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January 18, 2019
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Spotify’s increased focus on podcasts in 2019 includes selling its own ads

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Having established itself as a top streaming service with now over 200 million users, Spotify this year is preparing to focus more of its attention on podcasts. The company plans bring its personalization technology to podcasts in order to make better recommendations, update its app’s interface so people can access podcasts more easily, and broker more exclusives with podcast creators. It’s also getting into the business of selling ads within podcasts, as a means of generating revenue from this increasingly popular form of audio programming.

In fact, Spotify has already begun to dabble in podcast ad sales, ahead of this larger push.

Spotify, we’ve learned, has been selling its own advertisements in its original podcasts since mid-2018 year, including in programs like Spotify Original “Amy Schumer Presents: 3 Girls, 1 Keith,” “The Joe Budden Podcast,” “Dissect,” “Showstopper,” and others. With more exclusives planned for the year ahead, the portion of Spotify’s ad business focused on podcasts will also grow.

The company appears to be taking a different approach to working with podcasters than it does with it comes to working with music artists.

Today, Spotify gives artists tools that help share their work and be discovered – it invested in distribution platform DistroKid, for example, and now lets artists submit tracks for playlist consideration. With podcasters, however, Spotify wants to either bring their voices in-house, or at least exclusively license their content.

“Over the last year, we become very focused on building out a great podcast universe,” said Head of Spotify Studios Courtney Holt, speaking at the Consumer Electronics Show (CES) in Las Vegas this week. “The first step was to make sure that we’ve got the world’s best podcasts on Spotify, and integrated the experience into the service in a way that allowed people to build habits and behavior there,” he said.

“What we started to see is that the types of podcasts that really were working on Spotify were ones where they were really authentic voices…so we just decided to invest more in those types of voices,” Holt added.

Spotify’s collection of originals has been steadily growing over the past year. Last August, for example, Spotify nabbed an exclusive deal with the “Joe Budden” podcast, which is aimed at hip-hop and rap culture fans, and launched its first branded podcast, “Ebb & Flow,” focused on hip-hop and R&B. Its full original lineup today also includes “Dissect,” Amy Schumer’s “3 Girls, 1 Keith,” “Mogul,” “The Rewind with Guy Raz,” “Showstopper,” “Unpacked,” “Crimetown” (Its first season was wide, second season is exclusive to Spotify), “UnderCover,” and “El Chapo: El Jefe y su Juicio.”

At CES, Spotify announced the addition of one more –  journalist Jemele Hill is coming Spotify with an exclusive podcast called “Unbothered,” which will feature high-profile guests in sports, music, politics, culture, and more.

In growing its collection of originals, the company found that podcasters who joined Spotify exclusively were actually able to grow their audience, despite leaving other distribution platforms.

For example, the Joe Budden podcast had its highest streaming day ever after joining Spotify.

This has led Spotify to believe that influencers in the podcast community will be able to bring their community with them when they become a Spotify exclusive, and then further grow their listener base by tapping into Spotify’s larger music user base and, soon, an improved recommendation system.

There are other perks for Spotify, too – when users come to Spotify and begin to listen to podcasts, they often then spend more time engaged with the app, it found.

“People who consume podcasts on Spotify are consuming more of Spotify – including music,” said Holt. “So we found that in increasing our [podcast] catalog and spending more time to make the user experience better, it wasn’t taking away from music, it was enhancing the overall time spent on the platform,” he noted.

While chasing exclusive deals to bring more original podcasts to Spotify will be a big initiative this year, Spotify will continue to offer its recently launched podcasts submission feature to everyone else.

With this sort of basic infrastructure in place, Spotify now wants to help users discover new podcasts and improve the listening experience.

One aspect of this will involve pointing listeners to other podcast content they may like.

For instance, Spotify could point Joe Budden fans to other podcasts about hip-hop and rap. It will also leverage its multi-year partnership with Samsung to allow listeners pick up where they left off in an episode as they move between different devices. And it will turn its personalization and recommendation technology to podcasts – including the ads in the podcasts themselves.

“Think about what we’ve done around music – the more understand you around the music you stream, the more we can personalize the ad experience. Now we can take that to podcasts,” said Brian Benedik, VP and Global Head of Advertising Sales at Spotify, when asked about the potential for Spotify selling ads in podcasts.

The company has been testing the waters with its own podcast ad sales since mid 2018, Benedik said. The sales are handled in-house by Spotify’s ad sales team for the time being.

Benedik had also appeared on a panel this week at CES, where he talked about the value of contextual advertising – meaning, ads that can be personalized to the user based on factors like mood, behavior and moments. This data could be appealing to podcast advertisers, as well.

But to scale its efforts around podcast ads, Spotify will need to invest in digital ad insertion technology. Benedik told us Spotify is currently deciding whether that’s something it wants to build in-house or acquire outright.

Spotify’s rival Pandora went the latter route. It closed on the acquisition of adtech company Adswizz in May 2018, then introduced capabilities for shorter, more personalized ads in August. By November, Pandora announced it was bringing its Genome technology to podcasts, which allowed for a recommendation system.

Now Spotify aims to catch up.

The addition of podcasts has reoriented Spotify’s focus as company, Holt said.

“We’re an audio company. We’re trying to be the world’s best audio service,” he told the audience at CES. “It’s a pure play for us. We’re seeing increased engagement; there’s great commercial opportunities from podcasting that we’ve never seen on the platform…And, obviously, exclusives are to give us something that makes the platform truly unique – to have people come to Spotify for something you can’t get anywhere else is the sort of cherry on top of that entire strategy,” Holt said.

Image credits: Spotify

News Source = techcrunch.com

Podcast industry aims to better track listeners through new analytics tech called RAD

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Internet users are already being tracked to death, with ads that follow us around, search histories that are collected and stored, emails that report back to senders when they’ve been read, websites that know where you scrolled and what you clicked and much more. So naturally, the growing podcast industry wanted to find a way to collect more data of its own, too.

Yes, that’s right. Podcasts will now track detailed user behavior, too.

Today, NPR announced RAD, a new, open-sourced podcast analytics technology that was developed in partnership with nearly 30 companies from the podcasting industry. The technology aims to help publishers collect more comprehensive and standardized listening metrics from across platforms.

Specifically, the technology gives publishers — and therefore their advertisers, as well — access to a wide range of listener metrics, including downloads, starts and stops, completed ad or credit listens, partial ad or credit listens, ad or credit skips and content quartiles, the RAD website explains.

However, the technology stops short of offering detailed user profiles, and cannot be used to re-target or track listeners, the site notes. It’s still anonymized, aggregated statistics.

It’s worth pointing out that RAD is not the first time podcasters have been able to track engagement. Major platforms, including Apple’s Podcast Analytics, today offer granular and anonymized data, including listens.But NPR says that data requires “a great deal of manual analysis” as the stats aren’t standardized nor as complete as they could be. RAD is an attempt to change that, by offering a tracking mechanism everyone can use.

Already, RAD has a lot of support. In addition to being integrated into NPR’s own NPR One app, it has commitments from several others that will introduce the technology into their own products in 2019, including Acast, AdsWizz, ART19, Awesound, Blubrry Podcasting, Panoply, Omny Studio, Podtrac, PRI/PRX, RadioPublic, Triton Digital and WideOrbit.

Other companies that supported RAD and participated in its development include Cadence13, Edison Research, ESPN, Google, iHeartMedia, Libsyn, The New York Times, New York Public Radio and Wondery.

NPR says the NPR One app on Android supports RAD as of now, and its iOS app will do the same in 2019.

“Over the course of the past year, we have been refining these concepts and the technology in collaboration with some of the smartest people in podcasting from around the world,” said Joel Sucherman, vice president, New Platform Partnerships at NPR, in an announcement. “We needed to take painstaking care to prove out our commitment to the privacy of listeners, while providing a standard that the industry could rally around in our collective efforts to continue to evolve the podcasting space,” he said.

To use RAD technology, publishers will mark within their audio files certain points — like quartiles or some time markers, interview spots, sponsorship messages or ads — with RAD tags and indicate an analytics URL. A mobile app is configured to read the RAD tags and then, when listeners hit that spot in the file, that information is sent to the URL in an anonymized format.

The end result is that podcasters know just what parts of the audio file their listeners heard, and is able to track this at scale across platforms. (RAD is offering both Android and iOS SDKs.)

While there’s value in podcast data that goes beyond the download, not all are sold on technology.

Most notably, the developer behind the popular iOS podcast player app Overcast, Marco Arment, today publicly stated his app will not support any listener-tracking specs.

“I understand why huge podcast companies want more listener data, but there are zero advantages for listeners or app-makers,” Arment wrote in a tweet. “Podcasters get enough data from your IP address when you download episodes,” he said.

The developer also pointed out this sort of data collection required more work on the podcasters’ part and could become a GDPR liability, as well. (NPR tells us GDPR compliance is up to the mobile apps and analytics servers, as noted in the specs here.)

In addition to NPR’s use of RAD today, Podtrac has also now launched a beta program to show RAD data, which is open to interested publishers.

News Source = techcrunch.com

Snap launches a certification program for AR shops to craft branded lenses

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Snap has announced a partner program intended to make it easer for brands to get on board with — and pay for — its augmented reality ‘lenses’ by helping advertisers find certified AR shops to craft the digital product placements on their behalf.

The move follows the visual messaging platform opening up lenses, almost a year ago, to outside developers — with the launch of a Lens Studio AR developer tool.

Snap’s lenses use a combination of AR and hyper personalization as their selling strategy — by superimposing branded content directly onto users’ faces and/or around their person. This means the advert becomes all but inescapable (at least to the user’s friends) as branded stuff gets mapped onto and/or injected into their personal content where it can piggyback on social sharing to shoot for viral spread.

At launch, Snap says the global Lens Creative Partner Program has more than 30 certified ‘creators’ listed — with the largest number located in the US, followed by the UK, then Canada and Australia. (A similar number of partner shops are also badged as global.)

Snap says additional regions are being launched in a few weeks, and it says it’s expecting to onboard 100+ creators over the next few months.

Snap Lens Creative Partners program AR shop, Social Snack, with content created for Hasbro

“Today we are announcing the launch of a Lens Creative Partners program specific to building AR Lenses for brands. This group of certified creators spans large agencies and expert individuals who have been building engaging and immersive AR Lenses for Snap,” it writes in a blog post announcing the program.

“To be certified, creators had to be experienced in developing quality AR and complete a rigorous course about the development process, creative best practices, ad policies and buy models of sponsored AR Lenses on Snapchat.”

It’s not as instantly arresting as cat lenses but Snap’s push to expand advertiser interest in paying for the chance to virtually adorn users with branded content — by making it easier to find a tried and tested AR shop to do the work — will probably result in Mr Tibbles wearing a lot more virtual merch on his head in future.

So expect plenty more feline indignity in future.

Snap says that more than one in three of its 186 million daily active users play with AR lenses on the app each day, averaging three minutes each — adding up to a collective 500 years of daily AR play time.

Just think how much quality cat petting time people are missing out on.

News Source = techcrunch.com

New YouTube ads will push viewers to download apps, book trips, find movie showtimes

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YouTube is expanding the ways advertisers can connect with their audience, thanks to an expansion to its TrueView in-stream ad format that will now push viewers to take actions when viewing ads beyond just a click. The company was already testing extensions that let advertisers add location elements or forms to their ads – to get viewers to sign up for a service or learn more via email. Chili’s tested this out to grow its loyalty program sign-ups, for example. Now, YouTube will add more extensions that let advertisers push other actions, like app downloads, travel booking, or buying movie tickets.

Early testers of these extensions included Vodafone, 20th Century Fox, Headspace, and Maybelline. Vodafone reported a 3.5% clickthrough rate, as a result, and a 2.3x incremental lift in ad recall, says YouTube.

With the new extensions, ads could become more useful to viewers who show interest. Instead of simply getting viewers excited about a new movie, for instance, viewers could be presented with an interface where they can browse nearby theaters and see when the movie is playing and where, then buy their ticket.

But this sort of ad is far more interruptive, too.

In that same movie showtime example, the ad takes over the full screen when the device is held vertically, YouTube notes. That does make it easy to click the showtimes and book a ticket, but some consumers may find this sort of takeover annoying.

Arguably, the ability to drive more than just an increase brand awareness is why advertisers would turn to a digital platform like YouTube in the first place. It makes sense that YouTube would expand the set of actions consumers can take on its ads to offer more than just a click that takes you to a company website. Whether YouTube viewers will actually stop in the middle of their video to buy tickets or download apps remains to be seen, of course.

The news was announced at Advertising Week on Monday, where YouTube also said that CPG advertisers will be able to measure their media using third-party market research firm IRI, in addition to Oracle Data Cloud and Nielsen Catalina Solutions (NCS).

 

 

News Source = techcrunch.com

Apple’s Search Ads expand to six more markets in Europe and Asia

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In December, Apple introduced a new pay-per-install ad product called Search Ads Basic aimed at smaller developers, to complement the existing Search Ads product, which then became known as Search Ads Advanced. Today, the company is expanding Search Ads to more countries, including France, Germany, Italy, Japan, South Korea, and Spain, bringing the total number of countries where Search Ads is available to thirteen.

In addition to the U.S., Search Ads Advanced had already expanded to Australia, Canada, Mexico, New Zealand, Switzerland, and the U.K.

Developers in the newly supported countries will be able to create campaigns using Search Ads Advanced starting on July 25, 2018 at 4 PM PDT, with those campaigns appearing on the App Store starting August 1, 2018 at 4 PM PDT.

Meanwhile, Search Ads Basic will be available across all thirteen supported countries starting on August 22, 2018 at 10 AM PDT.

To encourage sign-ups, Apple is offering first-time advertisers a $100 USD credit to try out the product.

While the first version of Search Ads launched back in October 2016 in the U.S., the idea behind the newer “Basic” product was to offer developers a different – and simpler – means of reaching potential customers.

Search Ads was originally designed to allow developers to target users’ keyword searches, combined with other factors like location, gender or whether or not they had installed the app in the past. Developers would pay when users tapped on those targeted ads.

With the launch of Search Ads Basic, it’s easier to set up campaigns.

Developers only have to enter the app to be advertised, the campaign’s budget, and how much they want to pay per install. Apple helps by suggesting the max developers should pay using historical data. Then, developers only pay for actual installs, not taps.

Although the App Store was redesigned with the launch of iOS 11 to offer improved discoverability, search is still a key way people find out about apps.

Apple says that over 70 percent of App Store visitors use search to discover apps, in fact, and 65 percent of all downloads come directly from an App Store search.

The ads work well, too, as they have an over 50 percent conversion rate, on average, says Apple.

Apple’s advantage over the pay-per-install ads found elsewhere on the web isn’t only the ads’ placement – at the top of App Store searches, where they’re identified with a blue background and “Ad” icon – it also manages this without violating user privacy. That is, it doesn’t build specific profiles on individuals for ad targeting purposes, and it doesn’t share user data with developers. By its nature, this makes the system GDPR compliant.

In addition, Apple only places an ad when it’s relevant to a user’s search – developers can’t pay more to have their ad shown more often across less relevant searches, which offers a more level playing field.

Apple didn’t say when Search Ads would reach other countries, but with the new expansions it has some of the top markets now covered.

 

News Source = techcrunch.com

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