CEO of Spotify Expresses Dissatisfaction with Advertising Operations
Spotify Addresses Execution Challenges in Ads Business
Spotify, the popular streaming platform, is taking steps to address execution challenges in its ads business. The company's founder and CEO, Daniel Ek, acknowledged that Spotify has been moving too slowly and that it is taking longer than expected to see results. However, Ek emphasized that this is an execution issue rather than a strategy problem[1][3][4].
To accelerate growth and improvement, Spotify is expanding its monthly active advertisers, which have grown over 40% year on year. The company is also receiving positive feedback from brand partners excited about new and automated ad tools[1].
Spotify's ambition is to leverage its highly engaged and loyal user base. Currently, subscribers represent about 3% of the world population, with a goal to reach 10% to 15%[1]. This provides advertisers with valuable access to audiences.
In addition, Spotify is experiencing strong trends in video content. The platform is seeing a rapidly growing number of video podcasts, which see much higher user engagement. Users who watch video podcasts consume 1.5 times more content than those who only listen, suggesting greater opportunities for advertiser impact[3].
Despite a fall in ad-supported revenue by 1% year-over-year as of Q2 2025, Spotify reported overall strong financials driven by user growth and subscription income[1]. CEO Ek and other executives remain confident about the long-term potential and are moving quickly to get the ads business on the right path, expecting improvements to contribute toward a stronger 2026[1][4].
Alex Norström, co-president and chief business officer at Spotify, expressed confidence in the potential of the ads business. Norström referred to Spotify as an enviable brand, offering advertisers access to a highly engaged loyal user base[1].
In summary, Spotify’s plan for growth and improvement in its ads business focuses on accelerating execution by enhancing advertiser tools, driving higher adoption of ad products, leveraging new inventory types such as video podcasts, and fully monetizing these opportunities within the platform’s large and engaged user base[1][3][4].
Spotify intends to utilize its strong technology infrastructure to enhance advertiser tools and drive higher adoption of ad products, thereby improving the execution in its business. Additionally, Spotify's focus on health and wellness content, such as video podcasts, offers advertisers unique opportunities to engage audiences, bolstering the company's finance and revenue streams.
