What is it?Spotify is an on-demand streamingmusic service offering digitallyrestricted streaming of selected musicfrom a range of major independentrecord labels.“Access is replacing ownership,like it or not.”Gerd Leonhard, author of The Future of Content
How it works There are three streaming services available; Free streaming, Unlimited Streaming and Premium. Access to millions Unlimited streaming Spotify on your Ofﬂine mode for No Advertisements of tracks of music mobile playlistsFREEUNLIMITEDPREMIUM
Functions FUNCTIONALITY DISCOVERY MOBILITY Access to millions Related artists Use anywhere of tracks Import local ﬁles Artist radio Mobile music Create custom playlists Bibliographies Ofﬂine mode
Why it worksStreaming music services negate both thecost and compatibility problems users havewith music downloads.“It’s all the music you can listento, served to you in real time andit’s FREE!– which is why Spotifyis the hottest thing goingright now.”Michael Miller author of The Ultimate DigitalMusic Guide: The Best Way to Store, Organize,and Play Digital Music
Why should you care?“Spotify’s launch in Australia has been themost successful launch globally to date.”Radinck van Vollenhoven, Senior Sales Manager, Spotify, Australia & New Zealand— Library of 16 million songs, with 10,000 new tracks added every day.— Estimated 10,000 new subscribers a month.— +2.5 million global users in the last month.— 20 million monthly active users (5M paying subscribers, 15M non-paying). Spotify— Estimated 700+ Playlists created every day. Music Ally Billboard
Spotify AdsThere are 8 different ad units on Spotify;Audio ads, Display ads, Billboard ads, MPUs,Homepage Takeovers, Branded Playlists,Lightbox and Advertiser Page.The units include spots of up to30 seconds of advertising.Marketers also have the opportunity to buildupon Spotify’s already established platformby developing branded apps.
Advertising on SpotifyThe best and worst thing about Spotify ads is that they’re unavoidable.Although you’re guaranteed eyes and ears,you’re still interrupting the listener’s experience.Ads on Spotify can either:1. Detract value from the listener’s experience _ +2. Add value to the listener’s experience.
Detracting value (interrupting) Spotify Ads are often confronting, invasive “I would rather listen to toothpaste ﬁghting and irrelevant. cavities” _ Abruptly interrupting “Obnoxiously long - and the content is odious” a user’s listening “It’s frustrating when the ads are completely experience with irrelevant to me” marketing jargon will “What is very annoying are ads that are not even only lead to negative close to the genre of music that I’m listening to. brand association When I’m playing a classic rock album, I get ads for a hip hop artist” and backlash. “...it’s the fact that they’re really compressed, loud If not done right, it’s a and interrupting my peace that I can’t cope with” lose-lose situation to both the listener and Spotify Community Forum the advertiser.
Adding value (engaging) Add to the listener’s user experience by “I wouldn’t hate Spotify ads so much if they integrating marketing weren’t so offbeat...literally. They’re so irrelevant messages into their to me and my music preferences” Spotify ecosystem. “If the ad actually matched the music I was + listening to, then I would be interested in Identify, adapt, sampling that product and even consider connect, co-create making a PURCHASE” and share musical “I don’t mind Spotify ads when they’re not interests. invading my musical space with random nonsense... Show me a brand with similar musical interests, and I’ll happily walk into their Leverage users’ musical shop to purchase their products” passion points and positive afﬁliation with Spotify Community Forum music to accentuate your brand’s message.
Spotify Ads on the engagement scale 1. AUDIO ADS 3. DISPLAY ADS 5. HOMEPAGE TAKEOVERS 7. ADVERTISER PAGE High impact, unavoidable Places leaderboard and High impact, unavoidable format; An ad-served microsite, seamlessly integrated format comprised of audio ad, skyscraper ads in the Spotify allows for effective redesign and into the Spotify player. The advertiser page can campaign cover art, and player, served when the user is brand-ownership of Spotify. contain practically any content youd display clickable scrolling text. actively interacting with Spotify. Its the ﬁrst thing a user sees on a webpage, including videos, clickable when they open Spotify. images, blogs, news, links, comments and more.INTERRUPTING ENGAGING 2. BILLBOARD ADS 4. MPU ADS 6. LIGHTBOX 8. BRANDED PLAYLISTS A format with huge standout; Standard online format for the An overlay window launched by Custom user-generated acts like a screensaver after a Spotify player homepage: the any Spotify ad format, hosting playlists with brand logo, few minutes of player inactivity. default start-up page for all content such as Flash video, custom text and optional users when they log in to Spotify. data capture, competitions, live link to your campaign. streaming or game demos.
Engaging - 4 key rules 1. IDENTIFY 3. CONNECT Identify your target market’s musical Build strong relationships with users interests and listening habits. by leveraging musical passion points. 2. ADAPT + 4. CO-CREATE Adapt the tone of your ad to the Foster branded communities bymusical context of the listener’s mood. encouraging and rewarding user participation.
Engaging To build a solid communication foundation on Spotify, you must ﬁrst + identify your audience’s listening behaviours. Get in tune with your target audience. Levi’s partnered with Spotify, The Clash and a series of emerging UK bands, to help promote an array of gigs at its ﬂagship store. Band fans were encouraged to visit theIDENTIFY Levi’s microsite to determine the set-list, cover tracks Tailor your Spotify and support acts for the gig.Identify your target communications according The unique musical partnerships and creative execution across Spotify successfully embraced Levi’s rugged, yetmarket’s musical interests to your target audience’s timeless brand appeal, making their brand more relatable music preferences. to a new generation of Spotify users.and listening habits.
Engaging Interrupting consumers while they’re listening to their favourite music will + result in negative brand association. Stop interrupting and start engaging. Clipper Tea created an interactive ad toADAPT induce trial. The ad targeted listeners whose musical interests lied with serene/classical music.Adapt the tone of your Clipper Tea consciously acknowledgedad to the musical Optimise genre targeting the musical context and made the to adapt the tone of your interruption as non-invasive as possible.context of the ad to a user’s mood.listener’s mood.
The emotional content ofEngaging music is highly subjective. A user’s playlist is often a personal reﬂection and expression of their identity. Let the user’s positive + afﬁliation with music accentuate your brand image. Spotify Apps enable marketers to create unique Through the FitList App, Reebok created a cross-platform connections controlled encounter that integrated theCONNECT with the user. consumer’s workout, favorite artists and the Reebok brand into a single integrated brand (Music + Lifestyle + Social) experience. The consumer’s positiveBuild strong associations with the artist, workout and overall experience added valuerelationships with users to the consumers experience. Create a consumerby leveraging musical self-provisioning app topassion points. enhance personal afﬁliation with the brand.
Engaging Chances are people in a brand’s target market have + similar tastes in music. Encourage listeners to build playlists In order to connect with a young target market, Skoda around your brand. developed The Family Composer. The campaign acted as aCO-CREATE musical dating service, matching Spotify users with similar music tastes. User generated playlists encouraged young Spotiﬁers to share their favourite tracks with oneFoster brand Build a playlist to facilitate a another, and with Skoda. The fun and uniqueness of the experience sparked an online Skoda community, makingcommunities by mood in-line with your brand. the brand identiﬁable with young demographic. This will engage users with aencouraging and similar taste in music to bandrewarding user together over your brand.participation.
SummaryIt’s time to stop interrupting and start engaging. — Estimated 10,000 new subscribers a month. — Over different 8 advertising options + App opportunities. — Guaranteed eyes and ears, but theres a brand risk if you get it wrong. — Our advice....follow the 4 key engagement rules.
Next Steps Identify: Identify your target market’s musical interests and listening habits. Adapt: Adapt the tone of your ad to the musical context of the listener’s mood. Connect: Build strong relationships with users by leveraging their musical passion points. Co-Create: Foster brand communities by encouraging and rewarding user participation.
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