Google Acquires Songza To Bolster Music Streaming, Online Advertising

Google acquired music streaming service Songza Tuesday to improve on its music offerings and support an emerging trend to put music in online advertisements. The service works on Android and Apple iOS.

There are no immediate changes to the platform, but in the coming months Google said it will explore ways to bring the best features to YouTube, Google Play Music and other products.

Songza built the streaming music technology into a service that curates playlists to give listeners the perfect music all the time based on data. For now, employees will remain in its Long Island City headquarters and eventually move into Google’s New York City office.

More advertisers have begun to plug music into ads. Platforms from Klick Push Cofounder Benjamin Jorgensen are not just thinking about streaming music services, but rather making strides in integrating music into online advertising.

Perhaps providing a clue to the future of Songza, a page on the company's Web site tells us how "advertisers can leverage the Songza platform to create lifestyle-enhancing experiences for customers that pair the perfect products to the perfect moment."

Songza can deliver your brand message through native advertising as well as pre-roll video, pre-roll type-in ads, IAB Rising Star units and traditional media placements across mobile and desktop, per the company.

Ad-supported mobile music revenue topped $1 billion in 2013 in the U.S., and should reach $1.64 billion in 2014, per eMarketer. In the U.S., ad spending for online and mobile radio services rose 26.3% in 2013 to reach $1.65 billion. The market will increase another 23.2% in 2014, reaching $2.04 billion. While air radio ad spending dropped 1.2% in 2013 and will only grow another 1.7% in 2014, still totaling $15.47 billion this year.

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