Spotify’s podcast maker Anchor accesses the company’s largest audio ad network – TechCrunch
Earlier this year, Spotify introduced its new audio advertising marketplace, the Spotify Audience Network, which enables advertisers to reach audiences through Spotify’s original and exclusive ad-supported music and podcast programs, as well as than third-party podcasts from Megaphone publishers, all in one. place. Today, the company is launching access to the Spotify Audience Network for creators who use its Anchor podcast publishing tool in the United States.
Support for Anchor was previously announced when Spotify first unveiled its plans for the Spotify Audience Network in February at its “Stream On” live event. The company described the new platform as a potential game changer for the podcast monetization world, as it would give advertisers tools to reach the Spotify audience of hundreds of millions of people.
The news followed an investigative report from The Verge, which revealed that Anchor was struggling to find sponsors for smaller podcasters, as he had promised. Instead, Spotify itself has turned out to be the main sponsor of Anchor advertising to date. However, the early days of the Spotify Audience Network put this report into perspective. It looks like Spotify may have chosen to prioritize building this larger ad market, rather than working on raising sponsor awareness for the smaller shows.
The Spotify Audience Network has already been launched in the United States, United Kingdom, Canada and Australia, where it now feeds advertising on Spotify shows and other third-party podcasts, such as those of the Wall Street Journal and ViacomCBS. Although the company today declined to say how many total podcasts are participating in the market, it said the total has grown by more than 50% since launch, and around 4 times as many advertisers are now showing ads on the network. Many are first-time podcast advertisers, like Saks Fifth Avenue.
Meanwhile, when he added the megaphones inventory to the Spotify audience network, he increased the reach of advertisers by 30%. Megaphone publishers saw fill rates increase by more than 10% in June and CPM by more than 40%, according to Spotify.
With the added support of Anchor, Spotify notes that advertisers will be able to reach a large portion of Spotify’s podcast catalog, as Anchor powers 70% of podcasts on Spotify. It will also allow advertisers to reach popular shows such as “Alyssa Milano: Sorry Not Sorry,” “How Long Has Been Spent” and “Office Hours Live With Tim Heidecker,” the company noted.
Instead of taking a percentage share of advertiser payouts, anchor makers who are part of the Spotify Audience Network will receive a flat-rate RPM (revenue per thousand listeners), the company told TechCrunch. But this detail is not mentioned on the website which presents the advertising options to the creators of Anchor. Spotify says the The pricing will be visible to participating creators in the Silver tab of their Anchor dashboard, and for now, the pricing is $ 13 RPM.
Spotify said the expansion is just one way for advertisers to more easily reach the podcast listener base on its platform.
The company will also soon launch support for purchasing podcast ads in Spotify Ad Studio, its self-service channel now available in 26 global markets. Before, advertisers would have needed a direct relationship with the Spotify team and a substantial budget to advertise on its podcast network. But Ad Studio’s launch of podcast ad buying will allow smaller advertisers, such as universities, independent artists, app developers and others, to now buy podcast ads, according to Spotify. This launch will take place in the United States before being rolled out to other markets.
One of the early beta testers for this feature included Two Men and a Truck, which first used Spotify Ad Studio to test podcast advertising. As a result, the company said it will now make podcast advertising part of its marketing plan.
In line with today’s news, Spotify announced that it is joining the Global Responsible Media Alliance (GARM), as the first member of the audio platform. Here it will help define the brand’s safety standards for the audio industry.
He also announced that he will give advertisers tools to exclude sensitive topics from their ad purchases, to give them more control over where their messages are heard. And it will offer new controls that will allow advertisers to target ads by context. Spotify gave an example of this by explaining how an animal shelter could target ads on a podcast about pets.
Historically, podcasts have struggled to monetize effectively, outside of the larger networks that could reach large audiences through their various programs. This is why Spotify has taken over various networks over the years, like Megaphone, Gimlet, Parcast and The Ringer, for example. But for small publishers, it has been difficult to compete and capture much, if any, of the potential ad revenue.
With the extension of the Spotify Audience Network to Anchor, creators would at least have a better chance of being exposed to more advertisers and campaigns. But since payouts are always based on their audience size, it likely won’t drastically change their fortunes overnight. However, Anchor does offer podcasters other ways to monetize, including its new podcast subscriptions and Ambassador ads (which allow creators over 50 listeners to promote Anchor), in addition to the premium referrals available for broadcasts. public.