Spotify Loses €53 Million from Direct Advertising as Auction Buying Saves Growth

Spotify's advertising revenue in the third quarter of 2026 reached around €482 million, an increase of 9% in constant currency and 10% as reported, accounting for about 10% of total revenue of €4.97 billion.

Direct ad sales fell by €53 million year-on-year, while auction-based channels added €91 million. The figures show that growth came from programmatic buying at a time when direct sales declined.

Chief Financial Officer Christian Luiga said biddable buying now accounts for 40% of the business, and that advertising is emerging from a longer period of low single-digit growth.

These numbers reflect a shift in how ads are sold on the platform, moving from negotiated direct deals to automated auction channels that set prices based on demand.

What do these terms mean?

Programmatic buying: Purchasing ad space through systems that automatically set prices and ad placements instead of direct negotiation.

Auction channels: Ad spaces sold in an auction that drives prices up based on competition among advertisers.

Constant currency: Calculating growth at fixed exchange rates to exclude the impact of currency fluctuations.

Advertising revenue: Amounts collected by the platform from selling ad space, distinct from subscription revenue.