All Australian Spotify listeners who are streaming free music, will now be able to do so, with the added ability to skip ads, starting today. With Choon recently changing the game for music streaming with its launch of monetized playlists, Spotify is not far behind. With this announcement Spotify is the first free music streaming service that allows users to skip ads.
How does this new feature work?
Spotify has launched a feature with Active Media. This allows users to choose if they want to hear, see or skip an ad. This is a first of its kind audio innovation, which provides Australian Spotify listeners with the power to choose, if they want to listen or watch or skip an ad entirely.
Let’s understand how this helps the listeners and advertisers. With Active Media, users can choose if they want to hear or view the ad or skip it entirely; while advertisers only pay if a user listens to or watch an ad to completion. This module also helps advertisers understand what kind of ads do users prefer or like and create a more personalised experience with ads.
The Spotify head of sales for Australia and New Zealand – Andrea Ingham, adds by saying that, “Active Media is a win-win for listeners and advertisers; listeners benefit from an improved experience, allowing them to choose which ads they want to engage with, and in turn, we can offer advertisers better cut through and ROI.”
We definitely see an opportunity in audio innovation as there is an increase in the screen less moments, i.e. users are now listening to music during commute, in the gyms, while cooking, which makes reach and engagement of audio ads for consumers through Active Media more tangible.
While we have not yet heard of when this innovation will start rolling globally, it is going to be interesting to see how users react to audio innovation of ads. Ingha also believes that “While Active Media certainly evolves our video products for today, it will redefine the audio format for tomorrow.”
It is going to be interesting to see how users adapt to this format. With this announcement, Spotify has also launched another initiative namely – ‘Be Heard’. This is essentially an invite only initiative aimed to challenge Australia’s top creative agencies.
Spotify has partnered with Cummins&Partners in Sydney, Ogilvy Melbourne and Isobar Sydney, for clients Pernod Ricard, AAMI Insurance and Pay Pal respectively. Together, Spotify and the agencies will re-imagine what audio can be, by creating innovative concepts by making use of audio advertising.