Spotify is expanding its advertising efforts into the connected TV (CTV) space. Spotify’s initial partner for this endeavor is Roku. The partnership involves launching video ads on Roku’s platform and is set to commence alpha testing in the near future, with plans to expand to more markets in the coming months, according to Ad Age.
CTV advertising makes sense for Spotify because music streaming on CTVs effectively turns these television screens into speakers, allowing users to play music throughout their households. Spotify recognizes this popular use case and aims to tap into it through advertising. Spotify’s decision to enter the CTV advertising space is influenced by the strong growth in CTV advertising. CTV is one of the fastest-growing sectors in advertising, with a projected 21% growth in ad spending in the United States for the current year, and a substantial increase expected by 2027.
While Spotify and Roku will collaborate to sell advertising inventory on CTV, the article does not specify the exact revenue-sharing arrangement between the two companies. This move aligns with Spotify’s broader advertising strategy, which aims to create an advertising stack that allows advertisers to target users across various platforms. The company seeks to make the Spotify experience available on all devices and platforms used by consumers.
