SoundCloud, a music streaming service, has partnered with PubMatic to provide premium advertising inventory across the platform’s tools and solutions, according to a press release.
Advertisers can use PubMatic’s platform to access global programmatic video and display inventory across SoundCloud’s desktop and mobile apps. PubMatic will also give “expertise, unique monetization opportunities, and access to differentiated demand,” according to the statement.
The cooperation excludes programmatic audio advertising, which SoundCloud executives have described as “fairly nascent,” especially in regions outside the United States. The partnership might help the music platform attract new advertisers as digital audio consumption continues to grow.
Dive Insight: Digital audio consumption remains a significant industry, with a strong audience loyalty and interest. According to eMarketer’s June 2024 prediction, the average adult user listens to digital audio for one hour and 43 minutes per day, and ad spending in the sector is expected to reach $11.13 billion this year. By 2028, the digital audio advertising market is estimated to grow to 1.6 billion people.
READ MORE: Programmatic Audio Is A Challenging Market. So SoundCloud Is Leading In Display And Video
SoundCloud’s inventory is highly valued in that market. SoundCloud is the world’s largest audio discovery site, with over 400 million tracks from 40 million artists across 193 countries, according to the statement. It is known for facilitating direct communication between artists and their fans.
“This partnership with SoundCloud, a platform that echoes our dedication to empowering creators, opens up a world of possibilities for both artists and advertisers,” said Kyle Dozeman, PubMatic’s chief sales officer for the Americas. “By making SoundCloud’s top-tier programmatic inventory available, we’re connecting advertisers to a dynamic community of music enthusiasts, setting the stage for groundbreaking campaigns.”
READ MORE: SoundCloud Collaborates With Sony To Launch The ‘First On SoundCloud’ Artist Accelerator Program
Though digital streaming is SoundCloud’s core service, the company has long offered video and display advertising on its site. According to AdExchanger, the platform has been providing pre-roll video before audio material playbacks since 2016. Similarly, the streaming services Spotify and Pandora have comparable inventory.
Offering many formats enables audio streaming businesses to gain a presence in the programmatic world. According to eMarketer, programmatic sales account for only 26% of all digital audio in the United States. In an interview with AdExchanger, Jonathan Kopitko, SoundCloud’s senior director of global advertising partnerships, described audio formats as “behind the marketplace” for programmatic, adding that partnerships with supply-side platforms such as PubMatic “make sure we’re set up for success in the future.”
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