(CTN News) – It is said that Spotify has had a thorny relationship with the makers of white noise podcasts for some time now, and now it seems as though they are taking more action against them.
The Ambassador Ads program for Spotify’s Ambassador Ads will no longer be available to white noise podcasters as of October 1st.
As part of the program, Spotify pays podcasters to read ads for the company’s own products as part of the program. In order to make the platform more popular, it seeks to get more people to create shows for it.
It has been reported that some white noise podcasters are making as much as $18,000 per month, in large part due to the fact that Spotify itself pays them for ad placements.
In a recent report, it was revealed that the company had considered removing the type of podcasts from its platform altogether because they were causing a $38 million dent on its gross annual profit.
It has been found that ambassador ads haven’t been very effective on white poise podcasts, according to the report, mainly because their listeners aren’t usually as engaged with them as they might be with a conversational or narrative podcast.
As they’re more passive listeners who play these shows for background noise, Spotify was not seeing much benefit from those ads, as they’re playing them for background noise, so they didn’t benefit much from them either, according to the report.
The producers of white noise podcasts will still be able to earn money through direct support from their listeners, paid memberships, and automated advertising, which will still be available to them.
The problem with this move is that it cuts off one of the key sources of revenue for the company.
As a flip side, listeners who simply want to listen to the sounds of birds chirping or thunderstorms may find that it may be beneficial, since they won’t be interrupted by someone promoting the likes of Spotify’s podcasting tools when they want to hear their favorite music.
As well as that, Spotify has raised the eligibility threshold for Ambassador Ads as well. To be eligible to participate in the program, podcasters must now have 1,000 unique listeners over a period of 60 days (up from 100 listeners previously).
As part of its automated ads program, the company also plans to ask more podcasters to join the program. In a move away from its previous approach of paying a flat rate based on impressions, Spotify has said it will split revenue from these ads in half with podcast operators.