This week, Spotify released our first quarter 2022 financial performance. As our CEO and co-founder Daniel Ek said, Spotify’s business showed strength and resilience in the first quarter: the platform now has 422 million MAUs worldwide (up 19% over a year), of which 252 million are ad-supported MAUs. As we move forward into 2022, Spotify Advertising’s mission remains the same: to modernize audio advertising globally to deliver greater impact for advertisers, while fueling growth for creators.
Here are the main highlights of the first quarter, presenting opportunities for advertisers on Spotify:
1. Paving the way for the future of podcast advertising.
This quarter, Spotify launched the interactive podcast ad format: Call to Action Cards in the US CTA cards are clickable interactive display units for podcast ads. They combine visuals and customizable text to deliver a clear and simple message, as well as a first for podcast ads: a clickable call to action. This means that now, in addition to driving superior campaign results like awareness and recall, advertisers can also drive conversions.
CTA cards are powered by our SAI (Streaming Ad Insertion) advertising technology, and they are designed to be seen while your ad is playing and after it has been heard. We are really excited about the first results. As we’ve increased the number of places listeners can find CTA cards in the Spotify app, we’ve seen results such as website visits increase accordingly, delivering increased ROI for our advertisers.
2. Improved podcast measurement for advertisers and insights for publishers with the acquisition of Opinions and Chartable.
With our recent acquisition of Opinions, Spotify will be able to help advertisers understand how podcast ads drive significant action for their business. For example, Saks Fifth Avenue used SPAN’s behavioral targeting to drive luxury shoppers to their website, driving a 3x higher conversion rate than industry benchmark Podsights. Learn more about the acquisition in our interview with Podsights founder and CEO Sean Creeley.
We have also improved megaphone suite of tools with the acquisition of Chartable. Integrating their audience insights with industry-leading promotional tools like SmartLinks and SmartPromos will make it easier for publishers to turn audience insights into action, growing their audience while growing their business.
3. Investing in new content and experiences fuels user growth and engagement.
MAU growth has been particularly strong within our Gen Z audience, which has been fueled by successful launches of product features like To mix together and Words. The launch of Lyrics is particularly exciting for advertisers, as advertisers who purchase Mobile Overlay will now see a portion of their ads served within the Lyrics environment.
On the content side, unburied batman, created in partnership with Warner Bros. and DC, will premiere simultaneously in nine global markets on May 3. We are thrilled to bring this iconic franchise and the legacy of Batman to our hundreds of millions of listeners around the world. All such new content and experiences are governed by Spotify Platform Rules and delivered in a brand safe environment.
4. Empower creators and connect fans through new partnerships and programs.
Spotify and FCBarcelona announced a first-of-its-kind partnership to bring music and football together, where Spotify will become the official audio streaming partner. Additionally, Spotify SoundUp program, which is available in 12 markets and continues to bring diverse voices to podcasting by providing attendees with educational opportunities, resources, and access to industry experts. We’ve also enriched our long-running Spotify Singles program with original tracks from six GRAMMY Best New Artist nominees. As listeners turn to these culture-generating shows, advertisers have a unique opportunity to reach them. Check out our guide on how to create an inclusive audio ad to meet listeners where they are.
5. Give businesses of all sizes the tools to succeed with audio.
Audio is our thing. Now we can make it yours too. In early 2022, Spotify launched the Spotify Advertising Academy to give advertisers a crash course in all things audio. Anyone can now take our free interactive training courses and become a certified expert in digital audio advertising. Learn more about how digital audio advertising (including podcast advertising) can revolutionize the way you reach and engage your audience, whether you’re new to audio or a seasoned pro.
Want to reach Spotify listeners around the world? Connect with a Spotify representative or get started right away with Spotify Ad Studio, our self-service ad manager.