Your Introduction to Spotify Advertising

Person listening to Spotify on mobile phone

Between nuanced targeting features, reliance on first-party data, and a user base of actively engaged listeners, audio ads are an important element in the future of digital marketing. One of the kings of the audio landscape is none other than Spotify.

A distinguishing feature of Spotify advertising that sets it apart from other streaming hubs like Amazon or Apple is its unique take on audiences. Spotify sorts its own content by genres, devices, real-time contexts, and more, which allows advertisers to serve more relevant messages to listeners. 

Why Should Your Brand Advertise on Spotify?

Amongst the different music streaming platforms, Spotify is the world’s most popular audio streaming subscription service with over 406M users. Because listening to music or podcasts is a personal and sometimes an emotional experience, this audience is truly unique in many ways. Spotify has been able to identify just the right ‘screenless’ moments to connect with their users: curated playlists. Spotify’s personalized playlists based on individual taste, preference, and habit allows brands to share highly customized and relevant content in real-time contexts with potential customers.

Because Spotify’s algorithm inherently builds off its listeners’ unique interests, tastes, and content selection, it does not rely on third-party data. A self-sufficient and highly personalized platform is perfect for the impending cookieless future. Spotify advertising could be a new tactic in your omnichannel growth strategy to increase brand awareness and reach new top-of-funnel customers.

Spotify can help diversify top-of-funnel customer acquisition. According to Spotify, 41% of their ad-supported listeners are millennials and Gen-Z. Spotify offers an opportunity for brands to get in front of younger audiences and connect with them conversationally in their day-to-day lives. Through Spotify’s own audience and content creation, marketers can reach listeners based on their demographics, behaviors, and contexts while they stream music and podcasts. What’s more, more than half of Spotify listeners use the ad-supported version.

Spotify also creates hubs around cultural and personal moments to spotlight movements like Black History, Pride, and Female Artists. Brands whose business strategy align with social movements can find a great voice to cater to listeners who share their values. Spotify is twice as likely to be seen as trend-setting and enjoyable compared to radio.

Getting the right message to these active and open listeners can greatly help brands capture attention and interest from prospective customers.

Spotify Advertising Features

With a simple to use self-serve ad studio and free creative tools to build and produce your audio ad, campaigns can be set up in a matter of a few hours. 

On the music streaming side, ads are placed between songs. For podcasts, ads are placed at the beginning, middle, or end of the show.

Ad targeting on Spotify relates to highly personalized content and audience creation. Because ads are hosted entirely within Spotify’s app, targeting and measurement will not be affected by the third-party cookie deprecation or Apple’s iOS privacy updates. Marketers can target based on Spotify’s curated fan based, interest groups, and genres. The streaming platform reportedly has over 5000 genres in its database that include the traditional music genres, as well as others that may fit unique brands better, such as escape room, bubblegrunge, and more. Additionally, brands can leverage Spotify’s pre-made playlists that include All Out 2000s, Alternative Hip-Hop, Power Workout, and more to find their audience niche.

Spotify recently released CTA cards — clickable ads that pop up for podcasts within the Spotify app. CTA cards appear in tandem with select podcast ads for an additional visual cue that allows the listener to click to a brand’s website or relevant product page. While this does bring Spotify a smidge closer to traditional forms of advertising with visual cues and clickable content, the novelty of audio ads cannot be understated.

Social shopping integration is in the works. Through this feature, Spotify would integrate ads within an artist’s page. This could be used to highlight partnerships and influencer relationships, as well as connect brands with a specific lifestyle or mood an artist displays. In the midst of the pandemic, Spotify found that 53% of their Millennial and Gen Z listeners actively sought content from diverse creators. Getting on different creators’ platforms could go a long way to developing new customer relationships.

NetElixir’s Insights

Businesses can benefit from greater brand exposure through Spotify advertising. Spotify is a new and unique channel for brands to consider when thinking about where else they can go for top-of-funnel branding. Audio ads create more positive feelings in listeners and garner a higher retention rate. In the evolving digital future, having a presence on Spotify can open new channels and opportunities for brands.

NetElixir can help in researching brand placement moments on Spotify. Our experts can assist with omnichannel strategy and optimizing ad content that best represents your brand.

Read more about how we spiced up our client’s Spotify ads strategy!

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