WARC Media’s latest “Platform Insights” report shows that Spotify has seen steady growth in ad revenue – the platform achieved double-digit growth in its advertising business over the past six quarters, which could lead to positive results in the coming years, according to WARC.

The report suggest that Spotify’s global advertising revenue will exceed $2 billion for the first time by the end of 2024, with year-on-year growth of 13.0% and revenue growth of $2.6 billion by 2026. Financial services will be the third-highest spending category on the platform in 2024, with spend reaching $339.4 million.

So far, growth in Spotify’s advertising revenue has outpaced the growth in music advertising overall, driven by an increase in impressions sold on both original and licensed content through the Spotify Audience Network. The audio streamer is also looking to increase ad revenue by launching generative AI tools such as Quick Audio, said WARC.

The implementation of video in podcasts has been another driver of the app’s advertising growth. Spotify claims to have experienced a 44% year-over-year increase in video streams over the past 18 months, with an increasing number of users watching podcast content. Gen Z is leading this growth, with 136% more time spent watching video on Spotify year-over-year.

More than 319 million Gen Z users engage with its “most immersive features,” according to Spotify, with in-app video a key area of interest. The platform says it has seen an 81% year-over-year increase in video streaming among Gen Z users, who also account for 57% of Spotify’s audiobook listeners.

WARC also found that Spotify’s video ads outperformed Adelaide’s attention benchmark for online video by 58%, beating platforms such as TikTok, Instagram and Snapchat.