"Most advertisers prefer to orchestrate direct deals for podcasts spots, since host-read spots create a unique 'intimacy' between host and listener, which reduces the appeal and the inventory available to programmatic buyers."
"We're hopeful that, as Spotify continues to evolve its exchange and supply, this will become a more viable path for us moving forward."
"Michael Brown set up campaigns advertising attractive property rentals at below-market rates, prompting interested visitors to email the owner, who would ask for a credit score and send links to his own credit rating companies."
Spotify is introducing new ad formats like sponsored playlists and swipe-through carousels, along with automated bid adjustments. However, its ad business struggles due to advertisers favoring direct deals for podcast spots, which limits programmatic inventory. Additionally, ad spending on audio channels is lower compared to other media types, despite interest in diversifying ad budgets. The effectiveness of Spotify's ad exchange is anticipated to improve as it evolves. Meanwhile, a case of ad fraud involved fake rental listings that misled consumers into a costly membership program.
Read at AdExchanger
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