Spotify is taking action against white noise podcasts by reducing advertising support, following an internal analysis that revealed the broadcasts were costing the company $38 million in annual profit. Starting from October 1st, white noise podcasters will no longer be able to earn money through Spotify’s “Ambassador Ads” program. This program paid podcast hosts to advertise Spotify during their shows. Spotify found that the marketing budget assigned to white noise podcasts was not being effectively utilized, as users typically keep these podcasts on in the background for relaxation purposes rather than actively engaging with the content. The Ambassador Ads program was originally intended to support traditional podcasts with more substantial verbal content. While white noise podcasts have gained popularity on Spotify, generating three million daily consumption hours, the company considered removing them from the platform and redirecting users to music from popular artists like Drake or Ed Sheeran. However, after evaluating the potential profit increase of $38 million, Spotify decided to retain the white noise podcasts. Despite the reduction in ad support, white noise podcasters can still operate on the platform and earn money through subscribers, listener support, and automated ads. Spotify informed content creators of changes to the Ambassador Ads system in an email, along with raising the entry requirements for ad support to 1,000 unique users over a 60-day period, compared to the previous requirement of 100 listeners. At the same time, Spotify plans to expand eligibility for its automated ads program and introduce a 50-50 revenue split for podcast hosts. A spokesperson from Spotify confirmed these changes as part of an effort to align with industry standards and provide consistency with other podcast monetization programs. The spokesperson also mentioned that Spotify continues to offer various free monetization solutions, including podcast subscriptions and listener support, for shows of all sizes.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
