Spotify to Launch Two New Ad Offerings
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.
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.
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.
Latest News
DMARGE Founder Unveils Creator-Led Social Media Agency Feedstar
New creator-led social media agency Feedstar to be aimed directly at Gen Zs. Well, they'd hardly want print, would they?
TV Ratings (02/05/2024): A total of 1,753,000 Aussies Witness Port Adelaide’s Defeat
Seven's AFL numbers almost double that of the NRL last night. The NRL still easily winning for ruptured ACLs.
Hotglue Cashes In With La Trobe Financial Digital Media Account
Hotglue staffers learning their cashflows from their collaterals today after nabbing La Trobe Financial's digital media.
M&C Saatchi’s Sydney Creative Lead Exits
B&T's stopping short of calling it a revolving door at M&C at the present, but there's definitely heat on the hinges.
Taylor Swift’s Music Re-Enters TikTok As Universal Pens Landmark Deal
Yes, B&T may have spent 152 hours failing to get Taylor Swift tickets, but, as you'll read here, it's all behind us now.
HAVAS Red launches inaugural Influencer White Paper
Havas Red has debuted its first influencer white paper. Unless you print it out in colour, of course.
Two Sides Global Campaign Reports Increasing Greenwashing As Organisations Focus On Sustainability
New report confirms greenwashing's on the rise. Apparently Mars' 'work, rest & play' claims also under investigation.
Aruga Launches New HQ & Changed Ownership Structure
PR agency Aruga proves Brisbane is 'so hot right now'. So hot in fact, Adelaide's had to go on anti-anxiety meds.
Delicious & American Express Partner To Launch Month Out 2024 In Sydney
Cost of living got you eating noodles prepared in the two-minute style? Why not live vicariously through this.
Aussie Ad Market Continues Decline In March
The belt-tightening in adland shows signs of a turnaround soon. Bar the belt-loosening at the all-you-can-eat buffet.
VMA Focuses On Skills And Training For Members
If there was a post-COVID hangover (bar the anti-vax ranters) it was the rise in skills shortages. Here's another one.
Nearly 90% Of Consumers Want Transparency About AI Images, Finds Getty Images Report
Study finds consumers want transparency around AI images. Couldn't care less about photoshopped magazine covers.
The National Breast Cancer Foundation Partners With VML To Boost Funds
Anyone else feel we've exhausted the office morning tea for cancer? B&T proposes the office moonshine still instead.
Perry ‘Pez’ Lazaris Named New National Hit Network Announcer
Why is it mandatory for the media to only publish the nicknames of people in radio & underworld crime figures?
Before Adland: Garry Dawson’s Journey From Teacher To Marketer
Here, the Hopeful Monsters marketer talks his shift from the classroom to the room wherever marketers congregate.
Scott Cam Urges Tradies To Prioritise Sun Protection
The Block host promoting sun protection to tradies. Also, don't try getting into the RSL after 6pm wearing high viz.
PubMatic Study: Advertising On Retail Media Is 50% More Effective Than Social Media
New study finds retail media 50% more effective than social. B&T says two-for-one Tim Tams trumps the lot.
From MOWING to life GROWING: Jim Penman launches ‘Life Coaching’ services
Can't decide on getting the hedges trimmed or finding a deeper meaning to life? You're in luck with this new venture.
Budweiser Brazil Turns Songs That Name Drop The Iconic Brand Into Spotify Ads
It's strange that Budweiser never found a market among beer-swilling Aussies. Then again, neither did the fluffy duck.
Effie Worldwide Strengthens Board With 6 New Members
B&T hopes everyone's wearing their Maseur sandals at the Effies, as it's standing room only at the next board meeting.
Special Enlist A Penguin Named Nigel In Latest Energy Campaign For Contact
Special unveils Nigel the penguin in work for energy provider Contact. Apparently Percy the peacock was booked.
Anya Taylor-Joy, Chris Hemsworth & George Miller Ignite Sydney For Epic Mad Max Launch
The Mad Max film franchise is Australia's cinematic gift to the world. That & Chris Hemsworth's near perfect cheekbones.
IAS Launches First-To-Market Integration With Roblox To Provide 3D Immersive Measurement
Always thought you could do with better 3D immersive measurement? Happy days are ahead here.
Fast And Furious: Top Gear Australia Launch Thrilled Motorheads, Car Entusiasts And Guests
B&T is still no closer to knowing who the new Stig is, except that she is a woman and a ridiculously fast.
TV Ratings (02/05/2024): Seven’s The 1% Club Wins The Night
The 1% club did not live up to its name when it comes to TV ratings last night.
TRA Welcomes Raft Of New Hires; Bolstering Expertise Across Markets
Insights and research agency TRA announces slew of new hires. Still no news on the return of marble wash denim, however.
CX Lavender Hires Boston Consulting Group’s Kim Verbrugghe as Chief Strategy Officer
CX Lavender announces new strategy hire and channels 'acoustic folk act at local RSL' for the publicity pic.
Opinion: Community standards, will they be the death of us?
This columnist is talking community standards. Sadly not those people who put dogs in trolleys in supermarkets.
Tegel gets heads bobbing with new free-range chicken platform
Sure, there's a lot of moral considerations when buying a chook. Yet, not as baffling as buying eggs or canned tuna.
Study: 66% of Aussie men believe masculinity is under attack
Two-thirds of Aussie blokes say masculinity's under attack. That said, sales of Solo lemon drink appear robust.
‘Equal Writes’: Canyon reveals new campaign and refreshed brand for women and non-binary writers
As this brand redesign again proves, nothing beats black on white. Well, white on black in this instance.
Icon Agency bolsters consumer and integrated offer with major hires
Icon Agency unveils new recruits. As press photo confirms office moustache competition now a lay-down misère.
Clemenger launches agricultural graduate program
Has Farmer Wants A Wife triggered an interest in dagging & hay balers? This grads program may resonate.
Levi’s Appoint UM As Global Media Agency For $217m Account
Levi's are the jeans for rockstars, models & the cool kids. Although that's not stopped dads from ruining their image.
QMS Nabs Sean Rigby From oOh!media
Things set to get spicy at the next Outdoor Media Association dinner and dance as a rival gets poached.
Bumble Reveals New Brand Identity To Usher In New Era Of Dating
It's ironic that all the dating apps market themselves as having no weirdos, freaks or mummy's boys like their rivals.