Spotify to Buy Advertisement Firm Megaphone for $235-Million
Sweden-based audio giant, Spotify has acquired podcast advertising and publishing platform Megaphone.
According to media reports, the deal is worth $235 million.
The company will use Megaphone's technology to create targeted advertisements.It will also make its proprietary advertisement monitoring tools available to third-party podcast publishers.
Spotify earns revenues via paid subscription and also advertising disseminated to non paying users. It reported that the advertising business returned to growth in the third quarter after the initial slump caused by the pandemic.
Spotify has been making heavy investments in the podcast space in an effort to become the Netflix of audio. The company has been spending millions and has acquired companies like Gimlet Media and Ringer.
The new technology is said to help podcast publishers earn more from their work.