Spotify Launches Clickable Podcast Ads

Spotify Introduces New Call-to-Action Cards for Podcast Advertising

Spotify is launching a novel advertising format specifically designed for podcasters, termed “Call-to-Action Cards,” or CTA cards. This feature leverages Spotify’s streaming ad insertion technology to present a visual advertisement within the Spotify application concurrent with the audio ad playback.

Customization and Functionality of CTA Cards

Advertisers can personalize these cards with their own imagery, text, and interactive buttons. These buttons are designed to prompt listeners to take specific actions, such as “shop now” or other desired responses.

Recognizing that podcast listening frequently occurs while users engage in other activities – walking, exercising, commuting – Spotify is also deploying these CTA cards on both the podcast’s show page and individual episode pages.

Extended Ad Interaction

This expanded availability allows listeners to interact with the advertisement at a later time while browsing the Spotify app. The cards will remain accessible for up to seven days following the initial ad exposure, or until the campaign concludes, whichever occurs first.

Future Development and Interactive Features

Spotify anticipates that this format will evolve beyond simply directing users to a landing page. The company envisions incorporating features like shoppable elements and video integration to enhance interactivity.

Jay Richman, Spotify’s head of Ads Business & Platform, highlighted the cards as a crucial step towards modernizing podcast advertising. He stated that the format will gain increased capabilities over time with the addition of interactive features.

Reporting and Measurement

Advertisers utilizing this new format will gain access to detailed reporting and measurement data. This is made possible through confirmed ad impressions facilitated by Spotify’s streaming ad insertion technology.

The Evolution of Podcast Advertising

Spotify has significantly invested in streaming ad insertion, bringing real-time targeting and reporting to the podcasting landscape. Previously, podcasts delivered via RSS faced technical limitations as downloadable content.

Ads were embedded directly into the audio files, lacking dynamic insertion capabilities. Audio players couldn’t distinguish between program content and advertisements, treating everything as a single file.

Streaming ad insertion pauses the content, inserts the ad dynamically, and then resumes playback. Despite this, listeners retain the ability to skip ads if desired.

Strategic Acquisitions

In 2020, Spotify acquired Megaphone for $235 million to expand streaming ad insertion capabilities. This acquisition extended reach to publishing partners through the Spotify Audience Network, including creators using Anchor.

More recently, the acquisition of Whooshkaa brought this technology to radio broadcasters seeking to distribute their audio content as podcasts.

Enhanced User Experience and Ad Relevance

Because streaming ad insertion accurately identifies ad placement, Spotify can simultaneously display the corresponding CTA card. This provides a more convenient experience for listeners seeking products or services mentioned during the podcast.

They no longer need to remember URLs or coupon codes shared by the host.

Impact on Subscribers

However, the introduction of CTA cards increases the perception of Spotify as an ad-supported platform. Even Premium subscribers will encounter these ads on both show and episode pages, potentially creating a more distracting experience.

Early Results and Advertiser Feedback

Spotify tested the new CTA cards with advertisers like Ulta Beauty prior to launch. Christine White, Ulta’s head of Content, Social, & Integrated Marketing, reported reaching approximately 250,000 unique Spotify listeners.

Around half of those listeners viewed at least one CTA card after hearing the audio ad, including those who encountered the card while browsing the app.

Expanding Podcast Interactivity

Spotify views CTA cards as a step towards greater podcast interactivity. The company is also exploring voice commands, audience polls, and Q&A sessions to enhance listener engagement.

Furthermore, Spotify is expanding access to video podcasts through its Anchor platform, allowing creators to incorporate video elements into their shows.

Ease of Implementation

Spotify assures creators that no additional effort is required to enable the new CTA cards. They will initially be available on select Spotify Original & Exclusive podcasts in the U.S., starting today.