Should you consider advertising on Spotify in 2020?

Recently, Spotify has sent out an Agency Media Kit, highlighting all the features & reasons for brands to advertise on Spotify in 2020. We thought this would be an ideal time for us to cover what Spotify Ads offers as well as how our own Spotify Ad campaigns have fared and the learnings we’ve picked up along the way.

The company’s mission is summarised as:

At Spotify, our mission is to unlock the potential of human creativity — by giving a million creative artists the opportunity to live off their art and billions of fans the opportunity to enjoy and be inspired by it. 

Spotify Ad Studio helps make music accessible around the world through our ad-supported experience. This gives businesses a tremendous opportunity to be heard by audiences that matter most where they’re already listening. 

Spotify is clearly positioning themselves similar to other ad platforms, placing advertisers ‘there’ at the opportune moment for their target audience to engage with their adverts. Similar to other platforms such as Facebook, they pride themselves on having a wide, diverse range of audiences based on listening habits, musical tastes and now with podcasts, there is even more insight into what subjects people are into.

Working in Digital Marketing we’ve seen the mediums we use for our advertising evolve over the years; from merely text-based search ads to image banners and later animation & video ads but audio advertising is often overlooked.  It may be because traditionally the closest equivalent – radio – has been quite expensive and lacking in tracking/attributing sales or leads. But Spotify Ads addresses quite a few of these previous roadblocks from adding in audio ads to a business’ marketing mix.

 

Reasons Why Brands Should Consider Spotify Ads

  • 248M monthly active users, of those 141M users receive ads.
  • 51% of Spotify’s audience comes from mobile devices, meaning that listeners can be at home, work, on the go, spot etc. Giving more opportunity to reach your target audience when it matters most.
  • 7/10 Spotify users have a positive view of businesses who advertise on Spotify. Users say that it makes brands seem relevant, young, genuine, smart, trustworthy, innovative & reliable.
  • There are plenty of times where we aren’t in front of our screens, especially when listening to music. So Spotify can get your message across in these key times where someone isn’t in front of a device or computer.
  • With a strong knowledge of your target audience/demographic, you can very easily narrow in on highly relevant audiences on Spotify.

Spotify Ads Audience Targeting

Despite being a relatively new advertising platform, Spotify Ads has an interesting approach when it comes to audience targeting. They don’t just provide interests to target, they base their interests on real-time context categories that allow you to target people when they are doing certain activities that could match to your own brand’s audience. 

A few examples of this are people who are commuting/listening in a car – you could target people who fall into these categories for professional services or motoring clients.  Or companies selling technology products can target those interested in technology podcasts or users who are streaming via emerging platforms such as Smart TVs, games consoles or Smart Speakers.  

If you have a strong understanding of your target audience or defined customer personas then Spotify Ads could be a logical next step for leveraging those audiences further and making full use of Spotify’s unique reach.

There are still common demographic and location targeting with Spotify now able to target down to the postcode to serve a highly relevant ad within your target area. From personal experience I’ve heard a number of brands ads using localised ads, mentioning the city I’m in – straight away that grabs attention more than a generic ad message and is likely to garner more engagement much like localised PPC ads have performed similarly well in the past.

Spotify Ads Reporting

Unfortunately, in-platform reporting is one area where I feel Spotify is a bit lacking. The platform is still fairly new and it will surely evolve and become more detailed as it gathers strength but when compared to say Facebook or Google Ads the level of reporting & insight that can be gained from the platform alone is quite lacking.

For instance, there is no measurement or setup for conversion tracking which is unfortunate in a time where every marketing budget is scrutinised & must provide some sort of return on investment for clients.  Spotify frames their platform as being measured more on reach & ad frequency than clicks and conversions, but it would still be nice to have this functionality since many competing ad platforms have this.

However, there are certainly ways around the reporting and tracking issues, you can add in UTM tracking tags on to URLs of your ads which will make traffic from Spotify traceable in Google Analytics or any other CRM/Lead Management systems.

Spotify Ads Case Studies

At Clicky we’ve recently worked on two campaigns where Spotify was seen as an ideal platform to spread two very different messages to great effect.  Spotify’s audience targeting & huge reach were ideal for our clients and helped to build awareness of two differing marketing goals.

Firstly our work with Heathrow Airport where we were supporting by researching, planning and executing a great audio advertising campaign through Spotify. The ultimate aim of the campaign was to encourage the general public (specifically those aged between 18-30 based in London) to get involved and have their say on the future of Heathrow as it seeks expansion. 

The campaign urged our audience to visit and complete a survey on the planned expansion, the ad received 869,887 impressions over a month duration. 

 

The other recent Spotify Ads campaign we ran was for Animal Trust Vets. Animal Trust is a rapidly expanding Not-for-profit Veterinarian with branches located throughout the North of England.  To support this growth we wanted to advertise in their locations about why pet owners should choose Animal Trust and Spotify was ideal for this. 

With an audio ad that was created & recorded to reflect the personal, emotional nature of the subject matter we were able to speak to our target audience with the exact right message & tone. The reach of the campaign was much higher than other campaigns on other platforms & will have provided increased awareness & brand recognition in support of the rest of their marketing activities across PPC & Paid Social too.

 Verdict

So Spotify Ads is certainly a platform that business owners should consider in 2020, with a massive user base the app is now a key part of many people’s lives. With many different situations & moments when people are listening to Spotify, it opens the door to real-time context-based advertising, allowing advertisers & brands to reach their target audience when it matters the most. 

If you are interested in Spotify Ads campaigns or would like to discuss your own business and how Spotify could work for you then feel free to get in touch with us and one of our team will be happy to help & speak to you about including Spotify in your own marketing mix.

Written by Andy Adams

PPC Specialist