Dive Brief:
- Video ads are coming soon to music streaming platform Spotify— and some big name brands are already on board.
- Coca-Cola, Ford, McDonald's, and Universal Pictures will be the first global video advertisers while Kraft Foods, Target, and Wells Fargo will be the first US-only advertisers.
- Spotify will begin testing the video spots in the fourth quarter and plans to open up the spots to all advertisers in 2015.
Dive Insight:
By now, Spotify listeners— and listeners of other streaming services like Pandora— are used to commercial interruptions. Although will the listeners even be looking at the video component of the ad if they are listening to Spotify while jogging or in the car? Even desktop users likely don't have their screens open to the app and will only listen to the audio. The big brand tests will help determine the worth of the video ads and will help answer some of those questions.