser market. Hence, it will lead to advertiser’s spending more money. Spotify will make sure that advertisers get better results for their advertisement.
For now, Spotify has opened the window for advertisement on the shows in its purview. Although, there are chances that Spotify might open the gates to the outside world and may charge revenue for the ad sales.
Making Video Campaigns on Spotify Is Now Easy with Sound-On Video Ads!
Key Insights:
- The Ad studio debuted in 2017 and thereafter Spotify has nearly doubled its user base.
- Spotify witnessed an 11% rise globally in mobile downloads.
- Spotify reports an average of 25% of overall ad revenue from video accounts.
- In the past one year, Spotify has witnessed a 68% increase of active advertisers, with double the ads running.
Spotify has announced video advertising on Ad studio, its self-serve platform, in Canada, the U.K, and the U.S. This update is available to select advertisers in the recently added test markets to Ad Studio in April.
The Ad Studio was created initially for small and medium-sized advertisers to connect with Spotify listeners and create budget-friendly, customized audio ads for the platform. In April, it had expanded to 18 more markets and exited the beta version.
Spotify Push into Video Ads can increase brand awareness and brand recall.
Spotify said that often users on other platforms prefer viewing video ads muted, however, Spotify listeners are’ engaging with their sounds on.’ Complimenting their audio ad offering, video ads will give brands a visual storytelling opportunity for the in-focus moments.
The streaming giant further notes that running video ads with audio produces higher brand results than going solely for video ads. Video ads with sound-on lead to 1.9x ad recall and 2.2x increase in brand awareness, according to the company data.
The company said in a statement,
“Unlike many other platforms, on Spotify, listeners are already engaging with their sound on, offering a valuable opportunity for a brand’s message to be seen and heard. This multisensory experience can extend a brand’s audio ad strategy, providing another touchpoint to capture listeners’ attention and share messages across all relevant moments.”
Rise in advertisers using Spotify Ad Studio’s creative perk
Ad studio that is available in 22 countries globally has leveled up the playing field in creative production by offering a free service to generate a brand’s ad spot. Advertiser on Spotify’s Ad Studio can upload a script and in as little as one hour (48 hours in some cases) they will deliver a fully produced ad that includes music and voice over.
The company said that 37% of Ad Studio customers rely on their free voiceover tool for ad creation. Additionally, 50% of its advertisers used this tool in May, which is an 11% rise from March.
Ad Studio offers two options of ad format for video ads- horizontal video and vertical video. Horizontal video can run across all platforms and vertical video is optimized for iOS and Android.
Image Credit: Adweek
Image Credit: Adweek
Why should brands advertise on Spotify?
The company reported recently that it has 286 million active users and 130 million paid subscribers. Spotify is the third-largest advertiser in the world after Facebook and Google.
Spotify Ad Studio enables brands to reach targeted and relevant customers. Their programmatic audio advertising is the best way to reach Gen X and beyond.
If you think ads may annoy the listeners of Spotify, think again. Statistics by Acquisio states, 75% of digital audio listeners think commercials are totally fine on a free streaming service. 47% think ads are even less intrusive on Spotify than traditional radio.
For instance, brands targeting the hip audience that are interested in current trends can consider advertising on Spotify. Advertisers can take advantage of the Spotify data of logged users like moods, preferences, listening habits, interests, and activities. This will help brands to create customized ads.
Learn more: Spotify Adds $1.7B To Market Cap In 23 Min Post A Deal With Joe Rogan, World’s Leading Podcaster.
Spotify Adds $1.7B To Market Cap In 23 Min Post A Deal With Joe Rogan, World’s Leading Podcaster.
The streaming giant Spotify gave 100 million reasons to Joe Rogan to make a move. Though the details of the deals are not disclosed, The Wall Street Journal reported that Spotify is entering in an exclusive licensing deal with Joe Rogan, owner of the world’s leading podcast worth more than $100 million, a move directly aimed at podcast market leader Apple.
Spotify stock shot up on the announcement of the deal and the founder Daniel Ek is now worth $2.8 billion.
Image Credit: Twitter
Why it matters
This is a landmark move for the medium. According to Neilsen, most Americans subscribe to only one audio subscription service but this trend can certainly change if more podcasts prefer to offer exclusively on certain platforms.
- “The Joe Rogan Experience” features long talks between Rogan and celebrities, subject area experts, comedians, and more. It is the second most popular podcast on Apple’s platform.
- Launched in 2009, the podcast was labelled independent and video versions are streamed on Rogan’s YouTube channel which has a loyal fanbase of more than 8.4 million subscribers and witnessed more than 100 million streams in March alone.
- According to MIDiA Research, the difference between Spotify and Apple as the leading podcast platform is so small that it can be considered within margin error.
Details:
The host Joe Rogan announced that the podcast will be available globally on Spotify starting September 1 and will become exclusive by end of the year.
What did he say:
“It will remain FREE, and it will be the exact same show. It’s just a licensing deal, so Spotify won’t have any creative control over the show. They want me to just continue doing it the way I’m doing it right now … I’m excited to have the support of the largest audio platform in the world and I hope you folks are there when we make the switch!” -Rogan on Instagram
- Spotify plans to incorporate video elements of the show that will be available as in-app vodcasts.
- Spotify will start selling ads in September through a partnership with PMM who is representing Rogan’s ad inventory over time.
- The popular comedy talk series will be available for free to all Spotify users like all podcasts on Spotify.
Image Credit: Axios
The bigger picture
Inking exclusive deals with leading podcast players is the latest strategy to woo more listeners. This could compel users to subscribe to multiple audio streaming services to access all favourite content.
- Spotify paid $196 million for Bill Simmons owned sports media company ‘The Ringer’ in February,
- Apple plans to fund and make podcasts for its own platform to promote its TV shows reported by Bloomberg earlier this year.
- Luminary expanded its services globally, bringing many exclusive podcasts to new regions.
Yes, this marks a significant moment for Spotify as it has invested over $500 million on acquiring podcast companies in the past one and a half years and has over one million podcasts on its platform. It also debuted ‘Streaming Ad Insertion’ which provides marketers access to insert host-read ads.
Apple Rises On The Frustration Of Publishers On Apple News.
For several months Apple is seeking participation from publishers in its premium program. Apple initiated this project a year ago aiming to create audio files of the stories published on its News+ platform. Apple thinks that this will be a great leap in the future of news reading. Nearly four separate publishers have listened to this approach now.
Apple declared that it’s going to handle the production costs. In a statement, Apple said that they will compensate the publishers of audio content in the same way they compensate their Apple News+ publishers for their written content. According to sources Apple pays around 50 % of the revenue amount to publishers which users spend in the duration of 30-days on its Apple News+ platform.
With its approach of audio content on Apple News+ Apple fancied to stay trending in the innovation market. The reason for the adoption of this format is a profound influence by other service providers. Many private websites started publishing podcasts(a digital audio file). It’s the new trend taking over! Therefore, you can imagine why Apple wants it so severely.
This decision received miscellaneous reviews from publishers.
Associates from publishers, who are in conversation with Apple for this project stated that Apple seeks permission to initially choose files for conversion. Most likely, this will be done as per the user’s interest.
They further stated that publishers are in conversation to handle any other obstruction that may subvert the deal. One of the issues which arise relates to the freelancer writers’ articles. Freelance writers compose many articles written in Apple News+. These articles forbid third-party re-usage to users similar to Apple.
Apple is making a huge effort to make this deal happen. Apple wants to lift maximum responsibility to make sure other participants don’t strive, still, Apple faces criticism on several fronts.
Many worry about the compensation, and some just think that it’s not feasible; as listening to audio takes more time than reading an article.
In a statement, an associate from the publication involved in the conversation with Apple stated, he heard Apple stating the following:
“All the publishers who were part of Texture are going to get into an arms race.”
No declaration for the release of the audio files can be provided.
Even Apple has declined to release any official statements regarding this!
It may not be the best time for Apple to fulfill the desire of releasing audio stories for its Apple News+. Many publishers have registered dissatisfaction regarding the amount of money they make using Apple News. In a quarterly earnings call, Tim Cook, CEO of Apple announced that they have an increase in their active monthly user. The number has increased to 125 million, which is indeed a wonderful number of audiences. Last year the number of users registered was 90 million. By these reports, you can calculate the tremendous growth in the user base of Apple News+.
With a huge increase in audience, publishers should be getting 50% share of users’ monthly expenses, still, why are publishers showing disappointment with Apple regarding money?
The answer to this could be the Last official announcement made by Apple regarding its users of Apple News, which was 48 hours after the product was launched. In this announcement, Apple stated that they have achieved 200,000 subscriptions in just 48 hours. According to a publisher, they just receive $20,000/month, they affirmed this while talking to a channel.
Several publishers shared similar experiences, describing the payment process of Apple News as “horrendous.”
As per the Alliance for Audited Media, publishers can count every download of their issue as a circulation number. The reason for this implies due to the media and ads which remain the same in both the versions.
Increasing speculations, Bloomberg in February reported, Liz Schimel, who was leading the News platform of apple resigned from his job without even completing a year with the organization.
No doubt that the demand for audio formatted content is increasing. Today, SpokenLayer is a star name in producing and distributing audio contents. They stated that their client base has gone wide in just four years. Before, the numbers neared Zero and now they are distributing Audio content over 12 distinct platforms.
Giant techs like Amazon, Google, and Spotify are already leading the audio content game in diverse genres. In some cases, publishers are getting funds directly from Google for composing their audio content.
