Spotify has announced the launch of Streaming Ad Insertion (SAI), its new proprietary podcast ad technology that powers Spotify Podcast Ads. Podcast consumption increased 39% from Q2 to Q3 last year on Spotify.
Its SAI technology will leverage streaming to deliver Spotify’s full digital suite of planning, reporting, and measurement capabilities for Spotify original and exclusive podcasts. This includes data such as actual ad impression, frequency (number of times a listener heard the ad), reach and anonymised audience insights (age, gender, device type). This is the first time this type of data is available for advertisers and podcast creators.
Until now, podcast advertising has experienced many challenges because the medium is still largely downloaded via static RSS feeds. But the shift in consumption from downloads to streaming has opened the door for advances in data-driven podcast advertising, and Spotify is moving beyond these constraints to reimagine what's possible for this powerful and intimate medium.
With this technology, Spotify is offering the intimacy, quality and efficacy of traditional podcast ads with the precision and transparency of modern-day digital marketing. In short, it is keeping what podcast listeners, creators, and advertisers love about podcast ads and making the medium addressable for digital advertisers.
Footwear brand Puma was among its partners to test SAI and the results were major. They ran host-read ads during Spotify original podcast, Jemele Hill is Unbothered, and the ads resulted in ad recall lift by +180%.
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