If you’ve been pouring marketing dollars into YouTube or TikTok, you’re going to want to pay attention to this. Spotify is stepping up its video game in a major way, and media buyers are already shifting their strategies to take advantage. For entrepreneurs trying to reach younger audiences without breaking the bank, this could open up some seriously smart opportunities.
Last month, Spotify signed a deal to stream ITV content in the U.K., following a similar agreement with Channel 4 in May. These partnerships allow Spotify to build out its video library without massive upfront costs, kind of like those content-sharing deals you see between Disney+ and other streaming platforms. But here’s what really matters for business owners: Spotify is aggressively courting video creators (many who originally built their audiences on YouTube), and they’re winning.
Brian Berner, global head of advertising and partnerships at Spotify, mentioned on The Big Impression podcast that “younger consumers are seeking more visual content on Spotify, starting with podcasts.” Translation? The platform your target audience already uses for music and podcasts is becoming a legitimate place to run video ads and connect with potential customers.
The Numbers Don’t Lie
Spotify reported its third-quarter earnings this week, and video streaming on the platform has increased 54% year-over-year. Let that sink in for a second. That’s not incremental growth. That’s a massive shift in how people consume content.
A recent Comscore report shows that as of August, more people ages 18 to 24 in the U.S. visit Spotify than social video platforms like Facebook and TikTok. Meanwhile, the percentage of U.S. households watching ad-supported content on YouTube fell 2 percentage points through August compared to 2024. If you’ve been watching your YouTube ad performance plateau or decline, now you know you’re not alone.
Berner added that video consumption in the U.K. is up more than 95% year over year. “We expect that to continue to grow as it’s how the industry is evolving and where we see the most growth, opportunity and demand,” he said. For women entrepreneurs trying to reach Gen Z and millennial customers, this is a trend worth watching closely.
Why Video Podcasts Are the Secret Weapon
This isn’t Spotify’s first attempt at video. The company has tried to expand beyond audio several times over the past decade. But this time feels different because they’re focusing on where the audience is already going: video podcasts. With EMarketer forecasting steady growth in video podcast viewers in the U.S. for the next few years, the competition for podcast engagement and video ad budgets is only getting fiercer.
Earlier this year, Spotify reported a 44% year-over-year increase in time spent watching video content. The platform isn’t just adding video as a side feature anymore. They’re building their entire strategy around it.
“By targeting podcasts, they are really following where the listening has gone, and changing the balance of their platform in response, rather than trying to lead their users down a whole new path,” said Jamie MacEwan, senior media analyst at Enders Analysis. “Podcasts are the biggest card in Spotify’s hand because many people watch podcast shows as entertainment and like to see the hosts’ interactions. Spotify is the default central podcast library for a lot of people, so this is a chance to stop people leaking to YouTube for video podcasts.”
If you’re thinking about podcast advertising or sponsorships, this shift means your ads could now reach people who prefer visual content without requiring you to produce YouTube-specific content or compete with the algorithm chaos on that platform.
Spotify Is Taking Video Beyond the App
Here’s where it gets even more interesting for business owners. Spotify isn’t keeping video content locked inside its own app. The company announced a deal with Netflix earlier this month that will see video podcasts from Spotify Studios and The Ringer appear on the streamer starting next year. Some of The Ringer’s shows will also show up on a free ad-supported TV (FAST) channel on Samsung TV Plus.
“Spotify’s investment in video and other emerging formats has elevated the consumer experience on platform, but I see that as the tip of the iceberg,” said Shasta Cafarelli, senior vice president of media investment at Tinuiti. “Their recent partnerships with major TV publishers and manufacturers like Netflix and Samsung are helping shape the next evolution of digital audio, bringing two of the most engaging mediums even closer together. The ability to connect these touchpoints more seamlessly presents an exciting development for marketers, and Spotify will undoubtedly play a central role in that strategy.”
For entrepreneurs, this means your Spotify ads could potentially reach people across multiple platforms and devices, not just within the Spotify app. That kind of extended reach used to require complex media buys across different networks. Now it might be bundled into one platform.
What This Means for Your Marketing Budget
Media buyers are already treating Spotify differently than they did even six months ago. “I absolutely see Spotify’s role growing,” said Nadia Pesina, head of brand media at PMG. “With consumption of video podcasts up dramatically, for Gen Z especially, and Spotify’s push into visual-first formats, you’ll likely see more budgets shift toward Spotify as a ‘content environment,’ not just an ‘audio channel.'”
That shift in perception is huge. If you’ve been thinking of Spotify as just a place to run audio ads during music streaming, it’s time to rethink that strategy. The platform now offers audio for “listen only” moments, video and display ads for when the app is in focus, and contextually relevant placements tied to mood and genre.
As Spotify strengthens its video business, its investments in ad tech (like the Spotify Ad Exchange, or SAX) have made it increasingly appealing for programmatic advertisers. Since launching SAX in April, Spotify has seen a 142% increase in the number of advertisers using it. That kind of growth signals that brands are finding success on the platform and coming back with bigger budgets.
The YouTube Problem That’s Working in Spotify’s Favor
Let’s be real for a second. YouTube has an AI-generated content problem that’s getting worse by the day. If you’ve run ads on YouTube recently, you know the frustration of seeing your brand show up next to low-quality, spammy content. Media buyers are noticing, and that’s creating an opening for Spotify to position itself as a premium video destination.
Pesina noted that for Spotify to fully capitalize on this moment, the platform must continue delivering on measurement, format diversity, and creative excellence so brands feel confident “it’s not just an ‘add-on’ but a core piece of the media mix.” If they nail that, she said, “media planners will increasingly treat Spotify as a central platform with reach, engagement and content-rich moments baked in, rather than a supplementary audio buy.”
For women-owned businesses trying to maximize every marketing dollar, this could be the perfect time to test Spotify as part of your media mix. The platform is growing fast, the audience is highly engaged, and the ad inventory isn’t as saturated as YouTube or Instagram yet. That combination usually doesn’t last long, so if you’ve been curious about Spotify advertising, now might be the moment to experiment before everyone else catches on.
The bottom line? Spotify is coming for YouTube’s video crown, and your business might benefit from getting in early while the competition (and costs) are still manageable.
Emily Sprinkle, also known as Emma Loggins, is a designer, marketer, blogger, and speaker. She is the Editor-In-Chief for Women's Business Daily where she pulls from her experience as the CEO and Director of Strategy for Excite Creative Studios, where she specializes in web development, UI/UX design, social media marketing, and overall strategy for her clients.
Emily has also written for CNN, Autotrader, The Guardian, and is also the Editor-In-Chief for the geek lifestyle site FanBolt.com
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