https://www.wsj.com/articles/spotify-has-big-ambitions-for-ad-business-1502964001
The article outlines Spotify's prior strategy of generating streaming awareness and creating a "network" effect of users. Now that Spotify is public, it is attempting to convince investors that there is a long runway of ad growth ahead of it due to the captivated user base.
While I think it is smart of Spotify to drive ad revenue, it will also be difficult to prove to investors that users are open to paying for services while also being subjected to advertisements. The vast majority of revenue still comes from subscriptions with core users.
Further the CMO points out that marketers are chiefly concerned about "brand safety" in this competitive environment.
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