Spotify, the famous streaming company, is beefing up its podcasting offering by acquiring two companies; Chartable and Podsights.
Despite the controversy surrounding one of its most popular podcasters, Joe Rogan, Spotify is making moves to strengthen its podcasting business with the purchase of two podcast-focused companies. There are no details on the actual worth of the two deals, but they mark significant steps in the company’s effort to claim the top spot in the business.
Writing on the reason behind the acquisitions, Spotify said in its blog post, “According to eMarketer, annual U.S. digital audio advertising revenue is poised to grow to nearly $8 billion—and of that, $2.7 billion for podcast advertising alone—by 2025. We believe the next step to unlocking this growth is demonstrating audio advertising’s impact through innovations in measurement and attribution for advertisers and audience insights for publishers.
“That’s why today we’re excited to announce our acquisitions of two podcast technology companies, Podsights and Chartable.”
Podsights and Chartable are in the podcast marketing and ad attribution segment. They let podcasters and networks track who has listened to a show, whether they heard an advert, and if they took the call to action after listening to the ad. All this tracking is achieved by adding tags to the content. As such, the new features from Podsights and Chartable may be more helpful to podcasters than advertisers.
Meanwhile, Spotify will deploy the tech from these companies beyond its podcasting business because it will apply it across its platform. “In short, with the acquisition of Podsights, Spotify will be able to help advertisers understand how podcast ads drive actions that matter to their businesses. Over time, we plan to extend these measurement capabilities beyond podcasts to the full scope of the Spotify platform, including audio ads within music, video ads, and display ads.”
With Podsights and Chartable in its control, Spotify can transform its existing ad platform into the best in the audio business. It will probably power buying out ads through its marketplace and will be able to gather metrics about the ad performance. Show creators will be able to monitor how their investments in marketing are performing.
Spotify has been acquiring other companies for its podcast business for some time, in areas like ad tech and audiobooks. In 2021 alone, it snapped up Whooshkaa, Podz, Locker Room, and Findaway. Before that, Spotify bought podcast ad platform Megaphone. The company has also spent money on major talents, including world-famous Joe Rogan, Gimlet, Parcast, and The Ringer.
The company explains the benefit of adding Podsights and Chartable to the companies it has acquired before. “Over the past year, we’ve been strengthening Megaphone’s already robust offering—most recently with the acquisition of Whooshkaa and its broadcast-to-podcast technology—to ensure it’s the best place for podcast publishers to create, monetize, and measure their podcast businesses. And now, with the acquisition of Chartable, we will be further enhancing Megaphone’s suite of tools with the integration of Chartable’s audience insights and cutting-edge promotional tools, SmartLinks and SmartPromos. These tools will make it easier for publishers to turn audience insights into action and expand their listenership while ultimately growing their businesses.”