Spotify has announced the acquisition of US-based podcast advertising & publishing firm Megaphone for $235 million.
Spotify is today’s one of the most popular audio & music streaming apps with more than 299 million monthly active users and 144 million premium subscribers. There are over 4+ billion playlists on the platform as well as 60 million tracks and 1.9 million podcast titles. During Q3, 22% of its total monthly active users engaged with podcast titles.
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The company released a blog post announcing the acquisition of US-based podcast ad-tech firm Megaphone for $265 million, to allow the advertisers on the platform to access its advanced tools and reach podcast listeners more effectively.
”Together, Spotify and Megaphone will offer podcast publishers innovative tools that will help them earn more from their work. This includes the opportunity to opt in to have their content monetized, matching their loyal listeners with even greater demand from advertisers.” said the company in the blogpost. ”And we’re excited to share that, once we come together, we will soon make Streaming Ad Insertion available to podcast publishers on Megaphone, the first time this technology will be made available to third-parties. That means that podcast publishers will be able to offer more-valuable podcast audiences to advertisers based on confirmed ad impressions (i.e., that their ad was actually heard).”