Dive Brief:
- SoundCloud, the music streaming service, has teamed with PubMatic to offer its premium advertising inventory across the supply-side platform’s various tools and solutions, according to a press release.
- Using PubMatic’s platform, advertisers will have access to global programmatic video and display inventory across SoundCloud’s desktop and mobile app. PubMatic will also provide “expertise, unique monetization opportunities and access to differentiated demand,” per the release.
- The partnership does not include programmatic audio advertising, which SoundCloud executives have called “fairly nascent,” particularly in markets outside the United States. The tie-up could help the music platform attract new advertisers as digital audio consumption continues to show potential.
Dive Insight:
Digital audio consumption remains a huge business, with high audience stickiness and interest. The average adult user spends about one hour and 43 minutes listening to digital audio daily, according to eMarketer’s June 2024 forecast, and projected ad spending for the sector will reach $11.13 billion this year. By 2028, the digital audio advertising market is expected to reach 1.6 billion users.
Within that market, SoundCloud’s inventory is a prize. With more than 400 million tracks from more than 40 million artists across 193 countries, SoundCloud is the largest audio discovery platform in the world, per release details. It is noted for its direct connection between artists and their fans.
“This partnership with SoundCloud, a platform that echoes our dedication to empowering creators, opens a world of possibilities for both artists and advertisers,” said Kyle Dozeman, chief revenue officer, Americas, PubMatic, in a statement. “By making SoundCloud’s top-tier programmatic inventory available, we’re connecting advertisers to a dynamic community of music enthusiasts, setting the stage for groundbreaking campaigns.”
Though SoundCloud’s primary offering is digital streaming, it has offered video and display advertising across its platform for several years. The platform has provided pre-roll video before playback of its audio content since 2016, per AdExchanger. Likewise, streaming services Spotify and Pandora offer similar inventory.
Offering different formats helps the audio streaming services get a foothold in the programmatic world. According to eMarketer, only 26% of digital audio in the U.S. is sold programmatically. In an interview with AdExchanger, Jonathan Kopitko, SoundCloud’s senior director of global advertising partnerships, characterized audio formats as “behind the marketplace” for programmatic, adding that deals with supply-side platforms like PubMatic “make sure we’re set up for success in the future.”
