But what is the offer that the most famous music streaming platform in the world proposes to advertisers? And what are the costs of paid advertising on Spotify ? Let’s find out in this guide.
Spotify Numbers Marketing on Spotify
In the first quarter of 2020, the music streaming platform saw a boom in subscribers, reaching 286 million monthly active users , including 130 million premium users.
Compared to the data of the last quarter of 2019. Marketing on Spotify there was therefore a further increase: as of December 31, 2019, monthly active users were 271 million, and premium users were 124 million. Even from a financial point of view, the results were better than analysts’ forecasts, with revenues of 1.848 billion euros compared to the 1.71 billion expected.
Spotify Advertising: What are the advertising formats?
Spotify currently offers four types of advertising formats to brands and advertisers:
- Audio : This is an advertisement that plays between songs during active listening sessions; the ads are accompanied by a display banner in the cover art area, which the user can click to land on a specific landing page
- Video : this type of format offers two options. In “ sponsored sessions ” the brand offers “freemium” users 30 minutes of listening without advertising at the end of watching the video ad; the second option is the “ video takeover ”, which is instead positioned between listening to one song and another within the advertising breaks, like an audio ad.
- Sponsorship : Brands can associate their name with Spotify’s most successful or owned playlists and therefore exclusively benefit from advertising space within the playlist itself.
How Spotify Ad Studio Works
Spotify released Spotify Ad Studio in April 2018, first in beta testing in the US, then in Canada and the UK.
Spotify Ad Studio is a self-service platform that allows brands, even small ones, to independently manage advertising campaigns , with flexible budgets and a highly targeted audience.
At the core of Spotify Ad Studio is “ Streaming Intelligence . Marketing on Spotify or the deep understanding that Spotify has of its users: thanks to the analysis of listening data, the platform comes to understand the moods, the contexts in which they listen to music, and the musical preferences of its audience. Thanks to Spotify Ad Studio, therefore, it is possible to target the audience not only based on gender, age, and geographic location, but also based on musical genres listened to and playlists.