While Spotify (spot) doubles its advertising ambitions, the streaming giant entered 2025 with a renewed accent on the monetization of its vast base of users beyond subscriptions. The big question remains: Can Spotify ‘advertising activity ultimately have reached the right grades in 2025? What Main street data tells us about Spotify.
According to Main Street data, Spotify generated $ 556 million in advertising in advertising in the fourth quarter of 2024, reflecting an increase of 7.2% from one year to the next. Meanwhile, income from its premium segment increased by 17% to 3.7 billion dollars compared to the same period last year.
On the user’s front, users supported by advertising increased 12% in annual sliding to 425 million, while premium subscribers increased by 11% to 263 million.
Although advertising revenues have traditionally taken a rear seat in the premium SPOTIFY subscriptions, recent initiatives such as the expansion of podcast collaborations and the improvement of programmatic capacities indicate the growing concentration of the company on the potential of this segment. Earlier this month, Spotify has unveiled several updates to its advertising strategy, including the launch of Gen IA Advertisements.
A remarkable announcement was the introduction of the Spotify Ad Exchange (Sax), a new programmatic platform which allows advertisers to target connected users through real-time tenders. In addition, the company has announced new partnerships for Sax, including the display and 360 video from Google (Googl), Magite and The Trade Desk (TTD).
Meanwhile, Sax will support advertisements in audio, video and display formats through music, with a podcast inventory to follow. It will be launched on key markets, including the United States, Canada, Europe, Australia, India and Brazil.
While the long -term Spotify’s advertising signals, analysts are also looking at how these movements may have an impact on the trajectory of the company’s actions.
According to Tipranks, Wall Street has a moderate purchase consensus note on SidewalkBased on 18 purchases, 10 titles and zero sales recommendations. The average SPOTIFY share price of $ 668.13 implies an increase of increase of 21%.
The year up to date, cash actions won 23.6%.