Spotify has achieved double-digital growth in its ad business over the past six quarters, according to recent research from WARC.
The report was based on WARC's dataset of advertising and media intelligence from around the world.
The researchers forecast that Spotify’s global advertising revenue will reach $2.1 billion in 2024, up 13% year over year. Ad revenue is expected to continue to rise in the coming years as well, reaching $2.6 billion in 2026.
Spotify's global user base has steadily grown since 2016, and an increasingly larger share of users have been opting for the service's ad-supported subscription over its premium subscription.
Other key insights from the report:
- Combining audio and video ads on Spotify drives 66% more incremental sales compared with audio ads alone.
- Spotify podcast ads have a 13% higher conversion rate when the host reads the brand message.
About the research: The report was based on WARC's dataset of advertising and media intelligence from around the world.
