Highlights for advertisers from Spotify’s Q3 2021 earnings
This week, Spotify released our third quarter 2021 financial performance — one of our best ones yet. Spotify now has 381 million monthly active users (MAU) globally (up 19% YoY), of which 220 million are ad-supported MAU. As our CEO and founder Daniel Ek said, excitement from advertisers for the podcast industry has grown substantially over the last year, and audio ads are now becoming a bigger part of advertisers’ media mix overall.
Here are the top highlights, featuring opportunities for advertisers on Spotify:
1. Our growing library and enhancements create more opportunities for advertisers to connect with podcast listeners.
At the end of Q3, Spotify had 3.2 million podcasts on the platform (up from 2.9 million at the end of Q2). Globally, we released 100+ Spotify Originals & Exclusives, including an audio content partnership between The Ringer and WWE. The Spotify Audience Network is expanding to include Anchor creators in the U.S., which allows podcast advertisers to reach even more listeners. Additionally, we’ve launched new tools and brand safety controls. Read more in our recent update on the Spotify Audience Network for advertisers.
2. We’re showing advertisers what it means to reach an immersed audience.
This month, Spotify Advertising launched its first-ever global brand campaign, All Ears On You, which celebrates the power of Spotify’s immersive listening experience. The campaign coincides with new research revealing that digital audio is more engaging than radio, TV, and social media. With Spotify’s tuned-in audience, advertisers have a unique opportunity to tap into the power of audio and create breakthrough advertising.
3. Advertisers took their audio campaigns to new creative heights.
Advertisers are tapping into audio to create immersive listening experiences. Disney+ was able to promote Billie Eilish’s new concert film, Happier Than Ever: A Love Letter to Los Angeles, by becoming the first US sponsor of Release Radar — a personalized playlist that reaches listeners as they hear the latest from their favorite artists. General Mills’ beloved cereal brand, Lucky Charms, tapped into audio to reach younger listeners with an original album entitled Magically Delicious. And, in partnership with Katy Perry and Spotify, BEHR Paint launched Music in Color, an interactive audio representation of colors Katy Perry experiences through music. The interactive experience aimed to help listeners discover personalized paint color recommendations through their favorite songs on Spotify.
4. We’re creating programs that elevate diverse voices in the Latinx community.
A few years ago, Spotify created Sound Up, a global program that gives underrepresented podcasters the tools to boost their platforms and build their own shows. Last month, we launched Sound Up Latinx, which focuses on supporting Latinx creators who are creating Spanish-language or multilingual podcasts for an ever-growing U.S. Spanish-speaking audience. And, in honor of Latinx Heritage Month, we launched the Aqui Siempre campaign to support the bicultural Latinx community and the myriad of musical genres it continues to influence. Learn more about how advertisers can elevate diverse voices and build inclusive audio campaigns.
Reach out to your Spotify client partner to learn more about how we can help your brand reach the most immersed audience.
Hear more about our ads business from Dawn Ostroff and Jay Richman on our podcast, Spotify: For the Record.