It has been reported that Spotify’s relationship with the producers of white noise podcasts has been problematic for some time, and it appears that the firm is now taking more action against these producers. According to Bloomberg, beginning in October, podcasters who produce white noise will no longer be qualified to participate in the Ambassador Ads programme on Spotify.
Podcasters are compensated by Spotify through this programme to read advertisements for the company’s various goods. Its purpose is to encourage a larger number of individuals to produce shows for the platform.
A previous article published by Bloomberg stated that some white noise podcasters were generating as much as $18,000 per month, with the majority of this income coming from payments made by Spotify itself for ad placements. It only came to light lately that the corporation was considering completely removing those categories of podcasts off its platform because they were cutting into the company’s gross annual profit by $38 million.
According to the survey, advertisements for Ambassador haven’t been very successful on white poise podcasts. This is because the listeners of these podcasts aren’t typically as engaged as they might be when listening to a narrative or conversational podcast. According to the report, they are described as more passive listeners who play these shows for the purpose of providing background noise. As a result, Spotify did not receive much value from those advertisements.
White noise podcast producers will still have the opportunity to generate revenue via listener contributions, paid subscriptions, and advertisements that are delivered automatically. However, by doing this, a significant source of money will be lost. On the other hand, it could be advantageous for listeners who just want to hear the sounds of nature, such as birds singing or thunderstorms, without having someone interrupt them to promote a product or service, such as the podcasting capabilities offered by Spotify.
In addition, Spotify has increased the criteria that must be met to be eligible for Ambassador Ads. To participate in the programme, podcasts now need to have 1,000 unique listeners over the course of 60 days, which is an increase from the previous requirement of 100.
Additionally, the company intends to extend invitations to participate in its automated advertising programme to a greater number of podcasters. In contrast to its prior practise of paying a flat rate based on impressions, Spotify has announced that it will henceforth share the revenue generated by these advertisements 50/50 with the operators of podcasts.