Spotify podcasts: Spotify is reportedly excluding white noise podcasters from an advertising program
This action will impact podcasters' profits and boost the company's net performance, offering a more efficient outcome.
Spotify has reportedly had a complicated relationship with white noise podcasters for some time, and now the company appears to be taking more action against them. According to Bloomberg, white noise podcasters will no longer be eligible for Spotify's Ambassador Ads program starting October 1st.
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Through this program, Spotify pays podcasters to air ads for its own products. Its goal is to attract more people to create shows for the platform.
Previously, Bloomberg reported that some white noise podcasters were earning up to $18,000 (~€16,721) per month, largely due to the advertising fees Spotify pays them. It was recently revealed that the company was considering removing these types of podcasts from its platform entirely, as they were causing a $38 million (~€35 million) loss in its annual net profit.
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According to the report, ambassador ads don't have much of an impact on Spotify white noise podcasts, as their listeners are typically not as engaged as they could be with a conversational or narrative podcast.
White noise podcast creators will still make money through direct support from listeners, subscribers, and automated ads. However, this action is a disruption of a vital source of revenue. On the other hand, simply providing the sound of birds chirping or a thunderstorm can be beneficial for listeners who are simply looking for that audio experience, without being interrupted by someone promoting Spotify’s podcasting tools.
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Additionally, Spotify has increased the threshold for eligibility for Ambassador ads. Podcasts must now have 1,000 unique listeners within 60 days (up from 100) to participate in the program.
Additionally, the company plans to ask more podcasters to join its automated advertising program. Spotify announced that it will share revenue from these ads 50-50 with podcast managers, reversing its previous approach of relying on a fixed price per impression.
Source: engadget.com
