Spotify has entered into an agreement to acquire Megaphone, a podcast advertising and publishing platform.
The deal will help the streaming giant expand its growing podcasting business with further support for advertisers and podcast publishers.
The acquisition was reportedly made for $235 million (£177.5m). It follows several other big buys in podcasting by Spotify, including Gimlet Media.
Spotify will soon open up Streaming Ad Insertion to all podcast publishers on Megaphone, the first time this technology will be made available to third-parties. It means podcast publishers will be able to offer more valuable podcast audiences to advertisers based on confirmed ad impressions.
Advertisers will be able to activate across Spotify’s Original & Exclusive podcasts, while scaling reach through the Megaphone Targeted Marketplace.
“We are still in the early chapters of the streaming audio industry story, but it is absolutely clear that the potential is significant,” said Dawn Ostroff, chief content & advertising business officer, Spotify. “We look forward to Megaphone joining Spotify on our mission to accelerate smarter podcast monetization for advertisers and podcast publishers powered by a scaled audience and state-of-the-art technology.”
“We are incredibly excited to join Spotify to help advance the podcast medium for publishers and advertisers alike,” said Brendan Monaghan, CEO, Megaphone. “We believe that Megaphone and Spotify’s shared value in innovation will drive the podcast ecosystem forward around the world.”