Spotify to Launch Two New Ad Offerings

Spotify to Launch Two New Ad Offerings
SHARE
THIS



Music streaming service Spotify is launching two new offerings for advertisers.

Spotify for Brands – Spotify’s marketing platform that connects uses of the music streaming service with brands – has unveiled ‘video takeover’ on desktop and ‘sponsored sessions’ on mobile.

The two new products launch worldwide to Spotify’s 30 million plus free user base from early 2015. Global launch partners include Coca-Cola, Ford, McDonald’s and NBC Universal. Pictures.

Jeff Levick, Spotify’s chief business officer, told B&T: “It’s the largest new ad related launch since Spotify was founded more than seven years ago.”

Levick says there has been interest from local advertisers in the offerings but at this stage, only the launch partners can be revealed.

He said: “Because we’re not making this 100% live until Q1, the only thing we’re able to announce is the brands that are part of the test group. One of the reasons we’re excited to get this live in market is that other brands will be able to engage with the experience and also it will give us a chance to get better data at scale that will help us continue to refine and enhance the products.”

The details of the two new opportunities for advertisers are as follows:

Video takeover

Video takeover works for users engaging with Spotify on their desktop computers. Effectively, it is a 15 or 30 second ad break which is served only if client is in view giving the advertiser what Spotify calls “100% share of voice” which is a jargony way of saying it’s the only ad the user can see.

VideoTakeover

Sponsored sessions

Sponsored sessions involve exclusive sponsorship of 30-minute ad-free sessions for non-paying Spotify users on their mobile devices. Listeners must watch a full 15 or 30 second ad to receive 30 minutes of ad-free listening.

SponsoredSession

Levick says the two offerings are highly targeted, based around what the streaming service calls “moments”. He says: “Moments are activities, based on our data, we believe the consumer is engaging in in real time. An example a moment would be waking up. Commuting would be a moment. Working out would be a moment. This is the next level of targeting we’re looking into and brands would be excited because it’s giving them the chance to bring much more relevant content to an activity that consumers are already engaging in.”

Spotify offers an ad funded free service as well as a paid subscription model. When asked whether he prefers paying subscribers or users who see ads, Levick said: “We’re happy if people come and engage on the free platform, we’re happy if people come and become premium subscribers. Our goal, ultimately, is to get as many people on the platform as possible and then let them choose which way they want to engage with Spotify.”

Levick, who is based in New York, noted the success of the platform locally. He said: “Spotify is going incredibly well in Australia. It’s been one of our most successful launches in the last two or three years. We’re very happy with the share of audience we have. We’re very happy with the growth rate. We’re very happy with the partnerships in the region.”

According to Nielsen, Spotify owns 70% of the music streaming market in Australia.

Levick also believes the uptake Down Under has had a roll on effect to other countries. “We think that it has even had a lot to do with our success in New Zealand,” he said.

Please login with linkedin to comment

CC's Hat Tip

Latest News

Pooled Energy Appoints Magnum & Co And The Wired Agency
  • Advertising
  • Marketing

Pooled Energy Appoints Magnum & Co And The Wired Agency

Swimming pool electricity retailer Pooled Energy has appointed Magnum & Co and sister agency The Wired Agency to its roster, following a competitive pitch. Magnum & Co will handle Pooled Energy’s social media and PR, while The Wired Agency has been appointed to manage the company’s search and display advertising. Both agencies will collaborate with […]

Masculinity Roasted In Clever New Ad
  • Advertising
  • Campaigns

Masculinity Roasted In Clever New Ad

Think masculinity means drinking a case without chundering? Well, rediscover it (& possibly yourself) with this top ad.

by B&T Magazine

B&T Magazine
WPP AUNZ Partners With Career Trackers Indigenous Internship Program
  • Advertising

WPP AUNZ Partners With Career Trackers Indigenous Internship Program

Advertising and marketing network WPP AUNZ has joined the Career Trackers Indigenous Internship Program as part of its commitment to a diverse workforce, and the creation of opportunities that inspire excellence. As part of the program, WPP AUNZ has welcomed its first three interns: Abi-Leigh Dillon (WPP AUNZ), Amy Mccutcheon (MediaCom) and Jacinta Evans (Ogilvy), […]

Taboo Goes On A Hiring Spree
  • Advertising

Taboo Goes On A Hiring Spree

Taboo has gone a hiring spree. And when it comes to sprees, that's far better than a shooting one or a farting one.

M&C Saatchi Group’s 1440 Shuts Up Shop
  • Marketing

M&C Saatchi Group’s 1440 Shuts Up Shop

Sadly, M&C Saatchi's 1440 is no more. And chances of it being reborn as 1550 not looking much chop either.

by B&T Magazine

B&T Magazine
Luke Kelly Becomes A Partner At HBT
  • Advertising
  • Marketing
  • Technology

Luke Kelly Becomes A Partner At HBT

B&T's not sure what's with that twirly thing in the press photo, suffice to say a vortex to an alternate dimension?

Women In Media Profile: Alison Michalk
  • Media

Women In Media Profile: Alison Michalk

If B&T's Women in Media profiles were an animal they would be a gazelle or lioness, or even a lioness eating a gazelle.

by B&T Magazine

B&T Magazine
Grant Broadcasters Makes Several Changes To Senior Executive Team
  • Media

Grant Broadcasters Makes Several Changes To Senior Executive Team

Independent media company Grant Broadcasters has announced a number of changes to its executive ranks. Grant Cameron will move up to become non-executive chairman for the company, and Alison Cameron (pictured above) – currently the chief operating officer – will assume the CEO role. Dugald Cameron remains responsible for the family’s investment portfolio and is […]

Shopper Media Group Partners With Mist To Offer New Tech & AI-Driven Capabilities
  • Advertising
  • Media

Shopper Media Group Partners With Mist To Offer New Tech & AI-Driven Capabilities

Australian retail out-of-home (OOH) business Shopper Media Group (SMG) has announced a partnership with AI-powered wireless networks provider Mist. The partnership will see SMG offer new WiFi, analytics and location-based services across the company’s portfolio of Australian shopping centres. Mist currently provides WiFi and location services using virtual Bluetooth LE technology to businesses across all […]

Indy Agency This Is Flow Wins Cruiseco’s $5 Million Media Account
  • Advertising
  • Media

Indy Agency This Is Flow Wins Cruiseco’s $5 Million Media Account

Travel organisation Cruiseco has announced the appointment of Sydney independent agency This is Flow (TIF) to handle its $5 million media account. This is the first time Cruiseco has appointed an agency, having managed its communications internally. Cruiseco is the largest and broadest distributor of cruise products in the Southern Hemisphere. With a membership base […]

Women In Media Profile: Naomi Shepherd
  • Media

Women In Media Profile: Naomi Shepherd

Need a Monday morning pick-me-up? You could stand naked next to the office fridge or read these inspiring words.

by B&T Magazine

B&T Magazine
APN Outdoor Takes Off With Queenstown Airport Contract
  • Advertising
  • Media

APN Outdoor Takes Off With Queenstown Airport Contract

Out-of-home media business APN Outdoor has won the tender for New Zealand’s Queenstown Airport. As part of the new agreement, APN Outdoor has flagged extensive development plans for Queenstown Airport’s advertising assets. The new contract adds Queenstown Airport to APN Outdoor’s existing portfolio of Auckland and Christchurch Airports. The media company will hire a South […]