Pod One Out
Last week, Spotify introduced a feature – one that listeners have been clamoring for – that effectively skips certain segments of a podcast. In other words, it can be used to bypass the ads.
In private conversations late last week, Spotify had, as Semafor puts it, “some more- and less-convincing answers” for large podcast networks and publishers about the change. And, to be fair, Spotify execs described the new skip button as part of an early test, so it could be walked back.
Still, Spotify also believes the feature will be popular and, in turn, boost overall podcast listenership – a bitter pill for podcasters who could end up with more listeners but less revenue.
Podcasters technically can keep their ads safe from the skip button, but there’s a catch. They need to let Spotify serve the ads, because Spotify disables automatic skip for ads running through its own ad tech stack.
But for most creators, surrendering control to Spotify’s programmatic network is a nonstarter. Direct-sold campaigns are a podcaster’s meat and potatoes – especially when hosts hand-pick sponsors and weave them into the show in creative, native ways. Forcing creators to offload their ad supply to Spotify just to protect their revenue isn’t a solution; it’s an ultimatum.
I’ll Take Payment Upfront
This year’s TV upfront negotiations have wrapped, and there’s a clear winner: streaming.
Advertisers shifted a whopping 30% more upfront money into streaming this year, bringing total commitments to nearly $33.8 billion, according to data from consulting firm Media Dynamics. Broadcast and cable commitments keep tanking, but thanks to streaming growth, the overall upfront market grew 9.1% this year.
But the numbers also suggest that media companies are losing leverage in negotiations. Streaming CPMs fell 4.9% this year, which is higher than the 4.2% decline rate for broadcast CPMs. Intensifying competition has gradually brought streaming ad prices back down to planet Earth over the past few years.
And so now live sports have become the go‑to way to prop up pricing.
Many media companies and streamers credited live sports for driving double-digit gains in ad commitments, including Disney, Fox, Amazon and Netflix, which is touting the 2027 Women’s FIFA World Cup as a major revenue driver for next year. Meanwhile, Warner Bros. Discovery suffered alarming linear losses last quarter, largely due to missing out on a banner sports season this year.
Looks like before long live sports will dictate the winners and losers of the streaming wars.
I Learned It From Watching You!
Everybody in the advertising world wants a piece of the small and midsize business market. And why wouldn’t they? Look at how much money walled gardens like Meta and Google have made off of providing ad space and tools to local businesses.
OpenAI’s advertising business is still nascent, but it seems eager to tap into the SMB money that’s fueled the big ad platforms for years. As Digiday reports, OpenAI recently posted six jobs in San Francisco and Dublin that all mention SMBs in the description.
Based on these job descriptions, it appears that OpenAI is mostly looking for people who have previously worked at LinkedIn, Meta and/or Google. Most of the roles focus on growing the business and managing vendors rather than building the actual ad tech that SMBs would use.
In other words, OpenAI looks like it’s lifting a page from the Google and Meta playbook – and trying to hire the people who ran it.
But Wait! There’s More!
Warner Bros. Discovery’s sci-fi thriller “The End of Oak Street” is facing significant criticism for incorporating AI-generated content into its marketing, including a partnership with DogPack’s “The Dogbone Podcast” that features AI dogs as hosts. [TheWrap] ‘
Similarly, the bipartisan backlash against AI data centers is getting harder for politicians to ignore. [Business Insider]
YouTube is making it more difficult for creators to earn money. [The Verge]
AI might be reshaping ad infrastructure, but it hasn’t boosted company results just yet. [Ad Age]
You’re Hired!
PubMatic appoints Megan Ramm as its global CRO. [release]
TripleLift hires Dave Simon as CRO. [release]
