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Spotify Ad Studio – everything about ads

Good to know: Spotify uses its own algorithms to select music and some ads, and makes suggestions for artists or songs depending on what genre you’re in the mood for. The possibilities offered by this algorithm are endless.


Why advertise on Spotify?

Like Facebook and Instagram, Spotify has an official advertising marketplace. This makes advertising on Spotify a simple process. In 2017, they opened Spotify Ad Studio to streamline the advertising process and provide a range of options for potential advertisers like The Record Man.

As most people are now used to the freemium model, users of the free version of Spotify are willing to listen to and watch ads while using the app. They accept the fact that they will hear ads as the “price” for streaming their favourite music for free. Those who hate ads are happy to pay for a premium subscription.


Who will ads on Spotify reach?

It can be said that music brings generations together. This statement applies best to Spotify. Unlike in the case of apps typical for Millenials, Spotify is used by a growing number of more mature people and the age distribution is more even than in the case of other services. However, young people still remain in the majority.

Spotify is mainly used by three groups of people. These are Millenials – the generation of people born between 1980 and 2000, fans of new technologies and mothers. So if The Record Man’s target audience is Millenials and women with children and people who follow new trends, then advertising on Spotify will be an opportunity to gain their interest. This means they will learn about our brand and benefit from what we have to offer them.


What types of ads are there?

Spotify allows you to reach your users through both audio and visual ads i.e. banners and video ads. Both of these types can be broadcast via phone, computer, tablet, Xbox and Playstation consoles and even car! Ads can be purchased directly in the Spotify Ad Studio or through programmatic technology, where you need to have an account on one of the leading platforms (marketing companies) for leasing advertising space on the internet.

Here’s what differentiates each ad:

  • Audio
    • Audio Everywhere – these are adverts targeted at people who are listening to music and performing a specific action in the process, such as using headphones on a tablet. The Audio Everywhere format is a standard 30 second commercial between songs. This ad also includes graphics and when a user clicks on it, they are taken to a URL such as https://www.therecordman.org. The ad will be seen and heard by those using smartphones, tablets and desktop computers.
  • Video
    • Video Takeover – This full-screen video ad is displayed during commercial breaks between songs. As many Spotify users are listening without looking at the player screen, the ad may not be as effective as with audio content. It can be targeted to devices such as mobile, tablet and desktop.
    • Sponsored Session – This is a form of advertising whereby a user, after watching a video advert, is given the opportunity to listen to 30 minutes of music without adverts (a demo version of Premium). This is an ad intended for people using mobile devices and tablets.
  • Display
    • Overlay – this full-screen ad for mobile devices, tablets and desktops, is displayed to the user when they open the app, for example when they return to Spotify after minimizing the app. It can be turned off, or you can wait for it to disappear on its own after 30 seconds. The advertiser chooses any CTA button, e.g. “Buy now”, “Visit site”, “Listen now” etc.
    • Homepage Takeover – This ad takes the form of a large banner placed on the homepage of the Spotify app and is displayed for 24 hours (which is how much ad space is purchased). This ad is for desktop devices only and displays without sound.
    • Leaderboard – this is also an ad for desktop devices, which is an image in the form of a small banner at the bottom of the screen. It displays for 30 seconds and has no sound.
  • Sponsored playlist
    • Sponsored playlist – this ad involves sponsoring playlists for the audience you would like to reach. This form is interesting because it evokes positive emotions in the user. E.g. running a shop with diet supplements, we can sponsor a playlist with energetic songs typical of those often heard at the gym.

Advantages of advertising on Spotify

The benefits of advertising on Spotify relate to several areas – namely the target audience, the form of advertising and measuring results.

Target audience: wherever there may be potential users of The Record Man, advertising campaigns will be effective. The condition is one. The campaign must be designed with the target group’s needs and activities in mind. If our potential customers use mainly mobile devices on a daily basis, then investing in Homepage Takeover advertising will not be effective, but Sponsored Session will be.

The expectations of Spotify users vary, which can be seen in their activity. Some are looking for new songs, others are focused on frequent playback of their favourite playlist, and still others only listen to songs at times that are important to them.

We can tailor your ad to your audience based on demographics, i.e. age and gender, language, as well as behaviour and interests.

Form of advertising: The target group is not everything, as targeting is done using information on playlists, preferred music genre, device type and location. In addition to being able to specify the target group and choose the type of ad (audio, video, display, playlist). The advertiser also decides on the time of the ad, e.g. at the time of greatest user activity.

Measuring results: We can measure and analyse the effectiveness of advertising quite easily. Spotify provides reports so you can see if you’re reaching the right people, how your ad influenced their behavior, and whether it generated the response you wanted.

Good to know: Of course, there are many, many more ways to target your audience and if you have a clear objective in mind, you’re sure to reach the right audience and showcase The Record Man service. Segmenting by music genre or mood (there is a possibility to choose the type of music) gives us an opportunity that Google or Facebook cannot give us. This gives us a kind of insight into the user’s psyche and thus opens up completely new areas for targeting our ads. Properly conducted campaign on Spotify can be a really effective way to promote the project.


How much does it cost to advertise on Spotify?

Spotify’s self-service advertising platform was in beta for a while, but is now officially available in selected regions. The minimum we need to spend on an advertising campaign is $250. Because Spotify ads, like their Facebook and Google counterparts, include per-display rates, our ads will vary in price each time, depending on the competition. However, we are likely to pay €0.015-0.025 for each ad display.

Good to know: There used to be a ‘big brands only application’ for Spotify advertising. Indeed, at one point the minimum ad price for a Spotify campaign was $250,000 and was only viable for companies with large budgets. However, this has changed over the past year, with the opening of Spotify’s self-service advertising platform Ad Studio.