This week we hosted a Spotify lunch and learn session for our Melbourne clients, featuring a great presentation from David Raitt, Spotify’s Sales for Australia & New Zealand.
The focus of the session was around how brands can creatively use Spotify as an advertising channel within their marketing mix. With the average user spending 109 minutes every day on Spotify, David demonstrated just how powerful partnering with Spotify can be.
Spotify Users & Ad Formats
People in 58 countries around the world are streaming Spotify on desktop, tablet and mobile, In Australia, around 30% of their users are premium subscribers ($11.99 monthly) and the other 70% use the free version, which is supported by ads. They already have several hundred thousand registered users in Australia, which makes Spotify ads an effective platform to amplify your message to customers anywhere they go.
Since last year, the share of users listening to Spotify on mobile has tripled. More people are taking Spotify more places, which makes targeting them even easier.
Spotify offers a range of different ad formats, including audio ads, interactive display ads, homepage takeovers, branded playlists and advertiser pages.
Engaging Through Audio
Spotify Audio Ads play your audio commercial between songs to Spotify’s free listeners – and they can’t be skipped. They are an easy solution for advertisers and brands to reach a highly engaged audience.
With 80% of Spotify users using social networks daily, Spotify ads allow you to build your brand image, be informative and create strong Call to Actions to drive sales.
More ways to creatively partner with Spotify
Two great case studies that were presented at our session were from Clipper Tea and Levi’s. While the implementation is vastly different, both brands have used Spotify to reach their target audience and to maximise their ROI.
David played us a really clever interactive ad by Clipper Tea that targeted their audience and encouraged listeners to try their out products for free. Clipper Tea targeted classical music listeners and acknowledged the musical context of their users. The clever ad grabs your attention but doesn’t come across as too invasive or interrupting.
Another interesting case study was from Levi’s. In 2013 Levi’s partnered with Spotify and Clash Magazine to showcase a pioneering music event created for, and made by, consumers. Fans of the Levi’s brand were encouraged to engage on the site and create “a unique gig” which allowed them to choose their own set list and supporting acts for the show. The campaign was successful because it enabled people to interact with Levis while still promoting Levi’s brand messaging. Overall this campaign resulted in an amazing amount of positive press for Levi’s.
Is it time to change your tune?
With 42% of users listening to Spotify while at home, 23% listening while at work, 22% listening while working out, 17% listening in the car and 14% listening on public transport, ads can all be targeted to specific users based on demographics, location, music genre and more.
Brands such as McDonalds, Qantas, Fiat, Herbal Essence, Coopers, Bacardi and Telecom have all changed their tune, jumped on board and mixed up their marketing with various Spotify campaigns.
Is Spotify worth investing in?
As with any platform, this depends on your brand and what you are trying to achieve. Above all, Spotify is providing great opportunities for brands here in Australia and I’m looking forward to seeing what they come up with next.
With +40 million active users globally, over 1.5 billion playlists and the ability to listen for free from anywhere, the Spotify platform is certainly an interesting and unique way to reach your target audience and tailor ads specifically to them.
What are your thoughts on the social platform? Would you or your brand consider using Spotify in to reach your audience? Are you are already using Spotify in you marketing mix? Either way we would love to know what you think!
If you’d like to ensure you are kept ahead of the pack when it comes to Spotify advertising or would like to come along to one of our training sessions in the future please get in touch.