There’s no shortage of digital platforms for marketers to advertise on. So much so that businesses are having a difficult time deciding on which platforms are best suited for their business and marketing goals.
Spotify is one of those platforms that marketers are still on the fence about including in their internet marketing strategy. The main reason being that Spotify ads are only played to those who do not pay for a subscription.
Spotify is currently one of the top streaming platforms, maintaining 36% of the global streaming market. It has an estimated 345 million active users and approximately 150 million premium members. These numbers are not quite at the 1 billion mark like Instagram and the 2 billion mark like Facebook, but Spotify is still a relatively new company, only going public in 2018.
Looking for more information about Spotify’s paid advertising programs? You have come to the right place. The following resource, written by our internet marketing company in Toronto, outlines everything you need to know before launching a Spotify Ad.
How to Set Up Ads on Spotify | Internet Marketing Company Tips
Spotify Ad Studio is a self-serve platform for digital marketers to create ads on Spotify. The ads are served to customers in 3 formats: Audio ads, Video ads and Podcast ads. The self-serve program has targeting settings that can be used to make sure messages are delivered to the right audience at optimal times.
The cost of ads is much greater than that of other platforms, like Facebook and Twitter. At one point, the minimum advertising price for a Spotify campaign was $250,000, which made it only feasible for big businesses and corporations. However, the price has since been lowered with the introduction of the self-serve advertising platform. The minimum bidding price now is $250.
Spotify ads involve behind-the-scenes bidding. As a result, your ads price will fluctuate, depending on the competition for your audience. Roughly it works out to $0.015-$0.025/ad served.
Follow these 4 steps to creating an ad. The process is simple:
- Create new campaign: Choose your campaign objective.
- Create new ad set: Choose your ad format, targeting parameters, budget, and schedule. This is also where you can see an overview of your estimated reach, frequency, and budget delivery likelihood.
- Create new ad: Upload your audio or video creative, then add a companion image, call-to-action, and clickthrough URL for your ad. Need help creating an audio ad? Use our free creative tools and services to create an audio ad from scratch.
- Review: Review your campaign and submit it for approval. After you submit your campaign, you can then add additional ad sets and ads.
Alternatively, you may hire a third-party digital marketing agency in Canada like iRISEmedia to set up the ads for you. We will set up the ads, optimize them, monitor them, and adjust them as needed to help you drive leads and conversions.
3 Reasons to Advertise on Spotify
- Audience – Without a doubt, the audience should be a factor to consider when selecting Spotify as an advertisement platform. Globally, Spotify has over 345 million active users and over 150 million premium users. The platform is accessible on iOS, Android, desktop, and Google devices. Even Fitbit has access to Spotify.
Spotify is a great platform to consider if your audience predominately consists of millennials. Millennials grew up in an age when music was readily available at the click of a mouse or the tap of a finger. Millennials are the iPhone and iPod generation. The added bonus is that Spotify does not have a song limit.
- Continuous Growth – Spotify is not going anywhere anytime soon. They are determined to be pioneers in the podcasting and music streaming industry. Several changes have been introduced in the last two years. One being the self-serve ad platform to lower the costs of advertising. Another being the addition of video and podcast ad options. Originally, advertisers were only allowed to promote audio ads. More changes to come, including partnerships with 3rd party publishers.
- Change in Consumer Behaviour – Generally speaking, users report to have positive experiences with businesses who advertise on Spotify. They state that it makes businesses seem relevant, young, genuine, trustworthy, and innovative. This means that consumer behaviours are changing. They are no longer viewing advertisements as a bad thing. They expect messages to be sponsored by a brand and don’t feel as though it takes away from their overall experience as much as they used to.
The Key to Keeping Spotify Advertising Costs Down | Internet Marketing Agency Tips
Advertising on Spotify can be very costly, but there’s one excellent digital marketing strategy that will not cost you a penny: creating a playlist.
Barilla recently made headlines with their Spotify Playlists that help you cook your pasta perfectly. source: marketingdive.com
Since Spotify’s creation, millions of playlists have been created by businesses, and they can help get your company’s name out there. A well-branded playlist moves the audience toward the feelings you want your customers to experience when interacting with your brand. That said, treat playlists should be treated like ads: both the order of the songs and the choice in music should be taken into consideration.
About iRISEmedia | Internet Marketing Company | Toronto
iRISEmedia is one of the top marketing agencies in Toronto that focuses on helping clients in Canada, the U.S. and globally with digital marketing services consisting of social media marketing, website design, SEO and SEM, app development, online reputation management and online PR. Our team helps clients manage and grow their online presence and branding to increase their social media presence, qualified web traffic and online leads.
If you are interested in jumpstarting a Spotify Ads campaign or would like to discuss your own company and marketing goals, feel free to get in touch with our ecommerce agency in Toronto. A member of our team will be happy to help & speak to you about including Spotify in your own marketing plan.
