After witnessing growth in its advertising business during the pandemic, Spotify looks to boost its advertising sales in Europe and elsewhere. The company plans to increase revenue from customers who don’t pay a monthly fee but make up the bulk of its user base.
Lee Brown, Spotify’s Head of Advertising Business, said, “We’re investing in our advertising business. As far as a long-term strategy, I think gone are the days of advertising being less than 10 percent of our overall revenue.” In the same report, Lee also revealed that Spotify has also hired an ad industry executive with 25 years of international experience to lead international sales.
To create a better experience the company is looking to add more tools for advertisers and will make its podcast advertising and publishing platform Megaphone available in Germany, France, Spain, and Italy.
Podcasts have played a significant role in boosting ad revenue. Spotify carried 2.9m podcasts as of the second quarter, up nearly 12 percent from the previous three months. It looks to make more business from this opportunity and plans to invest in building more podcast content. To boost product innovation, create a better advertiser and user experience and subsequently, increase ad sales, Spotify has begun the search for top talent.