Spotify’s head of advertising business Lee Brown has signalled the company’s plans to go on a hiring spree outside North America to bolster its ad revenues.
“We are increasing our ads business marketing workforce by over 70% in Europe, Australia and Canada… and that’s off a pretty sizeable base,” he told the Financial Post. “We’re investing in our advertising business. As far as long-term strategy, I think gone are the days of advertising being less than 10% of our overall revenue.”
Ads accounted for 11.8% of Spotify’s revenues in the second quarter of this year, up from 6.9% in the corresponding quarter last year. Those revenues grew by 110% year-on-year, in contrast to 17% growth in subscription revenues.
The interview came as Spotify expanded its Megaphone podcast advertising platform to Germany, France, Spain and Italy as part of its European expansion.
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