Incorporating Spotify Into Your Digital Marketing Strategy

Incorporating Spotify Into Your Digital Marketing Strategy

Spotify’s popularity has marked a radical transformation in people’s relations with, and the consumption of, music. Since launching in 2006, Spotify has (alongside Apple Music, Tidal and Amazon) helped drive a shift away from physical towards digital.

As of this year, the online music platform has over 159 million monthly users (an estimated 36% of the music streaming market share), including 71 million paying subscribers. And with their average user spending 25 hours per month streaming, people are consuming more, and more varied, music than ever before.

This has opened up a new opportunity for brands and marketers to reach a young, digitally-engaged audience within an audio environment.

As with Facebook, YouTube and Google, Spotify has turned to offering advertising as a way to generate additional revenue. Whilst only a small element of their business model, Spotify’s advertising arm has increased revenues by 41% since 2016. Kia, SmartWater, Reebok and Coca-Cola are all included in Spotify’s list of advertising partners.   

So what do brands need to know when it comes to utilising Spotify?

Reaching New and Diverse Audiences

One of Spotify’s biggest assets for advertising is its unique level of data – by constantly collecting information on user activity, throughout the day and across different devices. Subsequently, brands can learn in-depth information about their target audiences. Using insights into music tastes, platform behaviours and wider interests to improve their advertising tactics on the platform.

Beyond targeting by standard demographics (age, gender, location), Spotify’s comprehensive audience suite can be used by advertisers to segment by what people are listening to as well as when and how they’re listening.

Utilising Spotify’s Advertising Tools

If you’ve personally used Spotify, you likely know how advertising typically works on the platform. When streaming for free on Spotify your music will be interrupted every 15 to 30-minutes with a sponsored audio advert. When playing music through a desktop device, you may from time-to-time also experience video advertisements, as well as branded display ads.

These are their three main paid advertisement types for brands and marketers to use:

  • Audio Advertisement: A standard audio advert that plays between songs. This is typically accompanied by a clickable display that can be used to drive traffic to specific websites or landing pages.

  • Video Advertisement: With video being the fastest-growing form of online advertising, Spotify has offered brands more opportunities for video takeovers and branded video advertising – rewarding users with longer uninterrupted music than audio adverts.

  • Display Advertisement: Display advertising puts your brand front and centre of Spotify. There is the option of homepage banners/takeovers and overlay advertising.

Beyond these three ad tactics, Spotify enables brands to maximise their reach on the platform by exclusively sponsoring one of their owned & operated playlists. This enables users to reach a high volume of users on some of Spotify’s most popular playlists – such as New Music Friday.

Specialist brands can also use the Sponsored Playlist ad format to connect with listeners and their target audience during specific moments – for instance, when they are in the office, at the gym, studying, partying etc.

Branded Playlists

Arguably one of the most effective ways for brands to utilise Spotify as a marketing and branding channel is by creating their own profile and producing branded playlists. By adopting this tactic, brands have an opportunity to create long-lasting bonds with their target audience. They can develop their identity, connect themselves to key subcultures and enhance their brand personality.

However, brands must ensure they think about their ideal audience and customers first when they create playlists. By researching the types of bands and artists their target market follow on social media or listen to on Spotify, brands can curate the perfect playlist, with songs that will surprise and delight listeners – as opposed to randomly selecting songs from the Top 100.

Final Say

With channels like Twitter, Facebook and YouTube becoming congested with online advertising, Spotify offers companies the opportunity to connect with a young, culturally-engaged audience whilst capitalising on the emotional power of music.

Want to learn more about how your brand could adopt a Spotify Advertising Strategy. Talk to us today.