Spotify: Why advertise on Spotify Ads?

Spotify, one of the largest audio streaming platforms, boasts 15.7 million users in France, with 60% of them being freemium users (source: Spotify's 1st quarter 2021 quarterly results report). The Spotify Ads platform presents a significant opportunity for advertisers aiming to connect with a vast audience.

This article delves into the realm of advertising on the Spotify Advertising platform. It explores what Spotify Ads is, its significance, and how to leverage its potential effectively.

Spotify is a dominant force in the audio streaming industry, holding an estimated market share of 30.5% as of May 2022, according to Midia Research. This equates to a substantial user base. Spotify offers various subscription models, including the premium (paid) and freemium (ad-supported) options. Given the high number of freemium users, Spotify Ads provides advertisers with access to a large and diverse audience. Advertisers can target users based on geographical location, interests, and age.

Spotify advertising allows brands to reach users at times when traditional media, such as radio and television, cannot. Users spend approximately 2.5 hours daily on Spotify, whether they are commuting, at work, or at home.

Advertising on Spotify offers several advantages for advertisers looking to reach a broad audience. With over 9 million freemium users, there is ample potential for targeting. Additionally, Spotify's First Party data collection enables precise targeting. Beyond demographic data like age, gender, and location, advertisers can target users based on musical preferences and podcast interests, allowing for tailored campaigns.

Spotify Ads offers engaging advertising formats, including audio and video options, to promote products, increase brand visibility, and encourage user actions. Advertisers can monitor campaign performance through key performance indicators (KPIs), such as distribution, reach, frequency, budget allocation, click volume, and click-through rate (CTR), enabling them to optimize campaigns effectively.

Now that we've explored the advantages of Spotify Ads, let's delve into how it works.

Objectives and Budgets

Start by defining specific campaign objectives, such as brand awareness or consideration, and set a campaign budget. Spotify Ads campaigns typically begin at a minimum of €250 per campaign, with an option to set a daily budget of at least €15, which can be adjusted based on campaign performance.

Targeting

After establishing objectives and budgets, define your target audience using Spotify Ads' targeting tools. These tools include demographic data, user behavior targeting based on platform activity, and context targeting based on device type and music genres.

Ad Formats

Once objectives, budgets, and target audiences are in place, create ads using Spotify Ads' various formats. Options include audio ads and video ads, with a free audio production service called Ad Studio for audio ads. Video ads are 15 to 30 seconds long and can include customizable call-to-action banners to boost engagement. Spotify Ads also offers display formats, such as interstitial, homepage takeover, banner, and sponsored playlists, providing diverse advertising opportunities.

The Spotify Ads platform offers a valuable opportunity to rapidly increase brand or product awareness in an era where audio streaming platforms are becoming increasingly integrated into users' daily lives.