The way you listen to music affects whether or not you’ll be exposed to advertising while you listen. It’s a pretty good pay off. Your (long ago charity shopped) CD collection was ad free. But no matter how many rooms it took up, it paled in comparison with what is available digitally, via cloud and streaming based services. If you use Spotify you are likely one of the 45 million users who use the free service (as opposed to the 15 million who pay for the premium ad free subscription), have weighed up the options and accepted advertising as a fair deal for free access to more music than you are ever going to get around to listening to.

 

Spotify’s multiple subscription choices are key to the whole operation. If we don’t want to pay, we get free music, brands get access to us and in the process access to a whole world of data. Data that allows them to ensure their ads get heard (and seen) by the right people and, crucially, people in the right frame of mind. Meanwhile Spotify uses the ads to encourage people to take out the premium subscription choice.

 

Users are happy with the service, and for Spotify at least, the options work. Their ad mobile ad revenue saw a 380% increase year-on-year between 2014 and 2015. But does advertising on Spotify work for brands?

 

Data

 

We hinted at this above and it’s a huge sell. Spotify has all of the advantages that radio has in terms of being able to provide demographics according to the music being listened to, but it goes beyond what traditional radio can offer, offering specific sign-up data (akin to a social media site), detailed listening choice information, geographic location and social activity. Further, the playlists that users choose to listen to provide information about the state of mind and activity of the user. Workout playlists, for instance, might be of interest to sportswear brands or playlists targeted at commuters might be of interest to coffee shop chains. Specific activities and moods provide specific opportunities for brands.

 

Premium

 

18 – 34 year olds can’t get enough of Spotify. While there is no shortage of competition (iTunes + Beats 1, Pandora, Bandcamp, Deezer etcetc) for the moment Spotify is still one of the first places brands should think of if they want to reach that premium, multiplatform demographic. And we can call that demographic premium, because according to research done by Comscore, people that use streaming services are over 2x as likely to be willing to pay more for brands.

 

Usage

 

If you do use Spotify for free, the chances are you use it pretty heavily. Spotify’s own data suggests that users listen to an average of 148 minutes a day, across the day and across formats.

 

Taking all of the above into consideration, we think Spotify is a highly useful format for campaigns that are looking to reach millenials. If you would like to know more, and whether it would be a suitable format for your organisation, just get in touch.