Eliminating Price Floors: Impact on Podcasters and Triton Digital's Flexible Solutions

Last month, Spotify implemented a new policy to eliminate price floors for the Spotify Audience Network (SPAN). This change poses challenges for buyers and ad networks outside of SPAN in delivering ads on Megaphone-hosted shows.

The absence of price floors disrupts competitive pricing, as SPAN will now always return an ad, irrespective of CPM. This could reduce publishers' revenue and impact ads' relevance to listeners.  

Currently, the Megaphone ad ecosystem functions on a waterfall model. Ad requests first target direct-sold inventory, then SPAN, and subsequently other programmatic exchanges or third-party tags. Each layer competes on price, maintaining a structured hierarchy.  

The Impact of Removing Price Floors   

By stepping away from programmatic standards, Spotify is further fortifying the walls surrounding its ecosystem, which could lead to fewer buyers' access to podcast inventory and, thus, less revenue for publishers. This shift towards more controlled environments aims to streamline operations within specific platforms but also challenges those relying on market competition. The absence of price floors limits competitive buyer bidding and reduces the publisher's revenue growth over time.  

Bryan Barletta, founder of Sounds Profitable, commented on this change: "This action will have a sizable impact on publishers on Megaphone who have invested considerable effort into their programmatic relationships. SPAN sitting on top of programmatic, and not competing with it, prevents a publisher from maximizing their ad inventory and relinquishing control fully."   

The Implications for Podcasters   

According to reports from Spotify's announcement to publishers, Megaphone clients can set their inventory to direct sales-only for ads uploaded to Megaphone.  

The new Spotify policy claims to give publishers more direct control over their inventory. However, limited by staff and resources, many podcast networks and content creators need help. They primarily focus their direct sales efforts on host-read and baked-in sponsorship ads, which are highly valued for their personalized touch and authenticity. This narrow focus on premium ad spots means a substantial portion of their inventory is often left unmanaged. As a result, this remaining inventory risks going unsold, leading to missed revenue opportunities and underutilized content. Thus, the promise of greater control from Spotify's new policy may only bring tangible benefits to these creators with additional support and resources to effectively manage and monetize their ad inventory.  

However, alternative approaches are available for podcasters seeking flexibility and control. For instance, Triton Digital offers solutions that enable podcasters to manage their monetization effectively. Megaphone clients can utilize another programmatic exchange to sell available impressions at healthy CPMs, optimizing inventory yield. Triton's SSP helps publishers increase revenue, add diversity of advertisers, and improve sell-through rates.  

Triton Digital's Flexible Solutions   

Triton Digital provides monetization transparent, flexible options for monetization through platforms like Spreaker and Omny Studio that empower podcasters to stay in control of how their podcast inventory is sold. Both platforms feature built-in, professional-grade ad servers for direct sales and connect podcasters to buyers worldwide through an accurate programmatic exchange. This setup allows podcasters to monetize their shows from various demand sources, providing control over selling inventory at rates and priority at their discretion.  

• Spreaker offers robust hosting tools with a revenue share business model similar to other leading platforms. The sign-up process is straightforward via Spreaker.com, making it an accessible option for podcasters seeking to maintain revenue control.  

• Omny Studio offers a comprehensive suite of podcasting services to enterprise podcast networks. It provides a sophisticated platform for managing large-scale podcast operations, ensuring that even the most complex needs are met.   

Conclusion   

Eliminating price floors marks a shift of control from the publisher to the company operating the programmatic exchange. This approach may present challenges and limitations for some podcasters in a rapidly evolving industry, but Triton Digital offers a compelling alternative solution. By prioritizing flexibility and power, Triton's tools and platforms put podcasters in the driver's seat to maximize revenue and maintain independence.