Spotify Rolls Out Programmatic Ad Buying
July 20 2016 - 11:10AM
Dow Jones News
STOCKHOLM—Swedish music-streaming company Spotify AB on
Wednesday launched programmatic ad buying for all its markets,
allowing advertisers to target its 70 million nonpaying users by
age, gender, genres and playlists in real time.
Spotify said it is joining with online-advertising technology
companies AppNexus, Rubicon Project and The Trade Desk to offer ad
buyers an online bidding environment with access to Spotify's data
on its users' listening habits and demographics, including age,
gender, location and language.
Through the platform, advertisers in Spotify's 59 markets can
automatically tailor ads for certain audiences in real time, such
as listeners who are commuting, working out, dining, dating,
partying or relaxing.
Spotify's move comes as it is attempting to raise its
advertising revenue, facing increasing competition from Apple
Inc.'s streaming service, Apple Music, which launched little over a
year ago but already boasts 15 million paying subscribers, compared
with Spotify's 30 million.
While Apple offers only a paid subscription, Spotify has a free
service with 70 million users who sit through 15- to 30-second ads
between songs. Both Apple and Spotify charge around $10 a month for
a paid subscription.
Stockholm-based Spotify nearly doubled its revenue in 2015 to
€1.95 billion ($2.15 billion), but nearly 90% of that came from
paid subscriptions and only €195.8 million from advertising.
Spotify reported a 2015 net loss of €173.1 million.
(END) Dow Jones Newswires
July 20, 2016 10:55 ET (14:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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