Why Spotify is now a triple threat after $20m Omnicom deal
Last week Spotify announced a strategic podcast partnership with advertising giant Omnicom Media Group, which sees the latter committing a $20 million spend for the remainder of 2020.
The deal is the largest strategic podcast advertising partnership of its kind to date, according to the companies.
That figure seems like a lot but is a drop in the ocean to compared to Omnicom’s $35 billion annual media spend.
What it does reveal is the final piece in a podcast puzzle that is gathering steam.
In my view here are the three things you need to be competitive on the worlds podcasting stage;
1. A great platform – although Apple is the go-to for podcasting right, Spotify has a very targeted platform that allows both the advertiser and podcaster to get a deeper insight into their audience which advertisers want and need.
2. Engaging content – Spotify now have that after inking million-dollar deals with Joe Rogan, Kim Kardashian, Gimlet Media and a bunch of other very good content creators.
3. An advertising funnel – Spotify now has at least $20 million in revenue flowing in throughout the back half of 2020, and that’s a good start.
So Spotify now is a triple threat in the world of Podcasting.
What it means for Australian podcast advertisers and audiences is yet to be seen, but it certainly makes the landscape a lot more competitive.
This year has also seen Spotify acquire Bill Simmons’ The Ringer podcast network for $196 million, and ink a multi-year deal with Warner Bros for an exclusive series.