When it comes to audio streaming services, Spotify rules the roost.
In a little over a decade since its 2008 launch, the music giant has gained a mind-boggling 188 million subscribers and 433 million monthly active users (MAUs). Of its MAUs, more than half of them (256 million) are ad-supported listeners.
For brands and marketers, Spotify Ads represents the single largest digital audio advertising platform. It’s become the ideal medium to reach your target audience at their desk, on the go, or wherever they may be.
But only if you leverage this channel properly.
To that end, here are some Spotify advertising tricks that every brand should learn and implement.
Explore the Spotify Advertising Model
Spotify uses a freemium model, granting users access in exchange for listening to 15 and 30-second ad breaks. These ads may play pre- or post-roll at various times throughout their music session.
For small brands and businesses, you can launch an individual ad using Spotify Ad Studio for as little as $250. In addition, you can gain access to a host of creative and productive tools to help you make high-quality ads.
For larger brands, the cost of a full-fledged advertising campaign comes in at a whopping $25,000. Despite that hefty upfront investment, Spotify analytics indicate that the vast majority of brands that participate enjoy significant returns on their ad spend (ROAS) and increasing purchase frequency of products:
- Spotify ads were 25% more effective at driving incremental sales per 1,000 impressions than the Nielsen benchmark.
- Campaigns drove a ROAS of $2.08 for every dollar spent.
- A 9% lift in incremental sales demonstrated the ability to drive more new households to make a purchase.
Regardless of your budget, spend the time familiarizing yourself with the Spotify Advertising platform so you can take full advantage of its capabilities.
Leverage All Ad Mediums
Spotify offers brands and small businesses several different ways to reach their audiences. Naturally, some ad units are limited to larger campaigns and budgets. However, you should at least be aware of your options, which include:
- Audio ads – The standard ad format and the most popular ad medium, audio ads are played between songs and display clickable content on mobile, tablet, desktop, web, and connected devices.
- Sponsored session video – If a user opts to play a sponsored video ad, they’ll unlock 30 minutes of ad-free listening.
- Video takeover – Video ads are only delivered when users are looking at their screen. For instance, they may receive the ad while browsing through music catalogs. This format ensures that users will hear and see your message.
- Overlay – These are clickable display ads that are delivered to users when they open up the Spotify app.
- Homepage takeover – Some brands choose to showcase their branded messaging on the top of the Spotify Desktop Homepage for a 24 window.
- Sponsored playlists – Rather than directly play an ad, an indirect option is to create a customized playlist sponsored by the brand, which includes a clickable display ad.
- Podcast – Brands can work with podcasters on the Spotify platform to read their ads during their show.
Use a Cross-Platform Approach
When it comes to user targeting, don’t focus on an “either/or” approach.
Even if your target user is more likely to use their phone than their desktop, Spotify data shows that households exposed to cross-platform campaigns—involving both mediums—drove a 39% higher contribution toward incremental sales.
The same ethos goes for ad targeting. It’s best to use a mixture of all three, as households that were sent both audio and display ads drove a 27% higher contribution to incremental sales.
Take Advantage of Podcast Ads
With Spotify, advertising on digital audio programs, such as podcasts, is an incredibly effective way to reach a captured audience.
According to Acast: “ROAS for the digital audio category is 4.0, which means that ad buyers get an average of four times the money back on every SEK invested.” Along those lines, digital audio had the highest ROAS compared to every other media channel studied, performing 60% better than average.
But why do podcast ads land better with listeners?
A few factors contribute to this phenomenon:
- Podcast listeners are active listeners, meaning they’re highly engaged in the program, whereas music listeners may just play music (and ads) in the background).
- Podcast hosts are influencers in their own right. They have established relationships with their loyal audience, who are more likely to trust their product endorsement.
- Listeners have become accustomed to podcast ad breaks. Some ads, sponsors, or brand phrases even become memes or in-jokes between the host and the podcast audience.
Sonic Branding with Semgeeks
The world of advertising is evolving. Thanks to the meteoric rise of Spotify, sonic advertising has become a must-have addition to any serious marketing campaign stack.
Spotify offers brands access to a massive, engaged audience, a robust advertising data analytics platform, and powerful ad-making tools. Those companies able to successfully leverage this to their advantage can expect significant returns on their ad spend.
Need help with that?
Semgeeks can help you craft a winning Spotify ad campaign. As a digital agency, we can design, implement, and manage a full-fledged Spotify campaign that gets heard and drives results that will make you want to break out in song and dance.
If you want to learn more about Spotify advertising, let’s talk.
Sources:
Spotify. About Spotify. https://newsroom.spotify.com/company-info/
Statista. Number Of Spotify Ad-Supported Monthly Active Users (Maus) Worldwide From 1st Quarter 2015 To 2nd Quarter 2022. https://www.statista.com/statistics/813787/spotify-ad-supported-monthly-active-users/
Spotify. How Spotify Drives Return on Ad Spend for CPG Campaigns. https://ads.spotify.com/en-US/news-and-insights/how-spotify-drives-return-on-ad-spend-for-cpg-campaigns/
Acast. Advertising in podcasts gives an average of four times the money back. https://www.acast.com/blog/advertiser-stories/advertising-in-podcasts-gives-an-average-of-four-times-the-money-back
