News & Insights

Highlights from Spotify’s Q4 2023 earnings

Following the release of Spotify’s Q4 earnings report, we recap the highlights for Spotify Advertising.

This week, Spotify released its fourth quarter 2023 earnings report to cap off a year of exceptional growth, with all KPIs meeting or exceeding guidance.

Our total number of monthly active users (MAU) increased to 602M globally (up 23% YoY)—representing the second largest Q4 net addition performance in our history, and contributing to a record year of net additions totalling 113 million.1

Now, 379M MAUs are ad-supported (up 28% YoY), while ad-supported revenue has increased by 12% YoY. This was driven by double-digit growth across both music and podcast advertising, as well as increased takeup of the Spotify Audience Network.2

Here are our top highlights from Q4 2023—and some thought starters to help you put your best foot forward in 2024.

1. Spotify Wrapped for Advertisers highlights key audience insights and Spotify Advertising trends

Each year, Spotify Wrapped lets people dive into their own streaming trends and share them with their closest friends and the world. For the 2023 edition, more than 225 million MAUs engaged with Wrapped content (up more than 40% YoY)3 with strong YoY growth across all regions and demographics.

Amidst the excitement, we brought marketers their own version: 2023 Wrapped for Advertisers. From nostalgic listening to podcast popularity and the combined power of audio and video ads, the insights give advertisers plenty of food for thought as they consider creative approaches to their advertising strategy in 2024.

2. Spotify Audience Network expands to five new markets, with new contextual targeting features to improve precision and control for brands

In November 2023, we expanded the Spotify Audience Network into five new markets—India, Japan, Brazil, Mexico, and Sweden—bringing scaled, audience-based podcast buying to advertisers in these markets for the first time, and the opportunity for podcast publishers and creators in these markets to effectively monetize their content through podcast ads.

We also released new contextual targeting features in Germany, France, Italy and Spain, enabling local advertisers to run ads across podcast episodes that cover topics most relevant to their business objectives. Powered by AI, contextual targeting helps your message reach the right people at the right moments. Find out more here.

3. Spotify partners with Warner Bros. Discovery to bring slew of leading podcast titles to the Spotify Audience Network

In December 2023, we unveiled our new strategic partnership for podcast distribution and monetization with Warner Bros. Discovery—giving advertisers a direct line to engaged listeners of Warner Bros. Discovery podcasts such as CNN’s All There Is with Anderson Cooper and WBD Sports’ The Steam Room via the Spotify Audience Network.

By running podcast ads on the Spotify Audience Network, you can reach your audience wherever they choose to listen to their favorite shows, both on and off Spotify.

4. Podcast Trends Report further cements the influence of podcasts and benefits of podcast advertising

Our latest Podcast Trends Report dropped in November, covering the cultural moments of 2023 that made podcast listeners tune in. The report highlights the surge in podcast listenership and how podcasts act as catalysts for deeper, more meaningful engagement that extends cultural conversations at large.

To level up your next podcast advertising campaign with these insights and helpful advertising tactics, download our 2023 Podcast Trends Report.

5. Culture Next 2023 spotlights the latest Gen Z trends on Spotify—and how they’re driving culture at large

Besides Spotify Wrapped, Q4 '23 also marked the release of our annual youth trends report, Culture Next. We examined the habits, behaviors and opinions of Gen Zs who drive culture on Spotify, revealing insights that could fuel the advertising strategies of any marketer with ambitions of reaching young audiences in 2024—and remaining culturally relevant in a constantly shifting landscape.

Download our 2023 Culture Next report, here.

Sources: 1, 2, 3. Q4 2023 Update, Spotify, February 2024

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