Spotify has launched what it says is the first self-serve platform for marketers to set up and manage audio ad campaigns.
Advertisers can choose to upload preproduced ads or upload a script and have Spotify create ads with background music and voiceover in the new Spotify Ad Studio platform. Advertisers also provide an image to display while their ads play on the streaming music service. The platform supports 15- or 30-second audio ads that play during programmed breaks between songs.
Streaming audio, which IAB broke out for the first time in its 2016 annual survey of the US internet advertising market, topped $1.1 billion in ad revenue in last year, according to the report. Spotify’s self-serve advertising platform is designed to bring more small-to-midsize businesses onto Spotify, which claims an audience of more than 70 million users.
Unlike traditional radio, advertisers can target audience segments meeting various criteria. In addition to demographic, location and device segmentation, advertisers can select audiences based on music genre, as well as by keywords used in user-generated playlists.
Music labels, artists and promoters can also target their fan lists on Spotify through the platform for the first time using Ad Studio.
Instead of reach estimates, Spotify provides an estimated number of ads that will run when an advertiser selects targeting rather than reach. There is no ability, at this early stage at least, to see or control ad frequency, but reach data is available in the reporting dashboard.
Spotify launched programmatic advertising with AppNexus, Rubicon Project and The Trade Desk last year. The self-serve platform is now in open beta in the US.