Advertising on Spotify: using the audio revolution to your advantage
Culture Next*, Spotify’s annual analysis of how Millennials and Gen Z are shaping audio streaming and culture in general, talks about a Cultural Rebirth, and the key players in this renaissance are Listeners, Creators, and Advertisers.
Some interesting data emerging from this analysis:
- 69% of Millennials and 68% of Gen Z members in Italy believe that streaming platforms, including audio content platforms, have significantly shaped how they discover and connect with a broader culture
- 43% of millennials and 40% of Gen Z in Italy say they have become part of a global community thanks to music and podcasts
- 72% of Millennials and 63% of Gen Z in Italy agree on using audio content to reduce stress levels
- 36% of young people in Italy trust podcasts more than traditional media
Spotify also suggests to brands that giving space for diversity, being as present as their users are comfortable with, and reminding them that they are not only consumers but also creators are just some of the communication strategies for connecting with younger people.
Why invest in Spotify Advertising?
Over 300 million users have a Spotify account, some in the free version (where ads appear every 15 minutes) and some in the paid version, where ads appear only during podcasts).
People listen to an average of 4 hours of audio content per day, compared to the average of 2 hours per day spent on social. Again taking millennials into analysis, Spotify estimates that 46 percent browse social media while listening to streaming music.
In a multichannel strategy then, the role of audio ads is critical as they are twice as likely to increase purchase intent as display ads and result in a 24 percent increase in ad recall, a study by Neilsen Media Lab shows.
How much does it cost to sponsor on Spotify?
The minimum cost for a campaign is 250€, which, when compared with the costs and performance of a radio station, is a cost that any reality can bear.
“Through Ad Studio even small and medium-sized realities can easily test a campaign on Spotify, measure its impact and exploit the power of audio,” stressed Alberto Mazzieri, Director of Sales at Spotify Italia.
SMEs, startups and even brands that have large media budgets at their disposal: if the message is engaging and well-constructed, intercepting the audience at a pleasant moment, through sponsorship on Spotify, can be extremely strategic.
Campaigns on Spotify: formats and features
Spotify, the leader in on-demand streaming, provides advertisers with Ad Studio, the self platform that, thanks to Streaming Intelligence, allows brands to understand listeners’ moods, passions, habits and musical tastes, using emotional branding techniques, i.e., striking through emotions at the right time.
Audio, video takeover, display and sponsored playlist campaigns can be created with Ad Studio.
- Audio: these are 15- to 30-second campaigns that are broadcast between songs, when the listener is immersed in the music, with a specific CTA, link and image to support it.
- Video Takeover: these are displayed with the screen active, that is, while the user is browsing and browsing the catalog to choose the playlist or podcast to be streamed. CTAs and links can also be inserted for this format.
- Display: clickable ads with website destination and available in Overlay, Homepage Takeover or Leaderboard formats.
- Sponsored Playlists: this is the ability for brands to place their brand within Spotify-owned playlists, for a set period, leveraging streaming intelligence and high number of listens.
Through the platform it is possible to record the commercial for free, choosing speaker and music. The choice among different backgrounds is wide, as is the internal selection of voice profiles, diversified by age and gender.
And the results? Measurable, of course! The platform provides many metrics for assessing the impact of the ads, including accurate data on the percentage of audio listening.
Read also: Google Analytics 4: what it is and how it works
Spotify Sponsorship: getting heard by your target audience
Spotify Advertising allows you to connect with your target audience through affinity, speaking (and listening to) the same language, or through remote connections.
Indeed, it is possible to create audio spots directly on the platform with the music style of the audience of interest and appear just as they listen to their favorite artist, making the ad enjoyable and engaging, without making it perceived as an interruption.
Not surprisingly, many ads begin precisely with “Hey, so sorry for the interruption.”
By creating affinity, it is possible to reach even small audience niches, putting the classic socio-demographic targeting method, however available in the platform, on the back burner.
At a time in history when social connections have shrunk, connected devices are helping people feel more and better connected, and this applies to brands as well. The increase in listening via home devices is an opportunity for brands to intercept, through Spotify Advertising, their audience even at home, with the possibility to choose even at what precise moment: while they are working out, while they are making dinner or while they are cleaning.
The conclusions about Spotify Ads
Spotify is the most popular and widely used music platform globally. Following best practices for ad creation, the potential for audio products is enormous.
But not only that… In a world moving toward the metaverse and where reality is increasingly virtual, brands need to create connections, to discover their human side, and what is more real and human than voice?
