Spotify Announces Strategic Acquisition of Podcast Technology Leader, Megaphone
New York, United States:
Spotify Technology S.A. (NYSE:SPOT), the world’s most popular audio streaming subscription service, today announced that the company has entered into a definitive agreement to acquire Megaphone, one of the world’s most innovative podcast advertising and publishing platforms. Together, Spotify and Megaphone will help advertisers and podcast publishers realize the full potential of podcasts. The two companies will achieve this through the power of the Megaphone Targeted Marketplace and by making Streaming Ad Insertion available to third-party podcast publishers for the first time.
With this acquisition, Spotify continues to deliver against its goal to become the world’s leading audio platform and focus on growing audio monetization across the industry. The acquisition follows Spotify’s launch of Streaming Ad Insertion, an innovative podcast ad technology that delivers the intimacy and quality of traditional podcast ads with the precision and transparency of modern day digital marketing.
Advertisers will now be able to activate across Spotify’s Original & Exclusive podcasts while scaling reach through the Megaphone Targeted Marketplace. For podcast publishers, the acquisition will unlock innovative tools that will help them earn more from their work. This includes the opportunity to opt-in to have their content monetized, matching their listeners with even greater demand from advertisers. Following transaction close, Spotify will soon make Streaming Ad Insertion available to all podcast publishers on Megaphone, the first time this technology will be made available to third-parties. With Streaming Ad Insertion, podcast publishers will be able to offer more valuable podcast audiences to advertisers based on confirmed ad impressions.
“We are still in the early chapters of the streaming audio industry story, but it is absolutely clear that the potential is significant,” said Dawn Ostroff, Chief Content & Advertising Business Officer, Spotify. “We look forward to Megaphone joining Spotify on our mission to accelerate smarter podcast monetization for advertisers and podcast publishers powered by a scaled audience and state-of-the-art technology.”
“We are incredibly excited to join Spotify to help advance the podcast medium for publishers and advertisers alike,” said Brendan Monaghan, CEO, Megaphone. “We believe that Megaphone and Spotify’s shared value in innovation will drive the podcast ecosystem forward around the world.”
The closing of the transaction is subject to customary regulatory approvals.
Disclaimer: This content is distributed by Business Wire India.
