This $235 million acquisition is expected to strengthen Spotify’s hold on the growing advertising industry.
Swedish-based audio streaming and media service provider Spotify has spent millions of dollars, over the past two years, to grasp a large share of the podcast industry. But, they aim beyond owning and producing podcasts. Earlier this year, the company launched Streaming Ad Insertion (SAI) to enable advertisers to target audiences through live streams of Spotify original podcasts and better measure their reach.
The Spotify-Megaphone acquisition deal would extend SAI’s targeting and measurement capabilities to publishers beyond Spotify’s network for the first time. It would not only attract more advertisers to the platform but would also enable Spotify to be a part of the highly growing industry.
Spotify’s Jay Richman said, “By acquiring Megaphone, we’re able to bring scale.” Megaphone’s clientele includes most major advertisers, which could be beneficial for Spotify’s growth.
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