Spotify ad revenue grew 10% to €482m. Music ads sold at softer prices

Spotify made €482 million from advertising in the third quarter of 2026, according to the quarterly update it filed with the US Securities and Exchange Commission on October 22. That is 10% more than the €437 million a year earlier, or 9% at constant exchange rates. The filing puts total revenue at €4.97 billion.

Ads are still a small slice of the business. Spotify has 499 million users on its free, ad-supported tier and 306 million paying subscribers. Yet advertising brought in less than a tenth of revenue.

Spotify’s automated ad sales drove most of the growth

The filing says automated sales channels “remained the largest contributors to overall advertising growth”. These are ads bought through auctions and programmatic platforms, including the Spotify Ad Exchange, rather than through a sales team. Spotify did not give a separate figure for them.

Music ads grew because Spotify sold more impressions. That was “partially offset by softness in pricing”, the company wrote. In podcasts, growth came from sponsorships on shows Spotify owns or licenses. Some podcast firms are taking a different route: Goalhanger will sell its podcast ads in-house from 2027.

A year ago, chief financial officer Christian Luiga called 2025 a transition year for advertising and expected things to improve in the second half of 2026, Radio Ink reported at the time. Ad revenue was flat in the third quarter of 2025 at constant currency.

Spotify Memberships launched in 34 markets on October 20

Two days before the results, Spotify started rolling out Memberships. Podcast creators can now charge fans for bonus episodes, early access and fewer ads, and keep 90% of the money. A show needs three episodes, 100 listeners and 100 hours of listening on Spotify in the past 30 days. The launch markets include the US, the UK, Germany, France and Poland.

Memberships sit on top of the Spotify Partner Program, which pays eligible creators based on engagement. Spotify says the new product does not replace ads or sponsorships.

Spotify expects €5.2 billion in revenue in the fourth quarter

For the last quarter of the year, Spotify forecasts 818 million monthly users and €5.2 billion in revenue. It gave no separate forecast for advertising.

Advertisers buying through auctions gain the most from these numbers: there is more Spotify inventory, and prices around music are softer. Podcasters with a loyal audience gain a second income that does not depend on ads at all.