In a move that could lure new subscribers away from Apple Music, Spotify Testing of "Active Media" is currently limited to Australia, Spotify explained to Ad Age .
Although the concept is initially heard unintentionally and potentially killing a source of income, Spotify's partner partner solutions, Danielle Lee, suggest that the company is looking to fine-tune ads that people are exposed to.
"Our hypothesis is that we can use this to tense our streaming intelligence and deliver a more personal experience and a more engaging audience to our advertisers. It will improve the performance we can deliver for brands," she said. "Just as we create these personal experiences like Discover Weekly, and the magic that brings to our consumers, we'll inject this concept into the advertising experience."
The concept has the support of at least one major advertiser, Dollar Shave Club. "As an advertiser, I love it. As a user, I love it too," said the company's VP for Media and Acquisition, Sam Kang.
Apple Music recently acquired Spotify in the US with respect to paid subscribers, but in July Spotify noted that it had 1
Excessive ads may potentially hold the ball in Spotify's court, especially since the company's advertising revenue increased by 20 percent in the second quarter.