Blog Post

Social Media

Céline

Otto

published on:

13.12.2022

Spotify Ads - Advertising in the Age of Streaming

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As the world's largest music streaming platform, Spotify reaches millions of listeners who use the app to listen to music or their favorite podcast every day. It's no wonder Spotify is ideal for advertising. In short: Spotify Advertising is all the rage! 

Spotify Advertising offers advertisers the opportunity to build a personal connection with customers through audio advertisements. Unlike traditional ads, Spotify ads don't completely interrupt the audio experience but ideally contribute to the listener's enjoyment. Another advantage is that listeners are more likely to consciously register the message compared to other advertising environments, as they tend to focus on what they hear rather than mindlessly scrolling through a browser. Digital audio advertising allows you to reach listeners with personalized messages and engage them with topics relevant to them. According to Spotify, 75% of users say they are more likely to remember an ad when the ad is tailored to their current situation or environment. 

Spotify's user numbers are growing daily. Already, the audio provider has approximately 456 million users per month, about 67% of whom are aged between 21 and 35. In Germany, the age distribution of Spotify users is as follows: 14-19 years 18.9%, 20-29 years 33.8%, 30-39 years 23.3%, 40-49 years 10.2%, 50-59 years 9.4%, 60 years and older 4.3%. Therefore, Spotify is the right platform for advertising targeting the 14-29 age group. Users' attention is particularly high with pure audio formats, which makes Spotify ads especially suitable for conveying information to target audiences, increasing brand awareness, and strengthening the company's image. Spotify ads are therefore especially recommended for advertisers looking to achieve marketing goals such as reach and brand building.

Learn more in the current blog post from the Warriors about the types of Spotify ads available and how you can benefit specifically from using digital audio advertising.

Types of Spotify Ads

Spotify advertising can be done in different ways. Each of these formats has its own advantages and reaches listeners in a unique context.

Classic Audio Ads

The first option for placing an ad on Spotify is classic audio ads. These are placed for listeners independent of device usage and time of day between the songs they are listening to. Users are not distracted and can fully focus on the message. Such ads are even more effective when equipped with a link that leads directly to a landing page or app.

Video Takeover

Another option is so-called 'video takeovers'. These video ads are only displayed to users when they actively use the app or platform, i.e., when they are searching for music or artists. This way, it is guaranteed that the message will be both seen and heard. Advertisers benefit from Spotify's industry-leading platform viewability with video ads. All video ads also contain a customizable call-to-action button to encourage interaction with the ad.

Sponsored Sessions

Another video solution is the 'Sponsored Session'. Here, the advertiser gifts listeners 30 minutes of uninterrupted music. The video is only played when the screen is in the user's view. This advertising format ensures the advertising company 100% share of voice this way.

Podcast Ads

Recently, Spotify has enabled podcast ads and streaming ad insertion (SAI) in almost all Spotify original and exclusive shows. For millions of listeners worldwide, podcasts are a regular and reliable source of news, entertainment, and information. Spotify podcast ads combine the intimacy of traditional podcast ads with the precision and transparency of modern digital marketing. With streaming ad insertion, Spotify podcast ads provide verified and measurable ad impressions instead of downloads. This new level of transparency provides advertisers with audience insights and ad performance data, enabling them to optimize their podcast strategy even more efficiently.

Overlay Ads

Another option to advertise on Spotify is overlay ads. These are played as soon as the streaming person returns to the Spotify app. The display ad is clickable and links to your company's website or app, thus increasing traffic.

Homepage Takeover and Leaderboard Ads on Desktop

There are two more ad formats, which are, however, limited to Spotify's desktop application: the homepage takeover and the leaderboard ads. Homepage Takeover are display ads placed as banners on the Spotify homepage for 24 hours. When the Spotify application is actively visible on the screen, the Leaderboard ads are played for 30 seconds to reach users particularly effectively. 

How Spotify Advertising Succeeds in Spotify Ad Studio

For audio advertising on Spotify, only a few steps are necessary. Implementation begins with creating a Spotify account, followed by signing up at the Spotify Ad Studio. The Spotify Ad Studio is the streaming service's advertising platform and the only requirement.  

The first step is setting the available advertising budget. Even with a monthly budget of €250.00, a small campaign can be run, but we recommend a minimum budget of €2,000.00. Defining the exact target audience is crucial here, allowing you to reach listeners based on gender, age, location, interest, or music taste, among other factors. 

Subsequently, both audio ads and video ads can be configured. Spotify provides a wide range of free tools for this purpose - from speakers to scriptwriting assistance. Evaluations are also conducted through simple tracking and automated reports via email. Additionally, real-time reporting can determine how the target audience interacts with the created ads, enabling direct optimizations in the next step.

Best Practices

To leave a lasting impression on listeners with your ads and to optimize the campaigns, the following tips are helpful:

  • Use real-time targeting

    • Significantly increase the intent rate with relevant target audiences

  • Formulate a clear call-to-action

    • Ads with a direct prompt have a significantly higher click rate

  • Mention the brand clearly

    • Clearly mention the company in the audio ad

  • Frequency: 3-5 per user/week

    • Send the message multiple times to the target audience

    • More than 5 messages per user per week are not recommended, as effectiveness may otherwise decrease

  • Use suitable background music

    • Ads with background music achieve a significantly higher intent rate

    • Choose the right genre for the selected target audience

  • Grab users' attention

    • Funny and inventive ads stick in the mind

internetwarriors - Social Ads Agency Berlin

Do Spotify ads sound interesting and are they the perfect addition to your online marketing strategy? Then you are in the right place with the Warriors! 

Audio marketing on Spotify offers exciting potential for companies. As an online advertising agency with over 20 years of experience, internetwarriors specialize in topics such as social ads and campaign management. Within the scope of our SMM support, we assist you from the start - in creating an account, creative content, campaign creation, to web tracking implementation and reporting. And this is not only in connection with Spotify ads! 

If your advertising goals focus on selling products, increasing sales, or gaining a larger market share, we especially recommend Google Ads.

Do you want to fully exploit the potential of Spotify ads and optimally complement your online marketing strategy? Then you're in the right place with the Warriors!

As an experienced Social Ads Agency with more than 20 years of expertise, we support you in running effective Spotify ads. From account creation to campaign optimization, we are by your side. Our extensive range of services also includes other social ads and campaign management services.

Benefit from our experience and let's achieve your advertising goals together. Contact us today and find out how we can support you!

Contact us now and benefit from our extensive range of services!

Céline

Otto

Céline Otto has been part of the SEA team at internetwarriors since April 2022. She is highly knowledgeable in Social Media Marketing and Search Engine Advertising, and she always stays updated with the latest trends (not just in online marketing). Whether it's about increasing your company's reach and visibility or generating new leads, Céline is fully committed!

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