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In an extremely brave and risky financial play, Spotify may soon allow free tier users to skip audio and video advertisements whenever they want.
At present, free users are not allowed to skip ads at all, but that could soon change according to a report by AdAge. The Scandinavian streaming service is currently testing the tweak to its free tier in Australia.
Users Down Under are allowed to skip ads whenever they like, getting back to their voracious music consumption sooner. Spotify is also making note of which ads users of skipping, building up a playlist of relevant ads, if you will.
The company’s comparing this tweak to its advertisement delivery system to Discover Weekly, an automated playlist feature that curates a list of tracks users are most likely to enjoy based on listening habits.
More personalised ads might be coming to Spotify, but you can also skip them as often as you like
“Our hypothesis is if we can use this to fuel our streaming intelligence, and deliver a more personalized experience and a more engaging audience to our advertisers, it will improve the outcomes that we can deliver for brands,” Danielle Lee, Spotify’s head of global solutions, tells AdAge.
This information is also invaluable to brands, who can tinker and target ads to individuals more acutely.
It’s not clear if this tweak to the company’s free tier will be implemented globally, but it’s a risky play.
Spotify notes that advertisers will not be required to pay for skipped ads. And in a world where consumption is paramount, will users be prepared to listen to ads, regardless of how enticing they are? In turn, it could entice more users to join the service, increasing the number of users ads can be served to.
Nevertheless, Spotify can’t afford to experiment too much.
The company lost nearly €400-million during Q2 2018, while less than half of its 180-million subscribers pay for the service on a monthly basis.
Feature image: supplied, Spotify