Thursday, October 02, 2014

Spotify Launches New Ad Formats for Free Users

This summer I worked for Spotify in B2B marketing. During my summer, I learned about Spotify's unique ad platform. Spotify does not currently leverage ad networks to sell their ads but rather relies on an in-house sales team. This is primarily because Spotify believes their ads have a unique value proposition.

All Spotify ads deliver brands "100%". This means that all of the ads are:

  • 100% Viewable- no ad falls below the fold or are displayed where they can't be seen
  • 100% Share of Voice- a brand's ads are never shown next to another brand's, ensuring the message is clear and not confused
  • 100% Premium- ads are only displayed when the user is engaged with the platform (either selecting or finding a new song)

  • This is different from most ad products which don't provide brands with a "100%" experience. Most other display or audio ads are shown when the user is not engaged and messaging can be muddled among other advertisements. Examples of these ads are:

    • When Pandora plays an ad after you have let a playlist run for 20-30 mins and you are in the next room or not even listening anymore
    • When your ad is displayed on the page below the fold, it is counted as an impression but you don't know if the user ever saw it
    • When your ad is shown on the page next to an ad for another brand (see below example)




    With "100%" ad products, Spotify enables brands to create more meaningful connections with users and hopefully see increased engagement.

    Additionally, Spotify recently announced the launch of two video ad products which will allow brands to reach free Spotify users. Video Takeover on desktop and Sponsored Sessions on mobile expand Spotify's ad product offerings beyond audio and basic display ads. Video Takeover will take over the Spotify desktop player and prevent a user from listening to additional music or making a song selection until the video ends. Sponsored Sessions will allow users to opt-into the 15 or 30 second video ad with the opportunity to get 30 minutes of ad free listening for viewing the video. Brands can even target and tailor their ads based on the user's daily engagement such as studying, partying, commuting and working out. These video ad units will expand Spotify's offerings and enable brands to engage further with Spotify users.

    Sources: Spotify for Brands launches new video ad products across mobile and desktop, spotify.com

    No comments: