Spotify’s test of a new feature that allows users to skip ads more easily on podcasts initially sent shockwaves through the podcasting industry.
But industry members say the concern is overblown, for now.
The feature, which began rolling out as a test for some paid subscribers last week, surfaces a “skip ahead” button for users who have the app pulled up when they arrive at segments including ads, promotions, intros, outros and baked-in sponsorships. As Semafor first reported, this feature does not apply to ads that are sold specifically by Spotify. Premium, or paid users, on Spotify already listen to music ad-free on the platform.
The surprise rollout of this button, even as a test measure, prompted a flurry of calls between advertisers and podcasters over the past week as each side sought to understand how and where this would apply. But once the dust settled, leading voices say the measure does not appear to be much different from the skipping functions that are already available on YouTube, as well as on other audio platforms.
“Ad skipping is maybe scarier in theory than in practice, and so I don’t think this is going to have major material direct impact on the brands that advertise,” said Dan Granger, CEO of Oxford Advertising, which calls itself the world’s largest podcast advertising agency.
As it stands, the test feature does not impact ad delivery, as the ads are still technically delivered even if a user chooses to skip them. And thus far, Granger said he has not seen advertisers pull back in spending, with most adopting a “wait-and-see” approach to whether the feature becomes permanent, and to see how much it affects actual ad listening, which he expects to be minimal.
Greg Glenday, CEO of Acast, a podcasting hosting, distribution and monetization platform, which has a partnership with Spotify, says there has been some pushback from select podcast creators on the new measure.
“We do have some creators on the Acast platform who are not happy about this and we will support them completely as they evaluate any recourse. Acast is working privately with Spotify to understand if we could have collaborated more on the rollout or positioning, but that’s hindsight,” Glenday said.
He added that ad-skipping is not new to the audio medium and Acast’s own internal metrics point to only about 10 percent of users actually choosing to skip ads, with that function already being priced into the ecosystem.
“Podcast ads have some of the highest effectiveness and outcome scores in the media mix, so we don’t think this is a material issue at the moment. As long as we treat the audience with respect with regard to ad load and tone, they will accept ads and support their creators,” he said.
Even if the feature is adopted more widely, Granger says the highest value for advertisers comes from host-read ads. So if those are separated out of the “skip ahead’ feature, while other promotional messages are skipped, advertisers would still likely be happy.
Amid the pushback, Spotify itself seems to be weighing the results and considering whether to keep the function.
“We regularly conduct tests at Spotify — some tests become permanent features, while others help inform future product development. We’re exploring ways to make podcast listening and viewing more intuitive for Premium subscribers based on how people use the platform, with the goal of helping listeners spend more time enjoying podcasts. We’ll continue to evolve the experience as we learn,” a Spotify spokesperson said in a statement.
