Audio streaming platform Spotify is now turning to its growing video content to attract more advertisers.

Spotify is making strategic moves to position itself as a comprehensive entertainment platform, going well beyond its roots as a music-only service to sustain and grow its revenue by reeling in more brands to advertise on its app. On top of the short-form video “Clips” on artist profiles launched last year, Spotify is also developing its video podcasts, with over 500,000 episodes uploaded to the platform.

This hybrid format, which combines the audio experience of podcasts with the visual element of video, has been a growing trend in the industry. In July 2023, Spotify announced that it is considering adding full-length music videos on the platform; and just this March, the company made the feature available in 11 countries, but not yet in the U.S. In November 2023, the audio platform also expanded its partnership with Roku, allowing video ads to be played while people stream music on the smart TV, effectively widening Spotify’s ad reach.

The streaming giant’s latest advertising efforts promote “The Spotify Effect,” with billboards across New York reading, “Your ads work harder on Spotify where everyone is feeling it.” “The Spotify Effect” is based on a study showing that its listeners are 15% happier and more relaxed after using its app, making them more receptive to advertising. By leveraging its happy listeners and growing video inventory, Spotify aims to optimize its value proposition for advertisers and users alike.

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