Native advertising is one way to create an ad that doesn't feel jarring. Here's a bit more about what it looks like, why it converts, and how to bring the approach into your digital audio or video ad strategy.

What is native advertising?

Native advertising fits the form or function of the media format where it appears. It's all about reaching audiences where they already are, in ways they already consume content—an audio ad narrated by your favorite podcast host, for example.

Today, native ads appear in social feeds, on video platforms, in traditional and new media outlets, and in digital audio experiences. Brand interest in these ads has boomed over the past decade. And it's still on the rise: Experts forecast that advertisers will spend more than $80 billion on native display ads on social media, while they'll dedicate less than $30 billion to nonsocial native display ads in 2024.¹

Why should brands consider native advertising?

It's a fact of business: To grow your audience, you have to market to it. Native ads create a cohesive user experience—one that can result in real conversions. Studies have found that native ads usually garner higher click-through rates (CTRs), as well as longer average engagement times, than standard display ads.²

Spotify has emerged as a powerhouse for native advertising in the digital audio and video space. Our users demonstrate exceptional engagement, regardless of whether they're actively viewing their devices or simply listening. The platform has witnessed a substantial uptick in video interaction, with a 44% year-over-year (Y/Y) increase, primarily fueled by Gen Z users (who are showing almost double the engagement with video content in 2024 compared to 2023).³

Spotify's advertising ecosystem is crafted to capitalize on this heightened user attention. By harnessing advanced streaming technology and proprietary user data, Spotify strategically delivers ads when audiences are most receptive. For instance, video advertisements are exclusively displayed when the application is confirmed to be visible, to speak to users during "screen-based" moments when they're actively engaging with their devices.

Spotify ads—which encompass audio, video, and more—are a great fit for native advertising

In the digital era, the delivery of native ads has evolved. For one, it's gotten a lot more tailored. Themed playlists and podcasts provide a fitting backdrop for ads relevant to their genre or subject matter. In fact, our research finds that 93% of engagement with Spotify content translates directly to engagement with ads on Spotify.⁵

Spotify users enjoy different music or podcasts depending on what they're doing—like listening to a heart-pumping playlist during a workout session or a mindfulness podcast on their way to an important work meeting. An effective native ad is all about creating content that easily blends in with these screenless moments.

For instance, MandM recently advertised on one of the UK's best-known podcasts, Parenting Hell, to reach its target audience of parents aged 35 and over. The brand tapped the podcast's hosts—Rob Beckett and Josh Widdicombe—to read ads in their own voices, creating a more personalized approach. This campaign drove impressive results, including a 674% return on podcast ad spend and a conversion rate five times higher than Spotify benchmarks.

In another example, BT showcased their Hybrid Broadband product through host-read ads on popular Spotify podcasts like Brydon & and JaackMaate's Happy Hour. They also leveraged Spotify's call-to-action (CTA) cards, making their podcast ads interactive for the first time. This campaign resulted in a 19% lift in agreement that BT Broadband offers "unbreakable WiFi" among Brydon & listeners and a 21% lift in consideration of BT Hybrid Broadband among Wrighty's House listeners.

Native video ads on Spotify

Spotify's Opt-In Video format serves video ads in the Now Playing View (NPV), where album artwork typically appears. This format leverages machine learning to understand users' habits and assess when they're more likely to view an ad, creating a non-interruptive—and more native—viewing experience for those screen-based moments when Spotify users are actively interacting with their devices.

For example, Monge, an Italian pet food brand, used Opt-In Video ads to celebrate its 60th anniversary and introduce its "Monge Gift" line of superfood-infused pet treats. The campaign achieved an Expansion Rate of 0.51%, surpassing Spotify's benchmark by 22%.