Spotify is doubling down on content in quest to become the largest audio platform

James McDonald

An overview of Spotify's global revenue by subscriber type and gross margin between 2014 and 2018.

Spotify is investing in the creation of original podcast content through its in-house unit Spotify Studios, in a bid to aggregate and retain listeners. The acquisitions of podcast specialists Gimlet Media, Anchor and Parcast give Spotify expertise as it aims to grow its ad business and margins.

Spotify hopes to monetise podcast ad audiences in two ways: firstly, through brand sponsorship of podcast content, and secondly, via programmatic advertising, which accounts for 12% of Spotify’s US ad revenue (well below the global rate of 65.3% for all online display advertising).

Aside from informing ad targeting, user data can...

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