Photo: ASSOCIATED PRESS
‘The decision will have a significant financial impact on podcasters while driving profits for the company.’
Spotify is reportedly facing challenges in its relationship with white noise podcast creators and is now taking stricter measures against them. According to a report by Bloomberg, white noise podcasters will no longer be eligible for Spotify’s Ambassador Ads program starting from October 1.
The Ambassador Ads program pays podcasters to promote Spotify’s own products, with the aim of encouraging more creators to produce content for the platform.
Bloomberg previously revealed that some white noise podcasters were earning up to $18,000 per month, largely due to Spotify paying them for advertising placements. It has now come to light that the company considered removing such podcasts from its platform altogether because they were negatively impacting its gross annual profit by $38 million.
The report suggests that Ambassador ads have not been effective on white noise podcasts, as the listeners tend to be less engaged compared to those of conversational or narrative podcasts. The audience for white noise podcasts typically uses them as background noise, resulting in limited benefits for Spotify from these advertisements.
While the creators of white noise podcasts can still generate revenue through direct listener support, paid memberships, and automated ads, this move eliminates a significant source of income. On the other hand, it may benefit listeners who prefer uninterrupted chirping birds or thunderstorms without promotional interruptions from Spotify’s podcasting tools.
In addition, Spotify has raised the eligibility threshold for Ambassador Ads. Podcasts now require 1,000 unique listeners over 60 days (up from 100) to participate in the program.
The company also plans to expand its automated ads program and split the ad revenue evenly with podcast operators, moving away from its previous approach of paying a flat rate based on impressions.