While Spotify’s subscription price rises have grabbed headlines recently, the company remains keen for advertising to generate a bigger share of its revenues.
That’s an ambition that will surely be helped by its latest partnership: with global ads giant WPP.
The deal will see WPP’s brand clients getting early access to Spotify’s new ad products and tech. In return, Spotify will be “the first digital audio platform to be integrated directly into WPP’s products and solutions” as well as collaborating with the agency on research.
The emphasis will be on persuading more brands to devote more of their ad budgets to digital audio, and Spotify specifically.
Last quarter, Spotify’s €404m of ad-supported revenue accounted for 12.7% of its overall turnover.
That share has been growing slowly – it was 9.7% five years ago, in Q2 2018 – but Spotify has been open about its ambition to grow that share to 20% in the coming years.