New York, NOV 10 2020: Sweden-based digital music platform Spotify to acquire podcast advertising and publishing platform Megaphone for $235 million.
For podcast publishers, the acquisition will unlock innovative tools that will help them earn more from their work. This includes the opportunity to opt-in to have their content monetized, matching their listeners with even greater demand from advertisers.
Spotify will soon make Streaming Ad Insertion available to all podcast publishers on Megaphone, the first time this technology will be made available to third-parties. With Streaming Ad Insertion, podcast publishers will be able to offer more valuable podcast audiences to advertisers based on confirmed ad impressions.
Spotify has 1.9 million podcasts including biggies such as “The Michelle Obama Podcast” and “Mama Knows Best” by influencer Addison Rae.
“We are still in the early chapters of the streaming audio industry story, but it is absolutely clear that the potential is significant,” said Dawn Ostroff, Chief Content & Advertising Business Officer, Spotify. “We look forward to Megaphone joining Spotify on our mission to accelerate smarter podcast monetization for advertisers and podcast publishers powered by a scaled audience and state-of-the-art technology.”
“We are incredibly excited to join Spotify to help advance the podcast medium for publishers and advertisers alike,” said Brendan Monaghan, CEO, Megaphone. “We believe that Megaphone and Spotify’s shared value in innovation will drive the podcast ecosystem forward around the world.”
Since last year, Spotify has spent hundreds of millions of dollars to acquire companies like Gimlet Media and Ringer, the sports and entertainment podcast network founded by sportswriter Bill Simmons.