Spotify has reported that its ad revenues increased 29% in Q3 2019 to $189 million.
Ad-supported subscriptions grew 29% to 141 million people. Impressively, the company also grew its paid subscriptions by 31% to 113 million.
Spotify announced that ad revenues were slightly lower than expected after the company moved to Google’s DoubleClick Sales Manager.
The company continues to expand its ad tools and features for marketers via the Spotify Ad Studio. This year, it launched interest targeting and real-time context targeting.
It now also provides deeper stats and insights on overall listens and conversion rates.
Programmatic ad growth dropped to 48% during the third quarter of 2019 versus 65% in the previous quarter.
CFO Barry McCarthy said in a conference call with analysts that the company sold less of its inventory in Q3 (97.5% versus 99.5% in Q2) because some orders had been lost and ads were under-delivered.
Meanwhile, podcast listenership on Spotify was up 39% compared to the previous quarter.
Spotify is currently promoting giveaways of a Google Home Mini device to new and existing Premium subscribers in the US.
Its user base rose by 7% quarter-on-quarter and 30% compared to Q3 2018.