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SPOT
Business Insider
17 hrs

Spotify is soaring, but its ad business is floundering. Here's why.

1. Spotify's ad revenue is struggling, targeting 20% overall revenue soon. 2. CEO acknowledges slow ad growth; customer service is declining. 3. Leadership change aims to improve advertising execution and strategy. 4. New ad partnerships and products are anticipated to drive revenue. 5. Spotify’s focus on subscriptions hampers ad business growth.

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FAQ

Why Neutral?

While Spotify's user growth is strong, ad revenue decline raises concerns. Historical examples show ad revenue struggles can influence investor sentiment.

How important is it?

The article highlights major weaknesses in ad strategy affecting revenue potential, thus impacting SPOT's valuation.

Why Short Term?

Immediate ad revenue performance impacts investor confidence, yet the long-term outlook may improve with strategic changes.

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