Spotify 📈 Q3, Influencer Blackouts are Over, & More

Before we get into the news, a quick heads-up that Sounds Profitable’s own Tom Webster will be presenting new data and findings from the landmark Podcast Landscape 2024 study in a free webinar with Crooked Media VP of Sales Giancarlo Bizzaro. The two will discuss how the study’s findings show the real story behind “audio vs. video,” why podcasting remains fundamentally audio-first even with video’s crucial discovery role, and strategic implications for both podcast creators and platforms. Register now for the live webinar on Wednesday, November 20th, at 2:00 p.m. EST.

Spotify Reports Third Quarter 2024 Earnings

Yesterday Spotify published their latest quarterly earnings report, featuring growth noteworthy enough to generate coverage in Bloomberg and The Wall Street Journal. Noteworthy stats include paying subscribers reaching 252 million in Q3, beating analyst estimates of 250.1 million. Their gross margin also beat expectations, growing to 31.1%. Advertising revenue is only up 6%, attributed to lower prices in both music and podcast advertising.

Influencer spending increases in Q4 after election blackout as brands integrate channels, commerce by Antoinette Siu

Many brands either reduced or outright halted investments in influencer marketing to barricade themselves from political blowback during a heated election season. With the U.S. election over, marketers tell Digiday they expect to see budget spend on influencers increase during a holiday season compacted down by election and economical concerns. Meanwhile platforms like Meta and TikTok are pushing the premise of a “Q5”, suggesting brands take advantage of advertising lulls during the end of December/early January when shopping spikes again.

The number of ad tech mergers and acquisitions is developing from a trickle to a steady flow by Ronan Shields

This past quarter merger and acquisition (M&A) activity saw significant growth, with the overall volume of M&A increasing 13% quarter over quarter. A trend in the M&A of later is “rationalization” deals that aim to consolidate or expand the purchaser into new markets. Podcasting is no slouch in the M&A game, such as the recent Insignia Capital acquisitions of Lower Street Studios and Veritone One, which will eventually merge the two companies and bring podcast advertising to a previously podcast-less Insignia portfolio.

Subscriptions poised to make a comeback as publishers sort out revenue priorities for 2025 by Julia Tabisz

While direct-sold remains a top priority for publishers interviewed by Digiday, subscriptions are making notable gains in regards to where publishers are making the most money, and thus will get more focus in the approaching quarters. A Digiday survey found the top three revenue sources for publishers going into 2025, in order, are direct-sold ads, video advertising, and branded content. Video advertising came in fourth place in 2023, making its current spot in second place a notable jump in revenue.

As for the rest of the news…