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Spotify’s ad gap makes audio attractive to brands

If you’re not planning to run audio ads in 2025, you should start now 👇

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Young Americans spend over half of their daily listening time with ad-supported digital audio, whether it's podcasts or music streaming. I guess similar picture in Europe.

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Spotify reigns supreme.

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With 32% of the global streaming market and rapidly growing monthly active users, it’s the king of audio.

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In 2024, ad-supported users grew faster than premium ones, now making up 62% of its total user base (vs 56% in 2020).

Advertising revenue are up 7% year-on-year.

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Until recently, Spotify relied heavily on direct ad sales. But now, they’re expanding their programmatic solutions in partnership with The Trade Desk.

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And this is where the opportunity for brands arises!

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Advertisers can now reach 425 million ad-supported users in a programmatic and efficient way.

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And here’s the best part:

recording audio ads is cheaper than ever with tools like ElevenLabs and its AI-generated voices.

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And if this wasn't enough,

there's a massive gap in the market 💡.

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Audio consumption is growing, but it’s still under-monetised.

‍WARC estimates that while audio accounts for 24.5% of all ad-supported media consumption in the US, it represents only 8.4% of ad spend. 🤯

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This means less competition, lower costs and more opportunities "to be heard".

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Audio-only social media (like Clubhouse) tried and failed.

Spotify took it all. It now owns everything audio, user-generated music, podcasts, even audiobooks.

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In this landscape, music becomes "content" and musicians become "creators", just like YouTubers and podcasters.

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While this might not be good news for musicians, it is great news for advertisers!

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Do you have experience with audio ads?

Stacked bars show Spotify reaching 688 million users and €15.7 billion revenue in 2024, with premium producing 88% of revenue.
Donut chart of US adults aged 18–34 shows radio at 47%, podcasts 32%, streaming audio 20% and satellite radio 1% of ad-supported audio time.
Bars show weekly podcast listening among Americans aged 12+ rising from 26% in 2022 to 34% in 2024.
Bars show monthly online audio listening among Americans aged 12+ rising from 47% in 2014 to 76% in 2024.
Stacked bars show Spotify reaching 688 million users and €15.7 billion revenue in 2024, with premium producing 88% of revenue.