Spotify’s app on Roku will now feature video ads thanks to cooperation between Roku and Spotify. In the US, Canada, and Mexico, Roku is the most popular TV streaming service. The cooperation between Spotify and Roku, which dates back over a decade, and the launch of the Spotify app on Roku, is strengthened by this collaboration. The new invention, according to the businesses, is the first step in bringing Spotify’s CTV partner network online. Through the relationship, Spotify will be able to offer additional video content, offering marketers more opportunities to engage with the platform’s more than 500 million MAU users. Spotify Video Inventory will be available on Roku as part of the Roku Audience Network. It will be accessible as a component of Spotify’s Video Everywhere ad service.
What’s in it for advertisers?
The ability to contact customers on any device is the key to successful digital marketing. Although it also applies to marketers, it is a best practice for user experience. Larger screens are now available in homes thanks to the expanding app ecosystem on Smart TVs. As consumer patterns change, businesses who don’t have a presence on this wider screen through CTV advertising are losing out. Additionally, viewers are increasingly turning to streaming to watch and listen to all of their favorite material. It includes everything from music to stand-up comedy routines to podcasts. In order to reach consumers where they are focused, advertisers are refocusing their marketing budgets. They are converting to linked gadgets from linear television. Brands will have an extra chance to reach the combined audiences of both streaming channels by partnering with Roku.
Spotify’s CTV Partner Network
The agreement with Roku is a first step in expanding Spotify’s CTV Partner Network. The quantity of visual experiences on Spotify has been growing, and these experiences will now include video ads. A beta version of DJ, which provides music recommendations and comments from an AI disc jockey, was released by the streaming service in August. Spotify introduced Blend in 2021. It is a shared social listening platform that enables users to make custom playlists to share their individual musical preferences with friends and family.
The Video Takeover Ad experience from Spotify reaches customers listening to music on their smartphones, tablets, and desktop computers. Soon after, CTV devices will be added, starting with the Roku platform. Future additions to this offering by Spotify will include even more video ad offerings, like video podcasts. In order to reach more users, the new Spotify app on Roku will include artist snippets and video clips mixed with ad formats like Sponsored Sessions. In order to give users a more participatory experience, it will also include Call to Action cards for podcast advertisements.
For more than a decade, Roku users have had access to the Spotify video app. While most people use Spotify to listen to music and podcasts, they also use it to create playlists, search for content, and watch artist videos and audio podcasts on their screens. Roku has been busy releasing new ad experiences on the platform in addition to adding video ads to the Spotify app on CTV. In a recent announcement, the business said that it was expanding its collaboration with Shopify to enable customers to buy goods from Shopify merchants using Roku Action Ads. Viewers can make purchases straight from their TVs and pay with Roku Pay.
Here’s what they said
Lee Brown, Spotify global head of advertising & business platform said,
As a longtime leader in the streaming space, we’ve had a front-row seat to audiences choosing streaming to enjoy content and advertisers following suit to reach them. It’s long been our goal to make Spotify available to anyone on any device and this partnership with Roku answers the call from advertisers who want even more ways to reach our users. Both our brands have been at the forefront of the streaming revolution and together we’re continuing to invest in more opportunities for advertisers to connect with our immersed users.
Alison Levin, VP, ad revenue and marketing solutions at Roku commented
As longtime partners, we’re excited to launch Spotify’s TV streaming video ads that will reach both of our streamers on platform and drive measurable campaign impact for brands. Roku and Spotify are uniquely positioned to make the largest screen in the home work harder for brands. We are thrilled to partner with Spotify on this at launch.
WPP and Spotify, the worldwide streaming platform, have formed an unparalleled collaboration. This multi-year agreement will provide WPP customers with priority access to Spotify’s ad solutions and first-party intelligence. Spotify is the sole audio streaming platform to be integrated directly into WPP’s product offering as a result of the partnership. The collaboration will concentrate on information, perceptions, creativity, technology, programmatic strategies, and forecasting market growth. The agreement will also add significant value to WPP and its customers by using information about the relationship between music and audience views and behaviors.
WPP’s Choreograph technology will be used in conjunction with Spotify’s first-party data analytics to help clients analyze average listening behaviors. This will help customers develop effective and innovative digital audio marketing campaigns. The partnership will also focus on offering market-leading approaches and training WPP’s team and clients in digital audio creative and Spotify ad solutions. Furthermore, they will have early access to Spotify’s Neuro insights research.
Music Listeners – The Most Active Engagers
Tempo and passion are musical characteristics that help estimate human temperament. This enables advertisers to recognize their audiences emotionally. Spotify collaborated with Neuro Insights to reproduce Sonic Science Volume 1. This time, they used audio commercials from WPP clients to learn about connection inducers, emotional power, memory recollection, and other topics.
The study discovered that as music streamers switched from music or podcasts to WPP customers’ audio commercials, their ad interaction increased by 17%. Furthermore, Spotify consistently drove better responses than any other media source. Furthermore, it was discovered that ad engagement was at a record high regardless of what users listened to. Campaign development and improved client targeting have become more efficient due to the WPP-Spotify relationship. These insights have enabled WPP and its clients to reach previously untapped Millennials and Gen Z customers.
Stepping Stone for Spotify
Spotify’s second-quarter performance fell short of expectations. The audio streaming platform attributed the decline to market factors. Nonetheless, it continues to add registered users steadily. Spotify may benefit from increased ad earnings due to the collaboration. This cooperation aims to improve customer data collection. WPP intends to eliminate third-party cookies from the platform next year, and that’s why they leverage customer data.
Spotify has a high level of ad engagement among its podcast and music ecosystem listeners. Every day, over 550 million people from 184 different countries listen to audio content on Spotify for an average of two and a half hours. WPP will benefit from Spotify’s massive customer data thanks to this agreement.
What will WPP reap from this alliance?
WPP will gain from this partnership in many ways. Here are some examples.
- First mover advantage in accessing Spotify’s mood data using Wunderman’s Zipline™ Data Management platform. WPP and its customers can improve targeting choices across platforms by connecting their own data with Spotify’s insights into user emotions, listening behaviors, location, etc.
- Unparalleled access to Spotify insights into connected device activity. This is aided by identifying and delivering the correct message to the right audience at the right time.
- Launch partners for AppNexus’ audio programmatic marketing tool
- Spotify’s primary launch partners in specific emerging markets
- Access to beta testing and exposure on Spotify’s product map
Stephan Pretorius, Chief Technology Officer of WPP, said
In the fast-evolving media and entertainment landscape, audio streaming has become an integral part of everyday life. At WPP, we recognise the power of audio as a critical component of marketing.
Brian Berner, Global Head of Advertising Sales, at Spotify, said
We’ve long partnered with WPP to enable agency planners and buyers to make more informed decisions when planning for digital audio. With our new global partnership, we’re helping WPP clients modernise their strategy and planning. As we continue to drive innovation in audio and the advertising industry at large, partners like WPP are critical to delivering for advertisers, creators and audiences wherever they are.
Spotify has launched a new ad format for podcasters called “Call-to-Action Cards” — or CTA cards. When the audio ad begins to play, the functionality, which is powered by Spotify’s streaming ad insertion technology, will show a visual ad in the Spotify app.
Advertisers may personalize the cards by adding their own photos, text, and other clickable buttons that drive listeners to “shop now” or take the appropriate action the advertiser wants.
Although adverts might capture users’ attention while streaming, Spotify understands that listening to podcasts is typically a background activity, with the app running in the side while the user is doing something else, such as everyday domestic activities.
Interesting Read: Making Video Campaigns on Spotify Is Now Easy with Sound-On Video Ads!
As a result, the redesigned CTA cards are now visible on both the show and episode pages of the podcast on Spotify. The company claims that this allows the targeted listeners to interact with the ad later on when browsing around the Spotify app. These cards will be accessible for up to seven days after the listener hears the advertisement, or for less if the campaign ends sooner.
Jay Richman, Spotify’s head of Ads Business & Platform, said –
“We think about these cards as an important step towards modernizing the format — a format that will become more capable over time, as we add shoppable and video and other interactive features into them.”
Spotify believes that the format will expand in the future to do more than merely link viewers to a landing page. Advertisers that use the format will get reporting and measurement based on confirmed ad impressions, which is made possible via streaming ad insertion.
What is Apple’s new in-app purchase policy & how does it affect people from different areas?
In-app purchases are used to sell content in numerous categories. Available content ranges from services, new features, and even subscriptions. On an Apple store, a user is independent to make purchases on/for an iPad, iPhone, Apple watch, and Television.
The in-app purchase is divided further into four main categories:
- Consumable: An in-app consumable purchase could be anything that can be exhausted with time or usage. These mostly include subscriptions, purchases for games like coins or gems, or maybe progress in a particular game.
- Non-Consumable: Non-consumable items usually come with one-time purchase options. These items can include filters for a phone camera, business application with one-time purchase options e.t.c.
- Auto-Renewable section: These services come with a subscription that gets exhausted in a time frame. The consumer needs to refuel the quota to keep the service working. These services could be a subscription to a monthly magazine or a yearly purchase for an upgraded feature of an application.
- Non- Renewing Subscription: There are certain limited-time features or one time purchases bought from the app store. Due to their fewer availability, it is hard to renew their subscriptions. Therefore they remain as a non-renewing subscription due to their limited availability.
In a statement issued by Apple to the media, regarding the in-app purchase policy; “All we require is that, if a publisher is making a subscription offer outside of the app, the same (or better) offer be made inside the app, so that customers can easily subscribe with one-click right in the apps.”
The statement raised concerns, as the publishers/developers of these services had to pay a large chunk of their share to Apple. The calculated share was estimated to be 30% of their earning.
The implemented policy included all the products. These included magazines, newspapers, videos, movies etc. Even the high stake players like Hulu Plus, Netflix, Spotify, and Rhapsody did not get any flexible walk away.
The biggest challenge was the 30% revenue that these applications had to share with Apple.
To avoid any purchases outside the Apple environment, Apple does not allow any external purchase mechanism that can grant users a subscription in Apple. Hence, there was no backdoor entry for anyone. It was clear that if these companies wanted to serve their business to the audience of the Apple environment, they have to bow down to the laws laid by Apple.
Another restriction for the application is that they can not link themselves to the Amazon website.
After facing criticism from several competitors, publishers, developers, and even service providers, Apple made changes to its policies.
The new rules allow developers and publishers to set the price of their products and services according to their convenience. However, the restriction on linking external sources within the application is still prohibited.
Apple is not forcing Amazon to sell their books in the Apple store. If Amazon decides to do so, they are allowed to charge a premium amount from the customers. It will help Amazon compensate the amount to Apple.
Another reason for the change in policy could be the Financial Times application winning an award for the best web-based application. The application can bypass the Apple AppStore and can open in a browser.
However, Financial Times will continue to host their application on the Apple platform, but they aim to direct the audience on to their browser-based web-application.
Though the FT Times new web-based application created a polarity amongst the other publishers. They have to decide their future with Apple-store.
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.
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.
- 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.
Why should brands advertise on Spotify?
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.
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.
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.
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.
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.
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.