Spotify (SPOT) purchase intent surging Spotify Purchase Intent was the […]
Audio Peers Should be Scared of Spotify (SPOT)
Audio Peers Should be Scared of Spotify (SPOT)
Last quarter Spotify shocked the market with a strong report and shares popped +10% post-release. Revenue increased +27% YoY, active listeners increased +20%, paid subscribers reached 170 million, and ad sales increased +75% YoY. Did you catch that? While other platforms grapple with changes in ad targeting capabilities (*ahem, thanks, Apple), Spotify significantly leveraged its ad-supported userbase. And one area of advertising is leading the pack, according to LikeFolio data: Podcasting.
Consumer mentions of engaging with ads on podcasts are near all-time highs, +29% higher YoY. But are these engagements impactful? Yes.
According to Statista, 53% of consumers searched online for more info about a product or service they heard about on a podcast. Any guesses who is winning the largest piece of the podcast listening pie? (This should be obvious after this build-up...)
Not only does Spotify hold the largest market share of podcast mention volume, but this number is growing...quickly. Many users likely saw podcasts featured on their customized Spotify Wrapped stories, released by Spotify earlier this week. The wrapped campaign features a custom review of user listening habits. But more importantly, is a nice gut check to understand how engaged Spotify users are.
2021 recorded the highest Spotify Wrapped engagement to date. In fact, volume was so high it sounded the alarm bells for our lead developer....we were processing a LOT of tweets... Looking ahead, Spotify has big goals. While the company posted wider than expected losses on its last report, execs clarified it wasn't a cash flow problem, but more a symptom of reinvestment in itself and future expansion. We like Spotify as a long play, and it still appears to be early in the game.