How programmatic audio will change the game for Spotify

Jana Jakovljevic, head of programmatic for Spotify, the streaming music service, spoke to Campaign US about the importance of targeted ads, the growth of the space, and whether agencies are optimised for programmatic ad buying. Despite its popularity, the Swedish company has lagged behind its competitors — Google Play, Pandora, Apple Music and iHeartMedia — in offering programmatic ad buying for marketers. At first, that option was limited to display and video. Now, the Swedish company is leading the way in programmatic for audio, too, according to Campaign. Here’s what Jakovljevic says about programmatic’s likely impact on the cost of ads on Spotify: “It will allow buyers to run more highly targeted audio campaigns. We will be running a second price auction that means that there is a floor price. Often, in a programmatic auction buyers will bid the value of that user which they will define. So the market will dictate the rate, and that will vary by market. It really depends on how much data the buyer is leveraging, and that could be the data they are leveraging from us or that third-party data. It will cost more if they want to lay over age plus gender plus real-time playlist targeting.”

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