Australia first in world to test ad-skipping for free Spotify users

Australia has been chosen by Spotify as the first country in the world in which to test ad skipping for free tier users.

Called Active Media, the way it works is that, like Premium subscribers, free users can now click any time to jump ahead to the music or video they’re consuming, Ad Age reported.

This way the algorithm will learn to sense which ads the user wants or does not want – similar to the way its Discover playlist operates.

This allows Spotify to personalise the ads directed at the user. The advertiser is not charged for the ad that was skipped.

By testing in the Australian market, Spotify will monitor if the inevitable short-term dip in ad revenue will eventually be replaced by a growth as advertisers learn to target the users more effectively.

“Our hypothesis is if we can use this to fuel our streaming intelligence, and deliver a more personalized experience and a more engaging audience to our advertisers, it will improve the outcomes that we can deliver for brands,” AdAge quoted Danielle Lee, global head of partner solutions at Spotify.

Last month, Spotify revealed that its monthly active users now number 180 million over 65 territories.

Ad revenue grew 20%, year on year, to $158 million.