Everyone listens to music, and more and more people are doing so through Spotify. The service allows you to listen to music via mobile phones, computers, tablets, TVs, consoles or in your car.
Spotify – free and paid version
In a way, Spotify can be seen as two products. On the one hand you have the free Spotify product with ads, and on the other you have Spotify Premium. The most ardent Spotify users switch to Spotify Premium, which is ad-free. This service very much follows the classic freemium model.
Statistics: By the end of 2019, Spotify had become the most popular global audio streaming subscription service with 271 million users, including 124 million Premium subscribers, in 79 markets. They claim to be the music industry’s biggest revenue generator today.
Marketing on Spotify
Despite the limited marketing opportunities on Spotify Premium, a huge number of people are currently using the free version of the app. According to Spotify’s annual report for Q4 2019, Spotify has 271 million monthly users (MAUs). This is up from 207 million a year earlier. During 2019, the number of premium subscribers increased from 96 million to 124 million.
Spotify has recognised its marketing potential and now has a well-structured advertising market. With audio advertising on this service, we can get our message to the exact target group. Display advertising will make it easy to redirect users to The Record Man website and increase brand awareness.
Statistics: Another way to look at the importance of advertising on Spotify is to look at their financial figures for Q4 2019. Although the majority of their revenue comes from Premium subscriptions (€1638m), the €217m received from Spotify ads is still a sizable amount. Perhaps more importantly, ad revenue jumped 27% from the previous quarter, while premium subscription revenue jumped 5%.