SoundCloud ads were recently introduced by the world’s second most popular music sharing site (behind the all-powerful YouTube) in an effort to grow the amount of money that uploaders can earn. As of now, the revenue sharing is only available to a select few. I’ll break it all down in the article below!
As is tradition here on the Devumi blog, every SoundCloud post also features my favourite track on SoundCloud right now at the bottom. Read all the way through to find it!
SoundCloud ads are introduced: What you need to know
People sign up for Soundcloud accounts for a number of reasons. To get noticed, get a record deal and become mega-rich is one. Connecting with fans and sharing new music is another. Whichever reason you have for being on SoundCloud, these are the two account types, and a new third:
- Partner – the free account with limited upload time
- Pro Partner – a fee based account that offers users more upload time, better tools and more stats
- Premier Partner – the new invitation only level where you can earn money off of SoundCloud ads
All of these ads are going to be placed on to the Premier Partner accounts with their consent only. This isn’t YouTube where ads seem to show up at random. The rollout will be slow as they work to make sure it’s a smooth transition, and as they work to make sure that content/music providers are happy with what is being done as far as monetization of their music through SoundCloud ads is progressing.
How the SoundCloud ads will work
The first thing to note is that it will be a revenue sharing process. More plays = more money, this is not a one time payment sort of deal. At launch, the new SoundCloud ads will only air within the USA on the SoundCloud website and mobile app. Ads will not play in tracks that are embedded. Check out my sample track below: no ads playing!
SoundCloud ads will, reportedly, see a “majority” of the money go to the artist. No percentages have been discussed at this time, but I’m going to go out on a limb and say that the artists will see at least 51% of all SoundCloud ad revenue. #smartaleckcomment
To quote Alexander Ljung, SoundCloud’s chief executive, on SoundCloud ads:
“We see the (SoundCloud ad) program as something for all creators. We’re launching with a small set, but ultimately we want to get all creators, whether music or audio, big or small, all over the world to be able to make use of it. It’s almost the third chapter for SoundCloud. We started off building great tools for creators to be able to make use of the web, then our second chapter was making it much more accessible for listeners, so those creators could build a much larger audience. This third chapter is about allowing people to start monetizing that audience.”
Monetizing your audience is a hot topic across all of social media, SoundCloud ads are how both you and SoundCloud are going to make that money. That’s why it is so important to start getting more SoundCloud plays with something like our SoundCloud plays service right now. With a popular account, you’ll have more opportunities to gain natural listens and get the attention of agents.
As I reported a few weeks ago, some of the major labels are buying into SoundCloud after years of unrest between them over the music sharing platform. SoundCloud ads are a way that they’ll be able to come even closer together, as record labels love to make money more than they love to share music, and giving SoundCloud even more credibility in the long term. Translation: They’re not going to get Napsterized!
What will the new SoundCloud ads be
For the most part, the new SoundCloud ads will be a mix of:
- Radio style audio ads
- Display ads on mobile
- Native advertising for other SoundCloud tracks and profiles
This will come in the form of sponsorships and contests that are run with individual creators where they work one on one with creators. A few of the advertisers at launch include Comedy Central, Red Bull, and Jaguar. A fairly impressive list.
What they will not be is forced on everyone. Rumors of an impending fee based subscription for listeners should be introduced. For a monthly fee you won’t see or hear any SoundCloud ads, another subtle monetization that SoundCloud ads are going to kick-start. I’ll call it ‘unvertising.’
With SoundCloud ads spreading from those first few invites, you can prepare your account for the fact that it will not only spread your music, but also make you some money too. Read up on our other SoundCloud articles for more.
As promised, my current favorite track on SoundCloud, there is some NSFW swearing on the track:
I <3 music image from Pixabay user OpenClips.
Feature image via Jose AS Reyes / Shutterstock