Deezer is making a significant push into the US advertising market, expanding its partnership with media giant Global and its digital audio ad exchange, DAX.
The two companies already have a successful working relationship in the UK, where Deezer leverages DAX to connect with advertisers. Now, they’re bringing that synergy across the Atlantic, opening up a wealth of opportunities for both parties. For Deezer, it’s a chance to tap into DAX’s extensive network of US advertisers and boost its revenue streams. For Global, it solidifies DAX’s position as a leading player in the digital audio advertising space.
“With this milestone we aim to elevate our presence in the US and we’re looking forward to collaborating with DAX and their network of advertisers,” said Mazen Abdallah, Deezer’s VP of Brand Partnerships and Advertising Sales.
While Deezer’s current advertising revenue is a relatively small portion of its overall financial picture, this expansion suggests a strategic shift towards increasing its advertising focus. In the first half of 2024, Deezer reported total revenues of €267.9 million. The vast majority, €258.4 million, came from direct and B2B subscriptions, leaving just €9.6 million categorized as “other revenue.”
This partnership raises some interesting questions. Will Deezer’s increased focus on advertising impact its subscription model? Will it introduce new ad-supported tiers or explore different ad formats within its existing offerings? And how will this expansion influence the competitive dynamics of the US digital audio advertising market?
