Most of you use Spotify’s music streaming service to access songs, podcasts and videos, but have you ever wondered why commercial breaks keep popping up in between songs?
Imaged credited from AdvertiseMint
These commercial breaks are a type of advertisement format offered by Spotify.
Spotify has become a music steaming powerhouse in recent years. As of December 2018, it has driven 116 million ad-supported users and 96 million subscribers, with a total of 207 million active users.
In September 2017, the Swedish company has launched Ads Studio, the world’s first self-service advertising platform that make it easy for anyone to create and manage audio advertisements. It is available in the US,UK, Canada and Australia.
According to Neilson Media Lab, audio advertisements resulted in a 24% higher advertisement recall and are twice as likely to boost purchase intent than displayed advertisement.
This is why it is seen by many advertisers as a new and exciting way to break through the clutter in the world with countless feeds and endless scrolling.
Enough of the statistics, let’s take a look at the 4 effective ways Spotify Ad Studio has benefited advertisers.
1. As labels and concert promoters
Label companies and event organizers make use of the new platform as an unique opportunity to reach their audience at scale, promoting their events or new singles to fans worldwide. One good example is the Pabst Theater Group.
Pabst Theater produces over 650 concerts every year across four venues in Milwaukee. Thanks to audio’s intimate nature, it is able to deliver the concert details at the fastest speed and ensures the message gets heard by the audiences.
2. As a live event promoter
Ad Studio can be used in live event promotion such as the partnership with the M agent and Live Nation in Australia to draw attention and raise awareness of their events. They have taken advantage of the platform’s clutter-free, native environment and flexible budget options.
3. Provides a value for listening
Spotify provides a safe platform for campaigns such as “The Big Listen,” from Samaritans, a UK-based worldwide charity, for people under emotional stress to talk about anything. With their powerful message delivered through audio, ad studio demonstrated how listening to another person can be the first step to saving a life.
Samaritans of Limerick & Tipperary
4. Drive significant sales for Consumer-Packaged Goods (CPG).
CPG campaigns on Spotify drive results, giving marketers a strong return on their ads spend and increasing purchase frequency of CPG products in larger quantities. The 9% increase in sales encourages more new households to buy more frequently and spend larger amounts.
Conclusion
Spotify Ads Studio turns out to be successful, having made a profit of 123 million USD for the first time in the last quarter of 2018. These results prove that by pairing the emotional power of a streaming platform with engaging ads format, advertisers can reach their audience more efficiently than visual media.
For me, Ads Studio is easy-to-use and affordable for everyone who wants to advertise. If you’re an advertiser, how would you use Spotify Ads Studio? Share your thoughts with me now!(:
Mandy's Marketing life 