Spotify Goes On Hiring Spree In Europe, Australia, Canada
Spotify Technology SA (NYSE: SPOT) aims to hire hundreds of staff to boost its advertising sales in Europe and elsewhere to drive revenue from customers who do not pay a monthly fee but make up the bulk of its user base, Reuters reports.
"We are increasing our ads business marketing workforce by over 70% in Europe, Australia and Canada ... and that's off a pretty sizable base," Lee Brown, Spotify's head of advertising business, said.
Spotify has also hired an ad industry executive with 25 years of international experience to lead global sales, Brown said without divulging the name.
"An ad not only creates revenue for the firm, but it also lowers costs, as it leads to fewer songs being played and, in turn, modestly lower royalties to be paid," Morningstar analysts said. Out of Spotify's 365 million monthly active users, 210 million are ad-supported, raking ~12% of its total revenue.
Spotify carried 2.9 million podcasts as of Q2, up ~12% from the previous three months, which has helped boost ad revenue, as podcasts pull in more users and, being longer, allow more time for ads.
Spotify aims to add more tools for advertisers and make its podcast advertising and publishing platform Megaphone available in Germany, France, Spain, and Italy.
Spotify continues to splurge to drive its podcast business. Its competition with Apple Inc (NASDAQ: AAPL) has intensified after both launched paid subscription platforms for podcasters earlier this year. eMarketer sees Spotify overhaul Apple in podcast listeners for the first time this year.
Related Content: Podcast Wars: Can Apple Hold Off Spotify?
Price Action: SPOT shares traded higher by 2.12% at $254.10 on the last check Tuesday.
Image by PhotoMIX-Company from Pixabay
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