The streaming music provider Spotify is on the way to increase advertising revenue

Music streaming specialist Spotify Technology S. A. (SPOT) is investing in a platform that will help significantly increase advertising revenue. 

According to forecasts, advertising revenues in the future will even surpass revenues from the provider’s core business. Additionally, in early October 2021, Spotify updated its Spotify Audience Network (SPAN) platform, which may be crucial in increasing its advertising revenue. 

The company announced that SPAN is now to Anchor, a podcast distribution platform that Spotify acquired for $140 million in 2019. Recall that for the first time; the provider announced the advertising platform in February of this year: SPAN combines all advertising opportunities in one place. 

It is a two-way platform using ad streaming technology, allowing advertisers to target listeners and monetize their content. Advertisers can sell themselves in various advertising spaces, including through music with ads, third-party podcasts created on Megaphone or Anchor, or even their original and exclusive Spotify shows. 

Thanks to data provided by Spotify users, such as age, gender, listening habits, and more, SPAN helps advertisers find the optimal listener base. 

Thanks to podcasts supported by the Anchor platform, advertisers now access a more comprehensive selection of shows. In addition, Spotify mentioned that it would deploy self-customized advertising opportunities for companies of any size, including the smallest ones, in the coming weeks. 

Spotify’s podcast business is growing fast. In the past quarter, its revenue grew by more than 620% year-on-year. In addition, the SPAN platform update dramatically expands both the advertising inventory and the circle of potential advertisers. 

Thus, it can be assumed that Spotify will show additional revenue growth from podcasts in the coming quarters. At the auction on October 15, the SPOT stock was worth $247.4.