Spotify is hoping to deliver another blow at rival Pandora, all in an effort to dominate the fast growing, $1.6 billion market that is digital audio advertising.
According to AdAge, the company isrunning a test in Australia that will allow listeners to skip audio and video ads any time they want, as often as they want, allowing them to quickly get back to music. Listeners who don't pay for a subscription currently can't skip ads at all.
Danielle Lee, global head of partner solutions at Spotify, says she compares the move to Spotify's "Discover Weekly" feature, which tailors a playlist to users' established listening habits. Unlimited ad skipping means Spotify users will be able to hear or watch just the ads they actually like, informing Spotify about their preferences in the process, she says.
"Our hypothesis is if we can use this to fuel our streaming intelligence, and deliver a more personalized experience and a more engaging audience to our advertisers, it will improve the outcomes that we can deliver for brands," Lee says. "Just as we create these personalized experiences like Discover Weekly, and the magic that brings to our consumers, we want to inject that concept into the advertising experience."
The effort is another volley aimed at the company's largest competitor. Last month, Spotify quietly pulled its ad inventory from the digital audio ad tech platform AdsWizz, which Pandora bought in May for $145 million.
The company wasn't coy about its motivation, either: Lee says it opted to end its partnership with AdsWizz "to maintain our competitive differentiation."
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