Media buyers say programmatic spend on Spotify is increasing as platform builds its own SSP

Spotify's ad revenue is still dwarfed by its subscriber income, accounting for 11.8% of the quarter's total revenue, but advertising revenues are rising.

Lindsey Freed, svp of media investment at Basis Technologies, noted that programmatic spend on Spotify increased by 8% year-over-year, with clients boosting spend by 75%.

Christian Luiga, Spotify's chief financial officer, mentioned that their ad business has been heavily reliant on direct sales and top of funnel brand spend.

As Spotify approaches its first profitable year, its revenue reached $4.2 billion in Q3, showcasing significant growth and changes in advertising strategies.

Read at Digiday