As Spotify makes profitability its number one priority, the streamer has taken a step back from the Interactive Advertising Bureau. The company recently ended its membership with the organization, which sets the industry guidelines for podcast listener and download data.
The move was highlighted when Spotify’s podcast-related services, including Megaphone, Chartable, and the platform formerly known as Anchor, were noted as non-compliant since their last certification in 2020.
As the leading global digital audio advertising company, Spotify’s decision to reassess its formal membership comes after reporting significant ad-supported revenue in Q4 of 2023, surpassing other major digital audio players like SiriusXM and iHeart, who remain IAB members.
Despite this change, a Spotify spokesperson emphasized the company’s ongoing support for the IAB’s mission, telling PodNews, “Spotify values our longstanding partnership with the IAB. For 2024, we’re taking a pause to make sure that we can participate in an active way and will reevaluate a formal membership later this year. In the meantime, Spotify remains committed to the IAB mission. We champion its efforts and remain deeply connected to the work supporting digital advertising without direct membership this year. While Megaphone, Chartable and S4P are not officially IAB certified at this time, all three platforms are compliant to the IAB v2.1 standard.”
Spotify finished 2023 by surpassing Q4 expectations despite a challenging year. The company reported a 16% increase in revenue, hitting €3.7 billion, although it also recorded a €75 million operating loss for the quarter. Despite the positive numbers and a stock boost from renewing Joe Rogan’s lucrative contract, CEO Daniel Ek suggested that further “efficiencies” might be on the horizon for 2024 after cutting thousands of jobs in 2023.
