High numbers the first music streaming platform in the world: founded in 2006 by Daniel Ek, the Swedish music service on demand currently has three hundred million users across the globe, one hundred million paying subscribers and has a turnover of around four billion dollars.
Between 2018 and 2019, the company has developed a series of advertising activities on free accounts: a great opportunity for advertisers, who will be able to reach a specific audience directly.
“Reach people while they are streaming what they love”, this is the motto of Spotify Ad Studio, Spotify's advertising platform that allows you to produce easy-to-create and engaging ads, all in minutes.
You should not undervalue the market of streaming, since today it represents 62% of world sales of music.
Therefore, even if Spotify Ads may not be the first solution that springs to mind when thinking about an advertising campaign, it is good to take it into consideration and exploit the potential of this new tool.
The advertising formats provided are essentially of four types:
- Audio: An advertisement plays between songs during active listening sessions. The ad is accompanied by a clickable display banner, in the cover area, which can lead users to a specific landing page;
- Video: includes Sponsored Sessions, for which the brand offers "freemium" users thirty minutes of ad-free listening at the end of viewing the video ad, and the Video Takeover, which is positioned instead between listening to a song and another within the advertising breaks;
- Display: includes overlay banners, also on the home page, generally available for the desktop and web app versions of the audio streaming platform;
- Sponsorship: Through the "Sponsored Playlists" brands can associate their name with the most successful playlists managed or owned by Spotify, making exclusive use of the advertising spaces within the latter.
What makes Spotify Ad Studio so effective, beyond the large audience it can target?
In fact, Spotify Ads has two innovative factors: first, it is equipped with Streaming Intelligence, an artificial intelligence function that allows the understanding of its users, their moods, through the analysis of listening data, their musical tastes and the contexts in which they are listening to music.
The second factor concerns the propensity of users to listen, an element that affects their purchase intentions up to two times more than classic display ads.
The Spotify audience, that is, is more open, receptive and well disposed towards the services and products that are advertised, if through well-studied and targeted content.
Spotify Ads campaigns are used both to create awareness around a specific brand, and to promote concerts, songs, bands and music content in general.
The campaigns, therefore, can be differentiated according to the objectives of a musical artist who wants to make himself known, of a company that deals with entertainment and merchandising or the promotion of products and companies.
Targeting can take place on a geographical, demographic, gender basis but also on listening behaviour: Spotify Ad Studio allows you to select the audience based on musical tastes and releases three main options to choose from: all musical tastes, by genre music and finally by playlist category.
Within Spotify Ads it is also possible to estimate the coverage of the advertising campaign carried out in relation to the defined targeting, through which it is possible to know interesting values, such as:
- Cost per ad shown: the estimated cost of each ad impression;
- Budget delivery: the indicator that shows the coverage of the target defined in relation to the allocated budget;
- Estimated ads shown: the quantity of ads that can be delivered estimated, in relation to the defined target and allocated budget;
- Estimated reach: the estimated coverage of the defined target, in relation to the allocated budget.
With a simple and intuitive ad management interface, Spotify Ads proves to be a tool to be considered in order to reach various audiences more effectively.
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