Spotify ad revenue is rebounding in 2021, led by the direct and podcast sales channels

Spotify today reported an ad revenue rebound in Q2 2021. Spotify reached 275 million euros in ad revenue, in Q2 2021, 110% growth year over year, 28% growth quarter over quarter.

Spotify says ad-supported revenue outperformed their forecast, driven by strong underlying demand. According to Spotify, the strength in ad-supported revenue was led by the direct and podcast sales channels, with the latter benefiting from a triple-digit Y/Y gain at existing Spotify studios (The Ringer, Parcast, Spotify Studios, and Gimlet) along with contributions from the Megaphone acquisition, the exclusive licensing of the Joe Rogan Experience, and Higher Ground.

Ad Studio grew 165% year over year due to the success of the video product within Ad Studio and international market contributions.

Spotify Audience Network, launched in the US in April, increased the monetizable podcast inventory in the US by nearly 3 times.

For opted-in podcast publishers, Spotify saw a double digit increase in fill rates, and a double digit lift in CPMs.

On July 1, Spotify expanded the Spotify Audience Network to include Australia, Canada, and the United Kingdom.