Spotify To Buy Ad Tech Firm Megaphone To Monetize Podcasts
Spotify has agreed to buy ad tech company Megaphone, formerly known as Panoply Media, from media company Graham Holdings, in a $235 million deal.
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Updated November 2026. This was first published on 27 November 2020. The idea is the same. Any number below is what the original piece said then. It is not a new count.
Key takeaways
- Spotify has agreed to buy ad tech company Megaphone, formerly known as Panoply Media, from media company Graham Holdings, in a $235 million deal, although the companies didn’t clarify if the agreement was in stock, cash, or both.
- This deal is deemed to let podcast publishers opt in to monetize their shows and give advertisers more scale on whom they can reach on Spotify.
- Megaphone is a podcast advertising and publishing company that usually offers technology to podcasters and advertisers looking for targeted slots on podcasts through podcast hosting, distributions, and ad tools for publishers such as The Wall Street Journal and ESPN.
Spotify has agreed to buy ad tech company Megaphone, formerly known as Panoply Media, from media company Graham Holdings, in a $235 million deal, although the companies didn’t clarify if the agreement was in stock, cash, or both. This deal is deemed to let podcast publishers opt in to monetize their shows and give advertisers more scale on whom they can reach on Spotify.
Megaphone is a podcast advertising and publishing company that usually offers technology to podcasters and advertisers looking for targeted slots on podcasts through podcast hosting, distributions, and ad tools for publishers such as The Wall Street Journal and ESPN. Advertisers can also use the company’s technology to connect to the audience across each publisher’s podcast content. The ad insertion tools make ads targetable and measurable such that they will be relevant to the people getting them, and it will be easier to prove that they are interactive and practical.
Usually, Spotify has about 320 million users, including over 1.9 million podcast titles and 144 million subscribers. The paid subscriptions and dissemination of ads to the non-paying users are the primary sources of revenue for the company. In recent years, this audio streaming platform has been on a podcast acquisition contest, striking show deals from Michelle Obama, Joe Reagan, and Kim Kardashian. Spotify has also bought companies like Gimlet Media and Ringer, and now, they are taking one more step to monetizing the content with the help of this new deal.
Megaphone joining Spotify is a deal that has made the company to surpass the $800 million mark on podcast content and technology deals over the last two years as the podcast audience continues to expand.
Strategic Reasons For The deal #
This deal’s primary goal is to offer an option to publishers enabling them to monetize their podcasts through a streaming platform. With this acquisition, they intend to create targeted ads and make Spotify’s streaming Ad insertion available to third party podcasters for the very first time. The company will also make ad tech available very soon as they claimed.
While announcing the deal, Dawn Ostroff, the chief content and advertising business officer for Spotify, said that they are looking forward to Megaphone joining them to accomplish the mission of accelerating smart podcast monetization for podcast publishers and advertisers powered by current technology and scaled audience. He also added that they’re in the beginning chapters of the streaming audio industry story, but the significance of the potential is quite apparent.
Also, Brendan Monaghan, the CEO of Megaphone, said that they are delighted to join Spotify to help advance the podcast platform for both advertisers and publishers. He further added that Spotify and Megaphone’s shared value in innovation would globally propel the podcast ecosystem.
This deal follows the launch of the streaming ad insertion by Spotify, which is a typical podcast ad technology that shows metrics like reach and impressions to advertisers. According to Spotify, the technology will allow publishers to provide more details about their audience to advertisers based on the confirmed impressions increasing earnings from their work.
Spotify is believed to be an ideal home for Megaphone, and together they will be able to offer the best to podcast publishers and advertisers, as well as experiencing continued dual success.
Comparison of the Deal With Patreon and Acast Partnership #
Podcasting platforms are partnering and acquiring each other to have a better and advanced podcasting ecosystem. With the current amazing group of smart industry leaders, we are sure to see lots of developments and growth in revenues, audiences, advertisers, etc.
These partnership and acquisition deals between podcasting companies tend to encourage direct or indirect monetization.
For instance, big podcasting companies like Patreon and Acast have been in the spotlight for announcing their partnership. will consequently result in more podcasters joining the platform. The two companies are teaming up to distribute subscriber-only episodes. Only people who have paid will be able to access the feed. This makes it better for the podcasters to monetize their shows and earn from their work. There’s also a potential great ad deal, although it was not announced. Generally, this is direct monetization as the shows are the main thing that is being sold.
On the other hand, Spotify has stricken a deal with Megaphone also for monetization purposes of the content and incorporation of the ad technology.
These partnerships will increase the number of people listening to podcasts. in turn draws interest to a large number of advertisers to use the trend in the promotion of their products and services. Many traditional advertising platforms have become ineffective, so more brands are paying a lot for podcast advertising with targeted ads.
Spotify and Megaphone will mostly encourage indirect monetization as the content will be used as a tool to advertise (or sell other things). The podcasts are a vehicle to promote the brands? services and products among the listeners.
The Changing Landscape of Podcasts #
Podcasts have existed for quite a while, but it’s only in recent years that the industry began to flourish at a high rate. In 2020, the industry has experienced substantial technological changes and the growth of advertising activities. are great news for both content creators and listeners worldwide. For example, we have seen recently, Spotify leap to acquiring the two podcasting companies, Gimlet Media and Anchor, while still in the process of building its podcast empire.
The current podcasting trends changing the landscape of podcasts are an effect of a growing ecosystem of creators, advertisers, service providers, and listeners working harmoniously to attain a notable growth and development of the podcasting markets. Podcasts are developing into a widely influential and popular medium after a decade of uninterrupted and strong growth. Podcasters are trusted by audiences a lot. has prompted brands to slowly start investing considerable sums in podcast advertising. Many companies have realized that podcasts are a great way to market their stuff, and the industry is expected to experience massive growth in the coming years.
The long-awaited shift is coming from the recent moves. are significant to the podcasting landscape and advertising opportunities.
Questions and answers #
What is the main point? #
Spotify has agreed to buy ad tech company Megaphone, formerly known as Panoply Media, from media company Graham Holdings, in a $235 million deal, although the companies didn’t clarify if the agreement was in stock, cash, or both.
What else did the original piece say? #
This deal is deemed to let podcast publishers opt in to monetize their shows and give advertisers more scale on whom they can reach on Spotify.