The launch of the SoundCloud Go subscription tier may be 2016’s big news story for SoundCloud, but the company isn’t leaving its advertising efforts to languish.
Yesterday, SoundCloud said that it will launch video ads in the US, which has traditionally been the lead market for the company’s commercial initiatives. The ads will be shown within SoundCloud’s mobile app. “The ads will pop up between tracks, when your screen is on and the SoundCloud app is actively engaged in the foreground,” reported CNET. “In other words, you’ll see video ads when you’re actually using it, not when SoundCloud is playing in your pocket.”
As SoundCloud Go launched in March, co-founder Eric Wahlforss told Music Ally that the company was committed to better monetising its free tier. “We think that our ads business is actually doing great: we’ve had the ads platform up and running in the US for over a year and a half, and it’s doing tremendously well. The ad revenue is scaling up rapidly quarter-on-quarter,” he told us. That bullishness was mirrored by CEO Alexander Ljung when he spoke to Music Ally in May. “There’s a lot of other people that won’t be in a subscription, and they’re really valuable as well. They love music, and through many different forms of advertising we can generate huge amounts of revenue from them as well,” he said.