Spotify has acquired Megaphone, a podcast advertising and publishing firm.
The deal worth $235 million will enabled advertisers of the music streaming service to use a range of new and exciting tools to reach listeners.
The acquisition could improve reach and scale of ad campaigns on Spotify through the Megaphone marketplace.
Publishers will also be given additional tools to make more money from their podcasts.
“We are still in the early chapters of the streaming audio industry story, but it is absolutely clear that the potential is significant,” said Dawn Ostroff, Chief Content and Advertising Business Officer at Spotify. “We look forward to Megaphone joining Spotify on our mission to accelerate smarter podcast monetisation for advertisers and podcast publishers powered by a scaled audience and state-of-the-art technology.”
Publishers on Megaphone will gain access to the Spotify Streaming Ad Insertion platform. That’s essentially Spotify’s own podcast advertising technology platform.
“We are incredibly excited to join Spotify to help advance the podcast medium for publishers and advertisers alike,” added Brendan Monaghan, CEO at Megaphone. “We believe that Megaphone and Spotify’s shared value in innovation will drive the podcast ecosystem forward around the world.”
Podcasts seem to hold tremendous success for Spotify.
In 2019, the app acquired three podcast platforms for a total $400 million.
Research by Claritas recently showed that podcast ads increased brand awareness by up to 79% while lift rates were 30x higher than those of other media.