Highlights for advertisers from Spotify’s Q1 2022 earnings
This week, Spotify released our first quarter 2022 financial performance. As our CEO and Co-Founder Daniel Ek said, Spotify’s business exhibited strength and resiliency in Q1: The platform now has 422M MAU globally (up 19% YoY), of which 252M are ad-supported MAU. As we move further into 2022, Spotify Advertising’s mission remains the same—to modernize audio advertising globally in order to deliver greater impact for advertisers, while fueling growth for creators.
Here are the top highlights from Q1, featuring opportunities for advertisers on Spotify:
1. Paving the way for the future of podcast advertising.
This quarter, Spotify launched the interactive podcast ad format: call-to-action cards in the U.S. CTA cards are clickable, interactive companion display units for podcast ads. They combine visuals and customizable text to deliver a clear, simple message, along with a first for podcast ads: a clickable call-to-action. This means that now, in addition to driving upper-funnel campaign results like awareness and recall, advertisers can drive conversions, too.
CTA cards are powered by our Streaming Ad Insertion (SAI) ad technology, and they’re designed to be seen while your ad is playing and after your ad has been heard. We’re really excited by early results. As we’ve increased the number of places where listeners can find CTA cards in the Spotify app, we’ve seen outcomes like website visits increase accordingly – delivering increased ROI for our advertisers.
2. Upleveling podcast measurement for advertisers and insights for publishers with the acquisition of Podsights and Chartable.
With our recent acquisition of Podsights, Spotify will be able to help advertisers understand how podcast ads drive actions that matter to their businesses. For example Saks Fifth Avenue used SPAN’s behavioral targeting to drive luxury shoppers to their website, driving a conversion rate 3X higher than the Podsights industry benchmark Learn more about the acquisition in our interview with Podsights Founder and CEO Sean Creeley.
We also further enhanced Megaphone’s suite of tools with the acquisition of Chartable. The integration of their audience insights and cutting-edge promotional tools like SmartLinks and SmartPromos will make it easier for publishers to turn audience insights into action, expanding their listenership while ultimately growing their businesses.
3. Investing in new content and experiences is fueling user growth and engagement.
MAU growth was particularly strong in our Gen Z audience, which was fueled by successful product feature launches like Blend and Lyrics. The launch of Lyrics is particularly exciting for advertisers, because now, advertisers who purchase Mobile Overlay will see a portion of their ads delivered in the Lyrics environment.
On the content side, Batman Unburied, created in partnership with Warner Bros. and DC, will premiere simultaneously in nine global markets on May 3. We are excited to bring this iconic franchise and the legacy of Batman to our hundreds of millions of listeners around the world. All of these new content and experiences are governed by Spotify’s platform rules and delivered in a brand-safe environment.
4. Empowering creators and connecting fans through new partnerships and programs.
Spotify and FC Barcelona announced a first-of-its-kind partnership to bring music and football together, where Spotify will become the official audio streaming partner. Additionally, Spotify’s Sound Up Program, which is available in 12 markets and continues to bring diverse voices to podcasting by providing participants with educational opportunities, resources, and access to industry experts. We also enriched our longstanding Spotify Singles program with original tracks by six Best New Artist GRAMMY nominees. As listeners are tuning in to these culture-driving programs, advertisers have a unique opportunity to reach them. Check out our guide on how to create inclusive audio advertising to meet listeners where they are.
5. Giving businesses of all sizes the tools to succeed with audio.
Audio is our thing. Now, we can make it yours too. In early 2022, Spotify launched the Spotify Advertising Academy to give advertisers a crash course on all things audio. Anyone can now take our free, interactive training courses and become a certified expert on digital audio ads. Learn more about how digital audio advertising (including podcast advertising) can revolutionize how you reach and engage your audience, whether you’re new to audio or a seasoned pro.
Interested in reaching Spotify listeners all over the globe? Connect with a Spotify rep, or get started immediately with Spotify Ad Studio, our self-serve ads manager.