Spotify
Spotify

Spotify allegedly excludes white noise podcasters from ad program

What To Know

  • According to a report from Bloomberg, white noise podcasters will no longer be eligible participants in Spotify’s Ambassador Ads program effective October 1.
  • On the flip side, it may be perceived as a positive development for listeners who seek uninterrupted sounds of nature, such as chirping birds or thunderstorms, without promotional interruptions for Spotify’s podcasting tools.
  • Podcasts are now required to amass a minimum of 1,000 unique listeners over a span of 60 days, a substantial increase from the previous requirement of 100 listeners, to qualify for the program.
  • The company has announced a revenue-sharing arrangement, with podcast operators set to receive 50% of the proceeds generated through these ads.

Spotify has long maintained a complex relationship with creators of ambient soundscapes, commonly known as white noise podcasts. Recent developments suggest that the company is now taking definitive action in this regard.

According to a report from Bloomberg, white noise podcasters will no longer be eligible participants in Spotify’s Ambassador Ads program effective October 1. This program, previously in place to promote the company’s own products, compensated podcasters for endorsing. Its primary objective was to encourage content creation for the platform.

Bloomberg had earlier disclosed that certain white noise podcasters were reaping substantial monthly earnings, some as high as $18,000. This financial windfall was, to a significant extent, attributed to Company’s financial incentives for ad placements.

Recently, it was revealed that these specific podcast genres were causing a staggering $38 million dent in Spotify’s annual gross profit.

The efficacy of Ambassador ads on white noise podcasts, as per the report, has been questionable. Their audience is typically characterized as passive listeners who utilize these audio productions as background accompaniments. Consequently, Spotify was not reaping substantial benefits from these advertisements.

The creators of white noise podcasts will continue to have revenue streams through direct listener support, paid subscriptions, and automated ads. Nonetheless, this decision marks the discontinuation of a significant revenue source for them.

On the flip side, it may be perceived as a positive development for listeners who seek uninterrupted sounds of nature, such as chirping birds or thunderstorms, without promotional interruptions for Spotify’s podcasting tools.

In addition to these changes, Spotify has implemented a more stringent threshold for Ambassador Ads eligibility. Podcasts are now required to amass a minimum of 1,000 unique listeners over a span of 60 days, a substantial increase from the previous requirement of 100 listeners, to qualify for the program.

Furthermore, The Company intends to expand its automated ads program, inviting more podcasters to participate. The company has announced a revenue-sharing arrangement, with podcast operators set to receive 50% of the proceeds generated through these ads.

This marks a departure from Spotify’s previous approach, which entailed flat-rate payments based on impressions.