Spotify, the most widely used music streaming service in the world, is running a new test down in Australia where it’s allowing users on its free ad-supported tier to skip both video and audio ads as many times as they like. While it might seem counterproductive at first, this test may help Spotify better target users for advertisements down the line.
The idea behind this test, as the company explained to Adage, is that users are most likely to skip the ads that they don’t want to see. Advertisers won’t have to pay for the ads that are skipped. This will give Spotify data about the kind of ads its users actually prefer and it will thus be able to use that data to better target its users for advertisements.
“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,” said Danielle Lee, global head of partner solutions at Spotify.
Spotify has limited the test to Australia where users on the free tier are now able to skip all ads as many times as they want. The streaming service currently doesn’t allow its free users to skip any ads at all elsewhere. That’s how it lets them stream music for free.
Lee mentioned that while the test is limited to Australia, Spotify is willing to roll it out globally, but stopped short of saying if this will actually happen. It will likely depend on the results it gets from this test.
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