Spotify – Why it Makes Sense for Brands

Tuesday, September 27, 2011
Bryan Cox

The newest music streaming service to hit the scene is gaining users across the globe, causing advertisers and marketers to take notice. Boasting over 8 million engaged users globally, Spotify is finding new ways to connect customers and brands.

Why Spotify makes sense for brands:

  • Users hear audio ads every three songs, connecting advertising with engaged consumers
  • Display ads are presented with audio and provide a visual element to enhance brand connection
  • One brand is shown at a time. In a recent ClickZ interview Spotify Chief Advertising Officer, Jevery Levit, explained: “What’s interesting about the display product is that…it’s not a cluttered environment. We are showing one ad from one brand. And the ads only surface when you are engaging in the client. So it’s not showing when your screen is open for hours, it’s only [an impression] when you are actively engaging in the client.”
  • Connects desktop, mobile and social media activity
  • Global reach: Spotify has quickly expanded into many European countries and most recently into the United States. However, unlike their competitor Rdio there are no immediate plans to enter the Canadian market.

Partnering with Facebook

This past week, Spotify announced a partnership with Facebook Music. While they are not the only streaming music provider, they boast different features that have set them apart from competition.

The Facebook/Spotify partnership has not come without some resistance from users. It is now mandatory that new subscribers sign up through an active Facebook account. This is a strategy that comes with great risk and is already alienating those that wish to retain a sense of privacy while still enjoying the music service. It is easy for Spotify to justify the move; Facebook is the largest social media site and could open the door to millions of users and advertisers across the world. Brands such as Coca – Cola and Reebok aren’t scared away- both have recently signed on as Spotify advertisers.

While the effects of brand engagement in the streaming music world are still relatively unproven, companies large, small, national and local are getting into the game.

If you’d like to find out about more ways you can shape your strategy, contact us today!