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Dynamic ads on Spotify are the latest bet of the famous platform to take control of the podcast sector. The first and big step was when in 2019 it acquired expert podcasting companies such as Archor or Gimlet Media . Now he is announcing with great fanfare the arrival of Streaming Ad Insertion, a technology that will allow merchants to have better metrics.
Spotify says it will start inserting ads in real time, based on what it knows about its users. It will be based on parameters such as location, device type and age, similar to how the web works .
What are podcast ads like?
Dynamic Ads on Spotify are intended to work as an enhancement to the usual ads you hear on podcasts. Since its inception, the podcast has been an open format, based on audio files embedded in an RSS feed. Podcast players downloaded the files from each feed and gave the option of offline playback.
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The popularization of the podcast has not gone unnoticed by the large companies in the sector. Apple bet on podcasts a long time ago and now iHeart Media and Spotify have joined the list. The arrival in the world of Spotify, with almost 250 million users, has captured the attention of advertisers and communicators. Businesses see a powerful loudspeaker for their programs and marketers aspire to make big profits from them.
Until now, podcast advertising was shown to the listener in two different ways. One is the lifelong advertising spot, which is often read by the podcast host himself . The advertiser does not get an economic return for each listen and its profit is more difficult to quantify. They are already within the broadcast itself and the players are not able to interpret them separately.
Dynamic advertising solves this headache for trademarks. In this case, the ad is embedded in the file before it is downloaded or played. This can be embedded at the beginning, middle, or end of playback. Likewise, you can offer ads to previously targeted audiences and even put new ads in chapters already broadcast.
What dynamic ads offer on Spotify
Spotify launches into the podcast world with a strong base of millions of listeners and a powerful monetization platform. The new dynamic ads on Spotify work with Streaming Ad Insertion (SAI), which offers various planning, reporting and measurement possibilities. The music platform has wanted to adapt to the new trends of modern digital marketing. The significant advances are as follows:
Reach the market niche that interests you . Spotify podcast ads reach a user base of millions of listeners around the world. Until now, advertisers relied on audience surveys to determine where to allocate their podcast ad budgets. The platform will provide statistics-based recommendations and ideas to help brands reach the right audience .
Know that the ad is delivered properly . Advertisers were not fully aware of the performance of their podcast ads due to downloads. Now Spotify podcast ads will measure actual impressions as they play. Likewise, they will inform about age, gender, device and the listening behavior of the audience reached.
Check the real impact of the investment . Without knowing who actually heard an ad, companies were unable to measure the impact of their podcast advertising. To date, podcast advertisers have found creative ways to find out if their ads were heard. With Spotify Podcast Ads, they can take advantage of their measurement tools to learn more about how their brand is perceived.
Interesting improvements for companies
Spotify promises numerous advantages to brands that bet on this new methodology. The experience for the user will be better, as they will be shown ads that more closely match their profile. That is, two people listening to the same podcast will not receive the same ads.
With dynamic ads on Spotify, advertisers will get better metrics . Many companies were reluctant to enter the music platform due to the unreliability of their data. Now, by knowing precisely how your campaigns are performing, they can decide how much to invest.
With this new option Spotify offers detailed information about ads and promotions to advertisers. The downside is that they can only use the tracking technology when the playback is streaming. Podcasts that are heard downloaded will not generate statistics. Thus, if a podcast is played outside of an online connection , the user will not receive personalized ads.
Likewise, listeners can link podcasts to ads they hear. This has an impact on the user's purchase decision, who will choose the brand that generates the most sympathy . A product advertising on your favorite show has a better chance of being purchased than others in the same category.
Privacy and data use raises questions
Not everything shines when it comes to dynamic ads on Spotify. The podcast industry is concerned about how Spotify's advertising practices will develop. The brand hasn't released much information on various topics yet. It is not known to what extent the privacy of listeners is guaranteed, nor the real priority of Spotify. Do you really bet on the podcast or do you see above all a great revenue stream?
You are also wondering what use is given to customer data. Users provide certain personal data to the platform when they register. The platform has announced that it will use the data it has about its users, such as age, gender, location and device. The question is: will you share this information with third parties?
On the other hand, it will be necessary to see how often these ads will be shown while listening to the podcast. Will it be something specific or will we see invasive advertising? Spotify runs the risk of wanting to reach everything and end up making listeners bored. An ad overload can lead users to download your programs from free, ad-free platforms.
Is advertising on podcasts beneficial?
The advantages that dynamic ads promise on Spotify are tempting, but the podcast format still generates some mistrust. The truth is that audio is going to be the dominant format in the advertising sector in the future. The IABA association places it ahead of Branding or Content & Native Advertising .
In addition, the format is fashionable in our country. Currently, almost 40% of radio listeners do so through podcast and the trend is on the rise. A Spotify study shows that 81% of listeners have taken action after listening to ads during a podcast. The podcast industry is forecast to be one of the big markets by 2021.
Audio will transform the advertising of the future and influence the relationship between users and brands . It is a great ally, since direct communication is achieved and will mean changes in the way of looking for information. Google is investing in R&D to create new algorithms that fully understand user voice searches.
Uploading a podcast to Spotify is quick and easy
The popularity of the Spotify podcast service continues to increase, as well as the companies that enter it. Its catalog of programs is growing rapidly and gaining popularity . Here are the steps to upload your podcast to Spotify and increase your visibility.
In some cases it can take up to 5 days to appear on Spotify, but most do so within a few hours. Of course, Spotify does not contact you, so you will have to keep an eye on the podcast listings yourself. You can also upload your podcast through your regular hosting provider.
Would you like to take advantage of the potential of dynamic ads on Spotify to improve your visibility? At Antevenio we have more than 20 years of experience in performance marketing . We help you attract more clients with search engine advertising campaigns based on effective SEM strategies .
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