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You definitely don’t think about Spotify first when considering how to spend your marketing budget. Nevertheless, you may have thought about radio, a pretty conventional marketing channel. You might even consider allocating some of your budget for web marketing to YouTube.
Spotify is quickly overtaking other music streaming services as the preferred method of music consumption, even though many people continue to listen to music on conventional radio stations and music videos are among the most popular types of material on YouTube. A portion of your marketing should therefore be focused on Spotify.
By the end of 2019, Spotify will have 271 million users, including 124 million members, across 79 regions, making it the most widely used audio streaming subscription service worldwide. They assert that they are currently the industry’s main source of income.
Fortunately for advertisers, Spotify has developed a well-organized advertising market after seeing its potential for successful marketing.
Spotify Advertising Has a Lot of Potential
You could consider Spotify to be two things in certain ways. You have Spotify’s free, ad-supported product on the one hand. However, the most dedicated Spotify users switch to Spotify Premium, and that is ad-free. Spotify closely resembles the traditional freemium business model.
The free version of the application is now widely used, despite the fact that there is minimal room for promotion on Spotify Premium. Spotify has 271m monthly annual users as of its 2019 Annual Report (MAU). 207 million more than the previous year. The number of premium members climbed from 96m to 124m over the course of 2019. Since the report also claims that they had 153m monthly users as of 2019, up from 116m in 2018, there may be some overlap.
Examining Spotify’s financial results for 2019 is another approach to assess the significance of advertising on the platform. Although Premium memberships account for the majority of Spotify’s income ($1,638 million), the company nevertheless made a considerable sum from advertising ($217 million). The fact that advertising revenue increased 27% from the prior quarter is maybe more significant than the less significant 5% increase in profit from Premium subscribers.
The vast reach of Spotify is its greatest asset. It is without a doubt the most popular music streaming service in the world today. Additionally, don’t undervalue the influence of audio streaming. Streaming now represents 62% of all music sales worldwide, and that figure just includes Premium subscribers; it ignores those who stream music for free and must so endure commercials.
Why Spotify Ads?
Similar to Instagram and Facebook Spotify offers a formal marketplace for advertising. This makes the procedure of Spotify advertising straightforward. In order to simplify the advertising process and give potential sponsors a variety of possibilities, they established Spotify Ad Studio in 2017.
What is Spotify Ad Studio
The majority of people are now accustomed to the ad free listening model, thus Spotify’s free customers anticipate hearing advertisements as they listen. A subscription to the Premium service is willingly paid for by those who actively detest advertisements. This leaves those who are willing to accept hearing advertisements as the “price” of getting their favorite music for free streaming.
Over other apps, Spotify offers one advantage. Most people have at some point been on the radio, where there are commercial breaks in between songs. They are accustomed to listening to music with advertisements. However, Spotify is an improvement over the radio. You are independent of the program director’s whims and can make your own playlist.
How Does Spotify Advertising Work?
Let’s first look at how advertising on Spotify works. You can design a variety of advertising for Spotify, and oddly enough, not all of them are audio. This implies that if you believe Spotify to be where your target demographic spends their time, you can easily build an entire advertising strategy around it. Here are the ad types:
Audio Ads
Fortunately, Spotify don’t cut songs short to show commercials. Between songs, Spotify plays audio advertisements.
Regardless of your device, Spotify plays audio adverts on all versions of the app.
You may produce audio advertisements that are 15 to 30 seconds long. Technically speaking, a Spotify audio ad is superior to a radio ad. You can also make a picture that users can click to do an action, such as going to a certain landing page.
You can choose the musical genres that your advertisements will play. Make sure to concentrate on the types of music that your target audience like. It might be a beneficial idea to make reference to a certain geographic area in your material since you can tailor your adverts to that area.
It’s also critical to keep in mind that, despite its popularity with older audiences, the majority of Spotify’s users, thus the audiences, are Millennials and Generation Z. Don’t make those annoying commercials you frequently hear on the radio or watch on television since younger generations dislike loud, intrusive advertisements. Make sure your advertisement speaks to your target market or they will entirely ignore it.
You can choose the musical genres that your advertisements will play. Make sure to concentrate on the types of music that your target audience like. It might be a beneficial idea to make reference to a certain geographic area in your material since you can tailor your adverts to that area.
It’s also critical to keep in mind that, despite its popularity with older audiences, the majority of Spotify’s users, thus the audiences, are Millennials and Generation Z. Don’t make those annoying commercials you frequently hear on the radio or watch on television since younger generations dislike loud, intrusive advertisements. Make sure your advertisement speaks to your target market or they will entirely ignore it.
Video Ads/Visual Ads
When incorporating video in your advertisements, Spotify offers you two possibilities.
You may first create a Takeover video. Similar to audio commercials, you purchase a commercial spot here between songs, but instead of playing a still image, you play a full-screen video. However, it is obvious that this is only beneficial to the users of the program. It’s unlikely that users who just use the app to listen music will open it to view videos.
Additionally, Spotify has collaborated with a few companies to fund a musical performance.
Display Advertising On Spotify/Display Ads
Some businesses could favor using the same display ads that they do on other platforms. These resemble the display advertisements you see on other websites, which are frequently provided by Google Ads.
Display advertisements from Spotify appear for 30 seconds, typically at the top of the Spotify browser. Additionally, Spotify is astute enough to avoid superimposing your display ads over any other kind of advertising. Users who click on a display ad will be directed to the destination you specify, such as a landing page with a specific audience in mind.
Three different display ad categories are available to you:
This clickable ad is for a homepage takeover. Homepage takeovers are not clickable ads. For a while, the user’s/ Spotify’s Homepage alters to represent the promoted brand.
Megabanner resembles standard banner advertisements more.
Overlay: these start off as full-screen advertisements, however the customer may dismiss them by pressing the X. They occupy the bottom portion of the user’s screen. After 30 seconds, the user closes the browser if they haven’t clicked on an Overlay ad.
Sponsored Playlists/Sponsored Sessions
There are other options besides using the Spotify Ads Studio, which is how the majority of businesses officially advertise on Spotify. You also have another choice. One of Spotify’s benefits is the ability to generate music playlists that are accessible to everyone. To go along with your sponsored playlist, you may also provide an appropriate graphic.
Consequently, it is simple to make a playlist and name it after your company. Of course, you’ll want to compile a list of tunes that will resonate with your intended audience.
You can communicate with your target audience and approach your target market more effectively by making a sponsored playlist.
Spotify ad campaign
Here is how you can create your ad
- Select what you are promoting
- Upload a voiceover or any audio you want
- Choose and target audience
- Establish a budget and a schedule
- Decide on a budget and timeline for advertising perspective. You must invest at least $250. Your location and the targeting of your ads will determine the exact price you wind up spending. The campaign’s dates must be determined, and your funding must be allocated equally throughout the campaign duration.
- Create your ad