Spotify Trims Ad Spend On White Noise, Eyes $38M In Annual Savings

Music streaming giant Spotify Inc. (NYSE:SPOT) has decided to halt certain advertisements for white noise, according to a report by Bloomberg.

The company has announced that it will no longer include white-noise podcasters in its profitable Ambassador Ads program starting in October. Additionally, Spotify has raised the listener threshold for podcasters to qualify for the advertising program, requiring them to have 1,000 unique Spotify listeners over the past 60 days, up from the previous 100.

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White-noise podcasts typically feature loops of soothing sounds, such as bird noises or thunderstorms, and are favored as peaceful background music for activities like sleep, meditation, or study. For some creators, curating these has proven quite profitable, with one podcaster reporting monthly earnings of $18,375.

However, an anonymous source revealed to Bloomberg that Spotify didn’t consider the Ambassador Ads for white-noise podcasts to be a good return on investment as listeners often play these shows in the background. As per an internal memo, by directing listeners away from white noise towards more lucrative programming, Spotify estimates it could save around $38 million annually.

A spokesperson from Spotify communicated to Bloomberg that the plan had not yet been fully realized.

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