Spotify Tests Letting Listeners Skip Any Ads They Want, Whenever They Want
By Sara Shaw • August 10, 2018
Spotify is hoping to deliver another blow at rival Pandora, all in an effort to dominate the fast growing, $1.6 billion market that is digital audio advertising. The company says it’s running a test in Australia that will allow listeners to skip audio and video ads any time they want, as often as they want, allowing them to quickly get back to music. Unlimited ad skipping means Spotify users will be able to hear or watch just the ads they actually like, informing Spotify about their preferences in the process. With the new feature, dubbed “Active Media,” advertisers won’t have to pay for any ads that are skipped. Spotify is essentially betting its ad revenue on its ability to serve enough ads that consumers are willing to hear or see.
The test began last month in Australia only, but the ambition is to roll out Active Media globally. Spotify reported in July that it finished the second quarter with 180 million monthly active users, up 30 percent year-over-year with ad revenue totaling about $158 million, up 20 percent.