Spotify is a digital music, podcast, and video service that gives you access to millions of songs and other content from creators all over the world. Basic functions such as playing music are totally free, but you can also choose to upgrade to Spotify Premium. Spotify is a digital music streaming service that gives you access to millions of songs, podcasts, and videos from artists all over the world, like Apple Music.
Spotify is immediately appealing because you can access content for free by simply signing up using an email address or by connecting with Facebook. If you’re not keen on monthly subscription fees for Spotify Premium. Or just want to dip your toe in and test it out. It’s easy to get started and there’s no commitment.
Spotify Ads
Spotify ads are video and audio formats. That primarily run on the free version of Spotify in between songs, podcasts, and playlists. Spotify also offers “Custom Experiences,” (explained below) which may include Home Page Takeovers. That is aligned with the other ad formats for a visual and auditory experience.
Spotify Ads is also the largest digital audio advertising platform — giving marketers and brands a direct line into the ears of millions of ad-supported listeners. The breakneck velocity of Spotify’s rise is incredibly impressive. The platform’s active users spend on average 148 minutes a day listening to their favorite music app. And most of these users are enjoying Spotify’s free, ad-supported version.
It’s clear Spotify is seeing vast success. But let’s dive a bit deeper into the world of advertising within the increasingly popular platform. Here’s a quick look at what digital audio advertising is, and what Spotify Ads can offer brands and advertisers. And how you can start. It’s easier than you might think.
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 Spotify’s app can host ads entirely, third-party cookie deprecation or Apple’s iOS privacy updates will not affect targeting and measurement. Marketers can target based on Spotify’s curated fan base, interest groups, and genres. The streaming platform reportedly has over 5000 genres in its database.
That includes traditional music genres, as well as others that may fit unique brands better. Such as escape rooms and more. Additionally, brands can leverage Spotify’s pre-made playlists that include All Out the 2000s, Alternative Hip-Hop, Power Workout, and more to find their audience niche.
Kind Of Ads Spotify Runs:
1. Audio Ads On All Platforms
Audio ads are recorded messages that show up in between songs and play for between 15 to 30 seconds. The ads can appear across a variety of platforms and devices. Such as tablets, desktops, gaming consoles, TVs, and Bluetooth speakers. A display ad provides visual accompaniment to the audio ads.
2. Spotify’S Audio Ads Are Incredibly Successful
According to a Qualtrics Entertainment Study completed for Spotify. 61% of Spotify users have found new products and services by listening to audio ads. The ads have a brand impact 19% higher than other media outlets, with 51% of users on the free platform paying more attention to Spotify audio ads.
3. Sponsored Sessions
Spotify also offers sponsored sessions to its listeners. A sponsored session is a single commercial message delivered to a listener at the beginning of a 30-minute block of uninterrupted listening. Watching the sponsored session allows the listener to go ad-free for the next half hour.
Sponsored sessions are specifically for mobile sessions when the app is open. Each session is a max of 30 seconds long and contains a click-through URL to a specific page or website.
4. Video Ads On Mobile And Tablet
Spotify hosts 30-second video ads specifically for mobile devices like cell phones and tablets. The video can appear in either a portrait or landscape aspect ratio. Each ad must include sound and cannot have black bars or leaders. The video ads can also not include interlaced videos.
Spotify also hosts branded end cards with their video ads. These branded end cards are curated images embedded with third-party tags and tracking URLs.
5. Banner Ad
Spotify also offers visual-only ads on different areas of their platform’s home screen. Banner ads are more traditional image ads. That can be seen at the top of the web browser being used to play Spotify.
These ads are seen when the user first logs in. And as the listening session go on, the banner ad moves to the bottom of the webpage.
6. Homepage Ad
Businesses can take advantage of large, colorful brand messaging on the Spotify platform homepage. These clickable, rich media ads are not only large and prominent enough to capture users’ attention. But the ads are available for viewing in 24-hour segments. There are many design specifics this type of Spotify ad requires, all of which can be found in Spotify’s available ad resources.
7. Leaderboard Ad
Leaderboard ads are simple clickable banner ad that shows up on both the Spotify desktop player and the Spotify app. This image is shown exclusively for 30 seconds at a time. But only when the listener has Spotify open and active.
Leaderboard ads can also include a short animation of up to 15 seconds for a more dynamic and eye-catching visual experience.
8. Sponsored Playlist
Businesses can also take advantage of more unique advertising options, including the sponsored playlist. This sponsorship opportunity helps marketers get their ads in front of the people that align best with their products or services. Spotify has thousands of unique playlists for a Spotify user to enjoy, and brands can take advantage of this by having their ad played specifically for users listening to a said playlist.
Spotify Target Audience:
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Demographics
Spotify has first-party demographics data that gives insights into user age, location, gender, and languages.
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Behaviors
By being able to examine listening behaviors, advertisers are able to look into user interests and fan bases.
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Contexts
Spotify not only pays attention to listening behaviors based on music, but it also provides insights based on the podcasts that users listen to. In addition to just listening insights, because of its dynamic user experience, it can provide advertisers with context about users regarding the different platforms and devices that users use.
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Custom Targeting
Custom targeting is an option that is only available to advertisers that have requested to work with Spotify’s full-service sales team. This option can vary in availability depending on advertising goals.
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Spotify Advertising Cost
Prices depend on the length of the campaign, ad formats used, your country, the targeted audience, and the demand from competing advertisers. Spotify’s website states that the minimum cost is just $250 to get started for those using the self-serve platform, Ad Studio. For those with higher budgets, Spotify offers custom offerings that align with specific advertising goals.
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Advertising On Spotify
Millions of people tune into Spotify every day to listen to something of their liking, offering a wide range of insights and information regarding their interests, solely from what users listen to and care about. This implies that there is a wide range of data. That is available to advertisers to increase their reach and conversions.
Spotify’s consumers are highly engaged, as they are actively listening to their favorite music and podcasts. So reaching them in this period is a way to ensure that advertising dollars are being spent on a meaningful audience. Many of the capabilities and tools that Spotify Ads provides, along with its potential reach for advertisers. Make it a unique and attractive platform to expand brand awareness for a wide range of products and services.
Types Of Spotify Advertising:
1. Audio Ads
Audio ads are the most well-known form of Spotify ads. Non-premium users often complain about how many ads interrupt their music. However, from an advertising perspective, audio ads are a favorable outlet. Because users are unable to skip or fast-forward through them, guaranteeing that users are listening to audio ads no matter what.
Thanks to Spotify’s user insights, advertisers are able to target audiences based on several factors, allowing for more effective messaging to users. Spotify reports that showing ads that “match the moment make a bigger impact: 75% of Spotify listeners say they remember the ads that recognize their moment or setting.”
2. Video Ads
Another advertising opportunity can be tapped into through the video ads options, which are typically 15 or 30 seconds. These include video takeovers, which are made up of a companion banner and a customizable call-to-action. Takeovers are only shown when the user’s screen is in view. While they are actively looking to find new music or podcasts. Another form of video ad is sponsored sessions.
These sponsored sessions prompt 30 minutes of ad-free listening for users. Again, this type of video ad only runs when the user’s screen is in view. And users are unable to skip the ad.
3. Podcast Ads
Advertisers are offered two different ways to run ads on podcasts—through the Spotify Audience Network and through Title-by-title buying. The Spotify Audience network allows advertisers to pick their target audience and buy podcast ads to reach their target audience. Spotify has connections with various different podcast publishers and creators. Such as Megaphone and Anchor, which help to truly expand their audience network.
With these connections, advertisers are given the option to not only target active users on Spotify. But even users that are not listening on Spotify. Title-by-title buying of podcast ads is respective to Spotify or hosts across select Spotify original and exclusive podcasts. This is an option that includes extensive conversation and working with the Spotify team, as it does not appear to be the most accessible option.
Advantage Of Spotify Advertising:
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Spotify Has Access To A Large Audience
Based on a recent report, Spotify had increased its empire to 180 million active users per month by the end of 2018. Eighty-three million of those were premium subscribers who paid to avoid ads. This means that almost 100 million users enjoy the platform for free and listen to the advertising.
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Non-Paying Members Must Listen To Audio Advertising
Spotify users who access the streaming platform for free will have to listen to audio ads between their favorite songs and podcast episodes. There is no way around it – no skipping or fast-forwarding. This is a great advantage for advertisers, especially when other mobile apps or websites allow users to scroll past your ads or hit the “Skip Ad” button after five seconds.
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Spotify Allows Multitasking
Spotify users can simultaneously use other apps or browse through the web without having to stop the music. While Spotify members enjoy reading the news or catching up on Instagram, the app will keep playing music — and so will your audio ads.
This is an important feature, considering that other apps like YouTube will pause when users move away from the app. YouTube may be the most popular option in the world when it comes to streaming music, but this is a big disadvantage.
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Spotify Users Spend Long Hours On The Platform
Because of its multitasking capability, Spotify users spend an average of 25 hours per month listening to Spotify’s content, making the app one of the top 10 most popular apps in the world.
Disadvantages Of Spotify Advertising:
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Limited Geo-Targeting Capabilities
When it comes down to geo-targeting, Spotify might not be your best bet. The platform doesn’t offer hyperlocal targeting; instead, advertisers are limited to audiences grouped by country, state, region, or designated market area (DMA). Even though these targeting options might work for some campaigns, as a community bank with varied products, you might find some limitations and restrictions.
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Genre And Playlist Content Targeting Is Not Relevant To Banks
Spotify allows your message to reach people who are listening to music aligned with specific moods, music genres, or activities like a workout, partying, relaxing, and traveling. Some companies might find success by advertising their brands based on these parameters, but banks and financial services may not be a great fit.
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Conversions On Spotify Are Rare For The Financial Services Industry
Unless your bank has decided to run a broad branding campaign, you shouldn’t expect great success with conversions. Spotify users listen to this streaming content while driving, working out, cooking, showering you name it. It’s just not convenient for them to click on your ad, look into the details of your offer, or sign up for their new credit card.
Branding campaigns are the exception because you’re simply spreading awareness of your bank within the area and letting listeners know you’d like to take their banking experience to the next level. There is no action needed, and therefore, no immediate conversion is necessary.
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Budget Restrictions
Spotify requires a minimum ad spend of $250 but limits the maximum ad spend to $5,000. The lower end may be affordable as a test, but do you really want to sink thousands of dollars into a platform that may or may not benefit your bank?
Conclusion:
Spotify and other music streaming platforms are modern-day radios, with a little bit more balance and variety for the user. It offers a wide range of options for advertisers to customize ad campaigns and optimize their budget, along with several tools and tips for making Spotify ads. If you have the budget and resources to start advertising your product or service, it’s worth considering Spotify as a new way to build brand awareness and reach.
