Spotify is based on a”freemium” model — where all users can have free, unlimited access supported by 15 and 30-second ad breaks. Users can opt to pay for a premium account for an ad-free listening experience. The largest number of Spotify’s listeners choose the ad-supported version and with access to over 101 million ad-supported users in 65 markets around the world, it’s become an increasingly competitive method of reaching music consumers and converting passive listeners to active fans.
There are three main paid advertisement types with which marketers can experiment when advertising on Spotify:
- Audio -– Plays between songs during active listening sessions. Accompanied by a clickable display that can take users to a specific URL or landing page.
- Video -– Sponsored sessions, video takeovers or branded moments video advertising that rewards viewers with 30 minutes of uninterrupted music after watching.
- Display -– Homepage banners, homepage takeovers, mobile and desktop overlays.
Spotify Ads feature a variety of different ad units:
- Audio Everywhere – short audio ads served between songs with clickable display content
- Sponsored Session Video – your video ad unlocks 30 minutes of ad-free listening if a user opts to watch the full video
- Video Takeover – your video message served in between songs
- Overlay – simple display ads targeted to desktop or mobile
- Homepage Takeover – showcase your brand message on the front of Spotify’s Browse page for 24 hours
- Sponsored Playlist – customized playlist sponsored by your brand with clickable display ad
Spotify Ad Studio makes it simple for anyone to set up, track, manage and analyze audio ads.
Some of the other things that you can do with Spotify Ad Studio include:
- Create and record your own audio ad
- Reach free-tier Spotify users
- Retarget people who have engaged with your previous ads
- Create successive ads to share an extended story
- Gauge impressions based on targeting and spend
- Track your campaign, including clicks, impressions and cost
You can target your audience on Spotify based on…
- Who They Are (Age, Demographics, Gender)
- Where They Are (City & Geography)
- How They Listen (Listening behavior / Streaming Habits [Real-time Playlist Targeting & Historical Playlist Targeting], Devices [Mobile / Desktop])
- What They Listen To (Music taste [Real-Time Genre, Sub-Genre Targeting])
Genre targeting lets you deliver your ad after a user has listened to a specific type of music. This is helpful if you know that the majority of your target audience listens to reggaeton, for example.
Playlist targeting allows you to deliver your message to people who gravitate towards tracks associated with certain activities or moods.
What do Spotify Ads cost?
Prices depend on the specific campaign, targeting and ad-formats implemented. Spotify’s website states that the minimum cost is $250 USD to launch any type of ad, regardless of territory.
What about Spotify’s Best Practices?
- Use multiple Spotify ad formats per campaign to target an audience. A mixture of audio and display has yielded the best results. (According to Spotify, there has been a 24% lift increase in ad recall for audio formats)
- Cross-device targeting to hit the audience both at home on desktop and out-of-home on mobile
- Targeting playlists and genres/sub-genres that are in-sync with your brand and message
- Campaigns should click-through to a playlist or album, not an individual artist track
For Spotify Ads’ success stories, you can check out their webpage.
