Spotify has informed creators about changes to its Ambassador Ads program through an email, and the changes bring bad news for white noise podcasters, as they will no longer be allowed to participate in the ads program. The program pays creators to read ads promoting Spotify content.
Starting October 1st, white noise podcasters will no longer be eligible to participate in the program, according to Bloomberg. This could put a dent into these podcasters’ earnings, as some were earning as much as $18,000, as Spotify was paying them for the ad placements. Spotify, on the other hand, has been losing $38 million in profits a year because of these types of podcasts.
Ambassador ads may not be effective on white noise podcasts as the listeners are not as engaged as they would be with a conversational or narrative podcast. These shows are mostly played for background noise, and the listeners are passive, so Spotify did not see much benefit from spending on these podcasters, and that is why it decided to exclude white noise podcasters from the ads program, tells a person familiar.
White noise podcasts, which usually just have been soothing sounds of waves, fans, and vacuums on a loop and do not have any dialogue, have gained immense popularity, garnering over 3 million hours of listening each day.
These podcasters will still be able to earn money through automated ads or listener support, but Spotify has decided to not spend their marketing budget on white noise podcasts. However, it is to be seen how much it would affect Spotify’s earnings.