Spotify has announced that it will discontinue the ability for Megaphone publishers to set price floors for the Spotify Audience Network, effective from July 1, 2024. The decision is based on the belief that removing price floor functionality can result in greater revenue opportunities for Megaphone clients. Demand for the Spotify Audience Network has grown by 60% since its launch in 2021, and it serves some of the world's largest advertisers.
Despite the change, Megaphone publishers will retain the flexibility and control to optimize their monetization across multiple channels of demand. Spotify is introducing a new "direct-only" ad source choice within the ad locator, allowing publishers to fill ad locations exclusively with their direct sold campaigns. This feature provides publishers with the ability to prioritize their direct sales efforts without having to fully opt out of the Spotify Audience Network.
Key dates to note are:
- From May 15, 2024, organizations will have access to the new direct-only ad source selection update.
- Price floor functionality will remain available on Megaphone until July 1, 2024.
- From July 1, 2024, organizations will no longer be able to set new price floors, and any previously set price floor values will no longer be effective.
For any queries regarding the price floor change or the new ad source selection update, Megaphone publishers are advised to contact the Megaphone support team.
Image Credit: Megaphone
