In the ever-evolving landscape of digital advertising, strategy shifts are essential for staying ahead of the curve. Patrick O’Leary, associate director at Kepler Group, recently made a strategic shift by utilizing Spotify’s ad manager for the first time. This move marks a departure from the agency’s previous reliance on Spotify’s hands-on managed services for campaign coordination. O’Leary noted that while managed services are still valuable for larger activations, the ad manager offers flexibility and strategic advantages for day-to-day ad placements.
One of the key benefits of using Spotify’s ad manager is its targeting and performance-oriented capabilities. O’Leary highlighted the ability to dip in and out of Spotify with strategic ad placements, allowing for more flexibility in campaign execution. This shift towards a more self-serve approach reflects a broader trend in the industry towards programmatic advertising, where data-driven targeting and automation play a central role in campaign optimization.
Spotify’s ad-supported revenue saw a 13% increase in the second quarter, reaching $501 million year over year. Podcasts have emerged as a key category for streaming audio and advertising, with programmatic advertising accounting for a growing share of ad deals in this space. According to eMarketer, podcasts are projected to generate $2.28 billion in revenue this year, with 9% of that coming from programmatic advertising. This shift towards programmatic advertising mirrors the broader trend in display advertising, where over 90% of ad deals are conducted programmatically.
The convergence of streaming audio and programmatic advertising is evident in recent partnerships between major players in the industry. Disney and Spotify have opened up ad inventory to Yahoo’s DSP, while Viant reported that streaming audio was its fastest-growing segment in the second quarter. This trend underscores the growing importance of programmatic advertising in the streaming audio space, as advertisers seek more efficient and data-driven ways to reach their target audiences.
Sam Bevan, Spotify’s global head of emerging and scaled advertising, emphasized the platform’s commitment to providing advertisers with options for buying ads based on their preferred objectives. Advertisers can choose to use Spotify’s ad manager for outcome-based buying, or work directly through their preferred DSPs for more customized campaigns. This dual approach reflects Spotify’s efforts to cater to the diverse needs of advertisers in an increasingly complex and competitive digital advertising landscape.
In conclusion, Patrick O’Leary’s strategic shift towards using Spotify’s ad manager highlights the growing importance of programmatic advertising in the streaming audio space. As the industry continues to evolve, advertisers must adapt their strategies to leverage the latest tools and technologies for reaching their target audiences effectively. By embracing new approaches and staying ahead of industry trends, advertisers can maximize the impact of their campaigns and drive better results in an increasingly competitive digital advertising landscape.