Culture

Spotify is testing in-app podcast ads that link you directly to the deals

No more memorizing promo codes. But the new feature is only for Spotify exclusives at launch.

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Spotify is looking to offer interactive ad experiences for in-episode podcast ads, the company announced today. The new feature, called “In-App Offers,” will allow podcasters to add embedded links on their episode notes to lead to an advertiser’s promo or website.

These embedded links would make it much easier for listeners to take advantage of specific promos attached to podcast ads. Traditionally these ads are linked to promo codes that — let’s be honest — you’re likely to forget about by the episode’s end. Promo links completely remove the need for codes at all: just click and take advantage of the offer.

Spotify’s podcast offerings rely on in-episode ads to support themselves; that means the number of uses by listeners can have a big impact on a podcast’s ability to continue recording. This feature and others like it will hopefully make it easier for podcasters to make money without listeners having to remember promo codes.

Launching now — Spotify is testing In-App offers beginning today in the U.S. with the podcast Last Podcast on the Left and sponsor Harry’s, a shaving care company. It’s also launching in Germany with sponsor Hello Fresh on the podcast Herrengdeck.

The promo link shows up in the episode notes under a new section labeled “Episode sponsors” and links directly to the episode’s specific promotion.

Spotify gets a cut — There is, of course, a caveat to this helpful new technology. At launch, the In-App Offers feature will only be available for Spotify-exclusive podcasts, as part of the company’s Streaming Ad Insertion program. Right now there are about 100 monetizable exclusive shows, Spotify says.

If advertisers are interested in using the new feature, they’ll have to divert funds and spend more on Spotify. The motivation behind Spotify’s latest feature isn’t just altruism; the company obviously hopes to bring in more advertising sales for itself, too.

More to come — Spotify wants to take this concept and run with it. The company is looking for ways to “create more of a direct funnel for brands,” Jay Richman, head of ads business and platform at Spotify, told The Verge.

“I think you could start to then piece together what a potential roadmap could look like, just based on the model with which we view this opportunity. So, it is one step in a larger innovation path to productize the coupon code,” Richman stated.

Spotify’s path to podcast glory has been paved with gold. The company’s purchase of The Ringer earlier this year solidified its place in the global podcast network, and the company has posited that much of its recent growth can be attributed to its ever-expanding podcast offerings. Spotify is only increasing its chances of success by making it easier for podcasters and advertisers alike to make more bank on the platform.