Free music ad-based ads are everywhere and they are proving to be lucrative.
According to a recent report from music tracker Mixcloud, more than half of the ad revenue generated from music-streaming services comes from the placement of free music ad ads, with a whopping $1.5 billion being spent on adverts on music services in 2016.
Mixcloud’s analysis is based on data from a report commissioned by Spotify, which reveals that Spotify spent $4.7 billion in ad revenue on music ad placements in 2016, including a $1 billion ad campaign on YouTube, $1bn on Apple Music and $400 million on Spotify.
But it also says that, of that total, a whopping 87% of the revenue comes from free music ads, meaning that Spotify can easily pocket more than $1billion in ad revenues by placing free music on their services.
However, the report suggests that Spotify is not alone in using free music advertising.
Google, Apple Music, and Amazon are also using free ad formats to boost their revenue, with Google even placing ads in Google Play Music and Amazon’s own music app, Audible.
“Advertisers use a variety of free ad platforms, including YouTube, Apple, Spotify, Google Play, and Audible, to reach their audiences,” Mixcloud’s report states.
“These ad formats include ad formats that include a free, ad-free audio stream, a free audio stream for video playback, and an ad format that is only for video.
Spotify, Apple and Google Play can use this ad format in the same way as Google, YouTube, Amazon, and Apple Music.
The revenue generated by free music is not limited to ad revenue, but also comes from streaming, download, and other related revenue sources, according to Mixcloud.
In the past year, Spotify has paid out a total of $1,843,400 to music ad partners, while AdWords, Google Adwords, and AdSense have also seen large payments from ad networks.
Advertiser fees also cover the costs of the media companies which are used to pay for music ad placement.
When Spotify began running its free music campaign in April 2018, it paid a total $8.3m to ad networks and publishers for the campaign.
Now, according a report from Adweek, the number of paid media companies and publishers has jumped by more than 60% since then, with nearly 60% of all paid media revenue now coming from music ad revenue.
Digital music ad sales also saw an increase in 2016 and 2017, with more than 1.3 billion music ad impressions, Mixcloud reported.
There are also other new types of ad-supported music ad formats emerging, such as those that are meant to be played during paid-for live events and on TV shows.
Some ad formats such as Spotify Premium, which can be used for up to 10 ad impressions per second, are expected to become more popular over time, as they offer higher ad revenue and greater reach.
While some ad-backed formats are still limited in terms of reach, others, such the new Audible format, have the potential to deliver a bigger impact on advertising revenues.
Audible is currently being used to support AdSense and Google AdWords campaigns, and the company has reported an average ad-powered ad impressions of about $1 per ad impression in the US and Canada, and $2 per ad impressions in other countries.
Other formats, such YouTube Play Music, are also being used in some ad formats, with an average of about 4.5 ad impressions a second being achieved with AdWords and Adsense.
Finally, some music ad networks, such Apple Music in particular, are using ad-driven formats in an effort to increase revenue and reach.
This includes offering up to 50 ad impressions on the first listen to some of their most popular music streams, and then using those ad impressions to drive up ad revenue as users tune in to listen to the stream over time.
Apple Music has also experimented with ad-friendly formats such AdSense-based formats, which are designed to be shared on Facebook and YouTube.
As part of this experiment, Apple has also offered a Spotify Premium ad format which allows its users to buy additional ad impressions for ad-sponsored music ads.
What’s more, AdSense is expected to see more of a surge in ad-streams, as advertisers are increasingly turning to ad-centric formats for their ad revenues, MixCloud reports.
It has also been reported that Google AdSense will see an increase of revenue and share for ad streams by the end of the year.
Streaming services, on the other hand, are likely to see a decline in ad ad revenues as people become more content-aware.
Additionally, the rise of ad formats will increase the amount of advertising space that