|Spotify will now offer ad-free music streaming to its users in Australia. / Photo by: Max Pixel|
Spotify has rolled out a new feature in Australia that will allow users on free accounts to skip audio and video advertisements, which previously can only be done on its paid premium accounts, according to Eric Brackett, writing for Digital Trends.
The music streaming giant believes it can better curate ads by allowing users to skip those that do not interest them.
Danielle Lee, Spotify’s head for partner solutions, said the ad-skipping functionality is similar to its “Discover Weekly” feature that builds a tailored playlist based on user’s listening habits and preferences. Lee added that with this development, Spotify can deliver a more personalized experience to listeners and a more engaging audience to its advertisers. “There will be an improvement in the outcomes that Spotify delivers to brands,” Lee told the advertising industry website AdAge.
The Swedish company may be following a practice started by YouTube, where ads can be skipped after five seconds, something that is done by 59% of millennials, according to a Business Insider report. However, it actually benefits advertisers by enabling them to know who should be targeted by their ads. On the other hand, those who do not skip ads on YouTube pay more attention to them and are more interested in the products being advertised. Engagement for TV ads on YouTube was found to be 84% higher among persons from 18 to 49 years old.
It remains to be seen if Spotify will have the same success as YouTube as far as ad engagement is concerned. That will likely happen if the music-streaming service rolls out the ad-skipping feature beyond Australia.