There’s been yet another big move today in the podcast space, as Spotify acquired Megaphone for its podcast advertising technology. The acquisition for $235 million continues Spotify’s three-year buying spree in the podcast market and further solidifies its dominant position here.
Spotify Adds Megaphone To Bolster Monetization Of Its Podcast Content
In addition to giving Spotify’s web of podcast platforms (including Gimlet, Anchor, Parcast, The Ringer, and more) a set of robust advertising tools, the acquisition will also give current Megaphone users access to Spotify’s new Streaming Ad Insertion tech, which enables more targeted ads in a medium that has traditionally struggled with targeting and measurement. For advertisers, this also opens up a path to Spotify’s exclusive content via Megaphone.
But big questions remain for Spotify: With nearly $1 billion in investments to build an end-to-end podcast offering, how will it reap returns from those investments? What moves will competitors such as SiriusXM and iHeartMedia make to compete with Spotify’s repertoire of tools? And will major tech players like Amazon and Apple build out their podcast content?
Forrester’s Podcast Research Can Help Marketers Navigate This Evolving Space
In our recent podcast research, we noted that there would be further consolidation in this space that could result in new walled gardens. As we head into 2021, we’ll be watching this space for more consolidation. In the meantime, we have reports to help guide you through this rapidly maturing space:
- The State Of Podcast Advertising: Engaging, But Still Emerging. This report is a deep dive into the world of podcast advertising — why it’s working for marketers and what’s holding it back.
- Build A Podcast To Engage Your Customers. Branded podcasts of all kinds might be trendy, but they might not be right for you. This report will help you determine whether a branded podcast suits your needs and, if so, how to do it.
- Unpacking Consumer Trends In Online Audio. This quick piece will help marketers understand key trends in consumption of online audio and podcasts: Who listens, when, and what does it mean?
And of course, if you have questions about your podcast advertising strategy or building your own branded podcast, set up an inquiry with us.