Spotify is planning to roll out video ads on its music streaming service later this year. The ads are designed to get marketers and brands interested in advertising on Spotify to sponsor free streaming for listeners. AdAge reports that the mobile version of Spotify will let listeners watch a video ad in exchange for 30 minutes of free streaming without ads. "Takeover" versions of the ads appear to run fullscreen on mobile, and in a window on the desktop app.
30 minutes of free streaming per ad
Spotify is planning to test the new video ads in the fourth quarter with a small number of brands, including Coca-Cola, Ford, McDonald’s, and Universal Pictures. Spotify users will be offered video ads that they can dismiss and continue listening to regular audio ad-supported music, or get 30 minutes uninterrupted streaming. Spotify’s desktop app will play the video ads only if the application is in view, otherwise it’s audio only.
It’s not clear how much Spotify is charging advertisers for the service, but there’s a huge market for video ads. eMarketer estimates that US advertisers will spend $1.44 billion on video ads running on tablets and smartphones this year, out of a total of $5.96 billion on digital video. Spotify has previously experimented with branded apps, partnerships with Coca-Cola, and even its own advertising for its music streaming service.