March 5, 2019 - Alison Weissbrot of AdExchanger writes: Programmatic will be key to Spotify’s ability to scale as it expands from a music platform to an audio platform with spoken-word content.
Since launching its audio capability in 2016, Spotify’s programmatic business has grown to capture 20% of all ad revenue on its platform. In addition to a self-serve platform launched in 2017 that caters to direct response buyers, Spotify offers private marketplaces (PMPs) and programmatic guaranteed deals for brand advertisers, as well as direct IOs.
As streaming audio becomes a more popular buy among advertisers, Spotify wants to be able to transact any way a brand wants, said Julie Clark [pictured], global head of automation sales at Spotify. That’s why its entire sales team is trained to sell both programmatic and direct inventory.
“In the year and a half I've been here, I’ve seen audio go from being an interesting conversation to something marketers really need to understand,” she said. “The market is moving toward more automation, but different clients have different needs.”
With its acquisitions of Gimlet and Anchor making it a major podcast player, Spotify wants to apply the same automation to its spoken-word inventory. But it’s still early days, Clark said.
“It’s a unique listener experience,” she said. “It will likely be true to how Spotify approaches everything: starting with the user experience.” More...