Spotify ad revenue 2017-2027

Spotify generated an estimated 1.5 billion U.S. dollars in advertising revenue in 2022. Based on the latest calculations, this figure will reach 2.2 billion U.S. dollars by 2027.

Why advertise on Spotify?

One of the main reasons for Spotify's appeal as an advertising destination is its reach. Company reports indicated that the number of Spotify's monthly active users (MAUs) hit a record high of 433 million in 2022, nearly twice the audience size recorded in 2019. By comparison, Apple Music has yet to reach the 100-million-subscriber mark, highlighting Spotify's pole position among the world's most popular paid music streaming services. Another factor distinguishing the Swedish streaming giant from international competitors is its two-tier subscription model. In addition to its Premium model, Spotify offers a free, ad-supported option that serves audio and video ads between songs.

Spotlight on podcast advertising

Podcasts have become essential contributors to the success of digital audio streaming platforms like Spotify. Data showed that Spotify amassed over 32 million monthly podcast listeners in the United States in 2022 and outperformed Apple Podcasts by some four million listeners. Not only that, but Spotify's podcast advertising revenue has also skyrocketed in recent years, jumping from just over 25 million in 2020 to almost 192 million in 2022. Industry sources expect this figure to surpass 400 million by the year 2024, highlighting the ever-increasing contribution of podcast content to Spotify's financial future.