Things took an interesting turn at Spotify, the music streaming and media platform, this week as they launched a new video advertising option.
Spotify is a pretty big deal in the music app world – with 130 million paying subscribers now signed up, its quarter one results for 2020 boasted a year-on-year increase of around a third (Warc 2020).
Their strong results are further boosted by a high uptake of the free subscription option, through which advertisers can target highly engaged listeners – a media planner’s dream!
This month saw Spotify increase their advertising options further, with the release of self-serve video advertising. But when advertisers can place video adverts anywhere, why choose Spotify?
One of the key benefits of video on Spotify is that on other platforms, such as Facebook or Instagram, video ads are often viewed while muted. On Spotify, the whole point of the audio app is that listeners are there for the sound. This offers a valuable – and exciting – opportunity for advertising messages to be seen and heard.
The theory of this idea is interesting and we’ll be watching carefully to see if it takes off. It will require a behaviour change from the user to switch from just audio to multi-media. We’re presuming that a giant like Spotify has based this innovation on user insights and demand – they’ll be giving YouTube a run for their money.
From a marketing perspective, if it works, we could be onto a winner: in a joint study with Nielsen Brand Effect, Spotify tested running both video ads and audio ads together. The study found that the combination of audio and video produces higher brand recall results than running video ads alone, including a 1.9x increase in ad recall and a 2.2x increase in brand awareness when compared to video ads alone. Now, we’re all ears!
As the first agency in Northern Ireland to sign up to Spotify Ad Studio, we have been using the platform for over two years to serve advertising messages to UK and Ireland audiences. The costs associated with “airtime” on Spotify are a fraction of the price of radio and it is possible to geo-target to specific towns and cities, as well as serving adverts based on listeners’ age, gender and music consumption habits. So we’re very definitely watching (and listening to) this space!
If you’re interested in adding Spotify to your advertising mix, get in touch with email@example.com to find out more.