An Update on Price Floors for the Spotify Audience Network

This email was sent to Megaphone publishers. We’re reproducing it for public interest.

Hi,

After careful consideration, Spotify has decided to no longer support the ability for Megaphone publishers to set price floors for the Spotify Audience Network. This change will go into effect starting July 1, 2024.

Spotify is intent on driving revenue growth for publishers and we believe removing price floor functionality can ultimately result in greater revenue opportunities for Megaphone clients. Demand for the Spotify Audience Network has grown by 60% since its launch in 2021 and it continues to serve some of the world’s largest advertisers; we believe that this decision will help Megaphone publishers tap into more of that premium demand and improve their overall monetization potential.

Megaphone publishers will still have the flexibility and control to optimize their monetization across multiple channels of demand. To help further improve this experience, we are pleased to announce that publishers will now have the option to fill ad locations exclusively with their direct sold campaigns through a new “direct-only” ad source choice within the ad locator. This will allow publishers to determine if and when they want to prioritize their direct sales efforts without having to fully opt out of the Spotify Audience Network, giving publishers the flexibility to update their monetization strategies in real-time and maximize revenue based on performance. This functionality is also a great tool to help manage and reserve inventory for premium sponsorships. You can learn more about this new direct-only ad source option here.

We recognize these new updates could have impacts to your overall monetization planning so we wanted to ensure you are given ample time to plan for these changes accordingly. Please take note of the following key dates:

• Starting today (May 15, 2024), your org will have access to the new direct-only ad source selection update
• Price floor functionality will remain available on Megaphone until July 1, 2024
• From July 1, 2024, your org will no longer have the ability to set new price floors and any previously set price floor values will no longer be effective.

If you have any questions regarding the price floor change or the new ad source selection update, please send a ticket to the Megaphone support team.