News

POV: Spotify Programmatic

Background:

Spotify’s mobile audio ad inventory is now available programmatically through private marketplace (PMP) deals, thanks to partnerships with AppNexus, The Trade Desk, MediaMath and Rubicon.  This allows ad buyers to tap into what they know about users using the same 1st and 3rd party data they use across other platforms in order to serve them messaging in unique audio ad formats versus the usual display and video programmatic formats. This offering is available in all of Spotify’s 59 markets across the globe.

Details and Implications:

As the industry (and budget) moves largely towards programmatic buying, publishers have made continued efforts to ensure they do not get left behind. Spotify’s programmatic audio ad products are yet another way to tap into the same data ad buyers use across their campaigns, as well as use client data in order to more efficiently and effectively target users - even across the more unique ad formats. The fact that this offering is only available via Spotify’s mobile platform is telling in terms of where user traffic is expected to grow.

  • The same as with a publisher-direct buy, brands using the programmatic buying method will have 100% SOV during the listening experience, with an audio ad and a companion banner. Audio spots can be 15 or 30 seconds and are non-skippable.
  • Advertisers are able to buy Run of Network PMPs or audience-specific PMPs, depending on the brand’s reach and target goals.
  • Spotify 1st party data is available to utilize, but advertisers are also now able to layer on their own data as well. That data can be used to target Spotify users via mobile ad device ID matching.
  • PMP targeting packages include: run of site, first-party registered demo, real-time playlist targeting, and real-time genre targeting.  Language targeting is also available.

iHeartMedia and Soundcloud are the only other partners in the music streaming space offering audio inventory programmatically, so the addition of Spotify allows advertisers to further scale any audio creative they may have or provide stronger support for creating audio ads. Note that Spotify does have display and video programmatic offerings as well.

Summary:

Spotify’s programmatic audio ad offering allows advertisers the opportunity to reach consumers in an ideal high impact and low clutter environment. As the digital media industry continues to move towards programmatic buying, advertisers and media buyers should be on the lookout for the more unique offerings becoming available programmatically.