Spotify is asking brands to bid for ads based on your individual tastes

Spotify is giving brands the opportunity to automatically target individual listeners with 15 and 30-second ads based on the music they choose to listen to.

The streaming service has adopted ‘programmatic audio advertising’ through a new deal with ad marketplace owner Rubicon Project, in addition to fellow programmatic specialists AppNexus and The Trade Desk.

This essentially enables advertisers to target Spotify inventory automatically, based on a user’s age, gender, music taste and specific playlists.

Spotify can do so by giving Rubicon access to its wealth of data across 70m+ free users.

Brands and agencies will be asked to bid for ad slots in real time within private marketplaces and the industry-standard matrix Deal ID – clearly an attempt by Spotify to drive up the cash it’s receiving from its typical ad deals.

Last year, Spotify’s ad revenues nearly doubled on 2014, up 98% to $219m (€195.8m).

Despite subscription revenues growing by a slightly slower pace, up 78%, they still dominated the company’s income with $1.95bn (€1.74bn).


“Today, we are extremely excited to be partnering with Rubicon Project to make our premium inventory available in an automated fashion, providing advertisers the ability to deliver ads in real-time to more than 70 million registered Spotify users whether they are commuting, at work, at the gym, at home, or wherever they regularly consume audio content,” commented Brian Benedik, Global Head of Sales, Spotify.

Harry Patz, Chief Revenue Officer, Rubicon Project, said: “As Rubicon Project continues on our mission to automate all forms of advertising around the world, we are extremely excited to be blazing the automated advertising audio trail with a digital audio leader like Spotify and to be tapped as the only destination where buyers can purchase this premium inventory in an Automated Guaranteed fashion.

“Audio providers like Spotify are primed to tap into the enormous benefits of advertising automation.”

Harry Patz, Rubicon Project

“With consumers increasingly turning to their mobile devices to consume content, streaming audio providers like Spotify are primed to tap into the enormous benefits of advertising automation as buyers seek access to audiences exactly where and when they are most receptive. We are thrilled to partner with Spotify on this first for the entire industry.”

Audio ad slots are available to brands across sponsored play, individual and national playlists, and podcasts.

Spotify says its programming ads ability now stretches across display, video and audio.

“We’re now one step closer to our goal of making all of our innovative ad experiences available programmatically,” it said in a statement.Music Business Worldwide

Related Posts