BRANDING NEWS: Spotify to improve brand experience for advertisers
Spotify is set to strengthen its relationships with B2B marketers and improve its advertising offering in order to turn a profit.
A move sparked by the company's rumoured failure to make any profit in 2012. The music service made $500 million in revenue in 2012 from both advertising and paid-for subscriptions, according to TechCrunch, but is believed never to have turned profit.
Vale, the former vice president of global research and strategic communications at mobile ad network Mojiva, will be responsible for growing revenue from brands. Spotify hopes this will be driven by its portfolio of advertising formats on its free-to-play service and branded apps.
The B2B marketer will also work with brands to create experiences on Spotify’s soon to launch redesign, which brings the service more in line with social media sites.