MightyTV is Spotify’s second acquisition in 2017, following Sonalytic
Spotify, the leading commercial music streaming platform, announced that it has acquired MightyTV- a video recommendation app- to bring meaningful recommendations based on programmatic algorithms. The latest acquisition will enable Spotify to improve its recommendations, creating a more personalized experience for app users. The terms of the deal remain undisclosed. However, the entire team of MightyTV will join Spotify and their Founder and CEO, Brian Adams will be Spotify’s VP of technology, focusing on its marketing and advertising platforms.
By acquiring MightyTV, Spotify intends to bring programmatic at the core of its user experience, helping brands create a powerful native engagement that stays true to their products among millions of subscribers.
“Spotify has built the leading marketplace for fans and creators,” said Brian Adams. “It’s an enormous opportunity for me and the team to help create native brand experiences that stay true to a product that millions love,” he added.
The New York-based video streaming app has raised $4.25 million in two rounds of funding. Interestingly, Adams is also the co-founder and CEO of AdMeld, an advertising optimization platform for publishers that caught the eye of high-tech powerhouse Google and was later acquired by it in 2011 for $400 million.
MightyTV will Facilitate programmatic ad buying for Spotify
As margins on streaming music are thin-to-negative, building out a bigger marketplace through programmatic ads would make sense for Spotify.
The recent acquisitions improve recommendations and allow advanced personalized targeting method for Spotify’s advertisers. It also expanded its user base from early adopters to more casual listeners who may not know what they want to listen to.
The music service provider would use tools to collect more data on these listeners to customize targeting and serve them audios ads, or promote music and concerts or related merchandise on behalf of labels and artists, as per their taste so that they are more receptive.
“The content recommendation system MightyTV has built is incredibly aligned with how we think about advertising technology and marketing personalization,” said Jason Richman, VP of Product at Spotify, in a statement. “Brian and his team will help us continue to innovate on free monetization and extend our leadership position in programmatic audio.”
Competitions Among Digital Media Companies to Go Big on Programmatic
Spotify allowed programmatic buying across its audio ads globally, in July, to target audiences based on age, gender, genres, and playlists in real-time. It has been making the right moves towards designing experiences that grow their customer base to deal with the encroaching streaming music competition from Apple, Pandora, Google, Amazon and more.
Spotify has acquired nine companies so far, including Soundwave, CrowdAlbum, Cord Project and Seed Scientific. Though it’s too early to speculate about how MightyTV would monetize its presence at Spotify, it’s clear that the video streaming platform would add programmatic capabilities for enhanced customer experience across touchpoints.