John Trimble, Pandora’s Chief Revenue Officer, explains, “It’s clear the future of advertising is digital audio. Although they already offered their inventory of programmatic advertising with display and video, they have not provided audio until now. Pandora announced this year they would be offering their own audio inventory programmatically. Spotify was until recently the only player in the music industry getting involved in RTB auctions. In the end, Adidas Originals saw 30,000 ad page visits using Spotify Ads. And, it works for brands too.Īdidas Originals used multiple ad formats on Spotify to drive awareness for their new All Originals campaign. The launch of the Ad Studio paid off, and in 2017, RTB audio ads made up 18% of Spotify’s ad-supported revenue. They could instead purchase music using a real-time bidding (RTB) auction. This meant that users could create programmatic ads using Spotify’s music library without paying exorbitant single-use or license fees. Spotify released their beta ad platform, Spotify Ad Studio, in 2016, becoming the first streaming service to allow users to bid on audio ads in near-real time. Spotify and Pandora Rule the Audio Ad Business Let’s look at the features of both Spotify and Pandora’s real-time audio ad bidding. Pandora recently announced they are ready to compete for real-time bidding of audio ads with Spotify. New kid on the (advertising) block, Pandora needed to come up with an easier option to appeal to advertisers. They have since been leading the way in offering display ads to marketers through real-time bidding (RTB) solutions.
They spearheaded the launch of programmatic digital platforms in 2016. After the Bruno Mars’ Grammy performance of “Finesse” with Cardi B, his song was streamed 2.3 million times.Īnd companies like Spotify are already taking advantage of this growing trend. After Prince went live on Pandora, 686,348 people added a Prince station on Pandora in just one day. Last year, audio ad revenue spiked from $425 million to $603 million, representing a 42% increase in one year!Īudio ads are appealing to advertisers. 84% of advertisers say digital audio will play a bigger role in media plans in 2018. Audio advertising is booming thanks to music streaming services.
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