All About Spotify's New Self-Serve Ad Platform

Matthew Smokowski

Lead PPC Strategist

Spotify is a music streaming service with millions of users who have the option to listen for free with commercials or without commercials for a monthly subscription fee. In June, the music service hit 140 million users, with about 50 million of these users paying for an ad-free experience. With so many people using Spotify, more advertising opportunities are opening up. The latest is Spotify’s new self-serve ad platform called Ad Studio.

What is Spotify Ad Studio?

These days, getting your brand noticed on as many channels as possible is crucial to brand stability. Spotify is a great platform for driving brand awareness, especially with it’s new targeting options and budget plans. With millions of users to reach, you are guaranteed to connect with some of your audience.

At this time, Spotify Ad Studio is in beta for users in the United States. To use the platform, simply upload a script and select a background with music. You can target particular listeners, set your campaign budget and track results in real time. If you already have an ad you want to upload, that’s fine too. The targeting options work in the same way, with options to target according to music preference, location, gender, age and activity.

Let’s learn more about Spotify’s new self-serve ad platform and how it can benefit your brand.

Who is Ad Studio Geared To?

According to Spotify’s blog, Ad Studio makes it easy for marketers to reach the right people in the right moment. It’s expected that small-and-midsized businesses will benefit most from the advertising platform, though all businesses have something to gain. Advertisers can set their budget to what they are comfortable with, starting at a $250 minimum.

To ensure that their budget goes far, SMBs have many targeting options, whereas traditional radio advertising has few. This ensures that the audio ads make it to the right listeners at the right time. Not only can advertisers manage their campaigns, but also track progress in real time. Based on this data, advertisers can build personalized relationships with customers.

How Does the Ad Platform Work?

To create an audio ad, all you need to do is share a script and select a background track. Spotify Ad Studio will take care of the rest by creating a fully produced audio ad. Once you review and approve the ad, you can upload it in a single click while choosing the appropriate targeting options.

You also have the option to show the ad on desktop, mobile or both. Set the budget and timeline, just as you would with a social media ad. You can be competitive and push your ad out over one or two days, or you can spread it out over several days. As your audience responds, you can track and analyze the data.

If you already have an ad you want to share, Ad Studio lets you upload it to the platform where you can pick your audience and customize your campaign. Either method you use is easy, though it’s expected that more advertisers will let Spotify create a custom ad for them.

What are the Benefits to Audio Ads?

Audio ads on music streaming services are different compared to traditional radio ads. You can reach a highly targeted audience based on age, gender, location, music taste and activity. You can choose the context that the person will be shown the ad (mobile, desktop or both). You can even track how listeners are responding to your ads.

Let’s explore a few more reasons why audio ads are excellent for brand exposure.

  • Reach a wide target audience. People love streaming their music. Spotify has reached 140 million users, which means you have a wide audience to advertise to. You can be as specific as you want.

  • More engagement opportunities. Unlike other forms of advertising where you only have seconds to grab a person’s attention, there are more opportunities for engagement with radio ads. On Spotify alone, people listen for an average of 2+ hours.

  • Increase brand awareness. Spotify shares a Nielsen study that shows there is a 24% lift in ad recall for audio ads compared to display ads. Whether your brand is small or young, it can greatly benefit from the added exposure.

  • Fast, simple ad creation. Creating an audio ad is amazingly fast and easy on Ad Studio. You can create any ad in under 10 minutes - Spotify will handle most of the details for you!

  • Up to 30 second ad spots. Ad spots on Ad Studio come in 15 and 30 second increments that are played in between songs. This is enough time to share a special message, offer a promotional code or introduce your brand.

  • Budget-friendly ad options. Ad Studio is free to use, so you can create beautiful advertisements with no investment. Minimum campaign budgets start at just $250, which is far cheaper than other radio advertisement opportunities that can cost thousands.

  • Connect in the right moment. A benefit to audio ads is that you already have the person’s attention. They’re listening on their own and must wait for the ad to be complete before they can hear another song. This is what allows brands to form deeper, more personalized relationships with their audience.

As of right now, you can visit Spotify’s Ad Studio and Join the Waitlist. You will be contacted when you are off the waitlist, and you can begin sharing an audio advertisement. Remember, the service is in beta only in the United States, so it may take some time before everything is up and running.

Here at SEMGeeks, we look forward to hearing more about how our clients plan to use Spotify Ad Studio and the results they see!

 

About the Author: Matthew Smokowski

Matt is a PPC Strategist for SEMGeeks. He has a background in English and Creative writing and experience managing PPC campaigns for popular local businesses. He excels at creating creative ad copy, landing page content, and progressive PPC strategy. Matt has become the resident Amazon and Instagram Marketing Expert.

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