In order to expand its business, popular music streaming platform Spotify has acquired two major podcast ad tech firms, Podsights and Chartable.
With the acquisition of Podsights, the Swedish company will reportedly be able to help advertisers understand how podcast ads drive actions that matter to their businesses. Podsights is a leading podcast advertising measurement service that helps advertisers better measure and scale their podcast advertising.
“We believe the opportunity for digital audio and podcast remains significant. With these acquisitions, we’re taking a big step in upleveling digital audio measurement and insights to help the entire industry scale to new heights,” the company said.
According to reports, Podsights’ team of around 40 full-time employees will join Spotify and the company says that it has no plans to adjust that team at this time.
On the other hand, Chartable is a podcast analytics platform that enables publishers to know and grow their podcast audiences through promotional attribution and audience insight tools.
Spotify has also revealed financial details related to these acquisitions. It will invest $100 million in the licensing, development and marketing of music and audio content from historically underrepresented creators, its CEO Daniel Ek said recently.
The company also reported its fourth quarter (Q4) results for 2021, taking its paid subscribers to 180 million globally. Monthly active users on the platform grew by 18 per cent (on-year) to reach 406 million.
It must be noted that advertising represented 15 per cent of Spotify’s revenue in the October-December quarter last year.
Interestingly, the development comes at a time when Spotify is facing backlash because of Joe Rogan’s podcast which critics say is spreading misinformation related to COVID-19. It has also led to several artists leaving the platform in protest.