Spotify’s global advertising revenue is projected to exceed A$3 billion in 2024, according to recent data from WARC, marking a significant milestone for the audio streaming giant.
As reported by Campaign Asia, Spotify’s ad revenue is expected to reach approximately A$3.07 billion this year, reflecting a 13 per cent year-on-year increase.
This growth is fueled by Spotify’s massive user base, which has now surpassed 600 million, with notable expansion in the Middle East, Africa, and Asia regions.
In addition to audio, Spotify has been increasing its focus on video content, with video streams seeing a remarkable 44 per cent growth over the past year, driven primarily by the popularity of video podcasts.
According to data from Performance Marketing World Spotify’s multi-format campaigns, which combine video and audio, outperform those relying solely on audio. Campaigns leveraging both formats saw a 66 per cent boost in click-through rates and a 27 per cent increase in purchase intent, highlighting the platform’s versatility in advertising strategies.
B&T contacted Spotify for comment but did not receive a response prior to publication.
In June, Spotify took a significant step forward by launching its in-house creative agency, Creative Lab. Alongside this, it introduced a tool called Quick Audio, designed to streamline ad creation by using AI to generate scripts and voiceovers, enabling advertisers to produce Spotify ads quickly and efficiently.
“Every campaign Creative Lab touches is highly customised to each specific brand and business need,” underscoring the agency’s focus on bespoke solutions for advertisers,” said a Spotify spokesperson on Creative Lab’s approach.
