Should My Organization Advertise On Spotify?

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Ali Blount AUTHOR: Ali Blount
Dec 06, 2023
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Looking to turn up the volume on your digital strategy? Spotify campaigns can be a great way to get in front of potential ticket buyers and ensure that your message resonates everywhere—even in the spaces between their favorite tunes.

Audiences around the world are consuming music and podcasts at impressive rates, and the majority of that listening happens on streaming services—specifically Spotify if you’re in the U.S. The platform boasts almost 94 million users, half of whom listen with ads. These listeners are also on the younger side; around 29% of Spotify users are aged 25 to 34.

Here’s what you need to know to tap into these promising audiences, boost your reach, and drive conversions.


HOW DOES SPOTIFY FIT INTO MY ADVERTISING MIX?

The streaming giant is a great way to replace traditional radio with targeted listeners. Around 60% of users say they pay more attention to ads on Spotify than traditional radio. One in five participants of a recent study reported looking up a brand or product online after hearing about it on Spotify. And 30% of study participants said they are likely to purchase a product or service that they heard about on Spotify.

That’s because Spotify isn’t just background noise—listeners are directly and deeply engaging with the service. When someone chooses to listen to music or a podcast on Spotify, they’re actively opting out of watching something on a screen.

If an ad is closely tied to what a user is listening to (like targeting Bob Dylan listeners for a production of Girl from the North Country, which features the songs of Bob Dylan), all the better—this relevance makes the ad even more meaningful and memorable. In fact, Spotify found that audio ads generated 24% higher recall than display ads and were twice as likely to lift purchase intent.


WHAT MAKES A GREAT CANDIDATE FOR A CAMPAIGN?

Not all programming is necessarily a strong match for a Spotify campaign, but when it is, this is an effective platform to reach potential audiences where we know they’re listening.

If there’s a genre or artist that directly relates to your programming, Spotify can be a powerful way to reach new audiences. Spotify also might be for you if you have strong visual assets (more on this later!) or the ability to craft a powerful audio ad.

Keep in mind that Spotify does have a budget minimum based on the number of ad groups you target: $250 each. This number can quickly balloon if you’re using multiple interests or genres, as well as different ad group objectives (like clicks or impressions). Reporting is also limited—tracking options on Spotify are not nearly as robust as on other digital platforms, since you can’t measure conversions.


WHAT AD FORMAT WORKS BEST?

If you think Spotify is a good match for you, here are a few ad format options that are best suited for our sector:

Audio ads serve between songs, podcasts, and playlists, with a companion image.
Video ads only serve when the Spotify app is in view.

Audio ads are the most popular offering, although video is an excellent option if your programming has a strong visual component. According to Spotify, combining audio and video ads in a campaign drives 66% more incremental sales compared to audio only, as well as 27% higher purchase intent.

In Action: We partnered with the Kennedy Center to run both audio and video ads for their recent production of Moulin Rouge! The Musical. The show features striking imagery, as well as clear music tie-ins, so we recommended using both Spotify placements. While the two ad types had similar spends and reach, the video ads drove a much higher click-through rate (CTR), as well as a lower cost per click (CPC).

The Results:
23-11 Spotify Streaming-01


HOW CAN I MAXIMIZE CAMPAIGN PERFORMANCE?

Experimenting with Spotify’s campaign objectives can help yield stronger results as we test what’s most effective for each organization’s audience.

In Action: We ran a Spotify campaign for the Huntington Theatre Company’s production of Fat Ham that focused on driving impressions, and then we used a clicks objective for their production of The Band’s Visit.

The Results:
23-11 Spotify Streaming-updated chart


AMPLIFYING YOUR ORGANIZATION’S PRESENCE

Spotify has become woven into the fabric of so many of our lives, and its user base is only growing. If there’s a natural music or podcast fit with your programming, and you have a supplemental budget available, then a Spotify campaign can provide an additional way to reach new audiences.


READY TO PRESS PLAY ON SPOTIFY CAMPAIGNS?

Let’s talk about crafting streaming ads that boost reach and introduce new audiences to your artform.