Spotify recently made a new acquisition in the podcast market. This time the leader of music streaming welcomes the company Megaphone bought for $ 253 million.
Spotify continues to sharpen its weapons and today has an exclusive podcast network, podcast creation software, hosting company, and monetization technology.
Spotify strengthens its advertising tools
Megaphone provides content creators with a platform enabling them to connect to advertisers for thematic advertising targeted to the audience. Podcasts are hosted directly on Megaphone and professionals have a range of tools allowing them to have a vision of their campaigns. They can establish a production schedule and synchronize it with the advertisements.
And that’s good, since concerning advertising, Spotify already has a technology to insert them in real-time. Concretely, the Spotify algorithm analyzes the audio stream and is able to determine the nature of the advertisement to be injected.
For the first time, Spotify will open its technology to share it with Megaphone. This means that if the producers of content on Megaphone want to be able to take advantage of it for their shows, they will have to pay. For Spotify, it is therefore a question of expanding its portfolio of customers.
” I find that there has been very little innovation, especially in podcasts, when it comes to better targeting advertising to an audience and allowing creators to monetize their products on a larger scale “, explains Paul Vogel, CFO at Spotify.
2021, the podcast boom on Spotify?
Recently we learned that Spotify could consider offering a subscription exclusively for podcast fans. The company surveyed a few people for an offer between $ 2.99 and $ 7.99 per month.
The Swedish company has also increased its acquisitions in recent years with The Ringer, Anchor, Gimlet, or Parcast. Spotify has also signed exclusive content with big names like Obama or Lady Gaga.