The audio streaming platform hosts over 700,000 podcasts according to its February earnings report.
The acquisition of podcast platforms like The Ringer, Parcast, Gimlet, and Anchor indicates Spotify's broader ambitions to monetise its podcasts. The Swedish company has introduced a new ad streaming and insertion tool called SAI to capitalise on its 271-million active userbase. SAI can dynamically insert personalised ads into all podcasts, including third-party companies.
SAI is currently available for original and exclusive podcasts within Spotify, with the company hoping to extend it to third-party podcasts as well. While over half of Spotify's users are on the ad-supported tier, only 12% of the company's revenue comes from them.
Third-party podcasts can also leverage host-read ads that can be seamlessly inserted in the podcasts. Spotify's global head of advertising Lee Brown says, "We're making aggressive strides in that marketplace".
[3 minute read]