Spotify Selling to Brands with Sponsored Playlists

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As announced in their official blog post, Spotify is now offering companies the opportunity to sponsor playlists on their popular streaming platform.

Spotify’s advertising revenue increased by 98% in 2015, despite this, Spotify’s annual non-premium membership income, which is the income gained from the adverts between songs, stood at just 10% of its total sales – $219m (€195.8m).

In a bid to increase advertising revenues, Spotify is launching its new campaign to cash in on the big companies and brands. Kia, the South-Korean automotive company, has already signed up for this approach for the launch of its new Sportage. And according to Adweek, Target and McDonald’s have already shown interest in purchasing sponsorships in the beta stage.

When you look at the numbers, you can see how Spotify has enticed these massive brands into sponsoring playlists. Spotify has more than 400 owned playlists to sell to advertisers, with the most attractive and costly being listed on their blog post, Today’s Top Hits (8m followers), Rap Caviar (3m followers), ElectroNOW (2.5m followers) and Hot Country (2.4m).

“So far, the results have been outstanding, both in terms of audience engagement and brand impact,” states the official blog post.

Spotify adds: “Think content plus context; the right message in the right moment. Cardio or Power Workout are perfect for footwear brand expanding from lifestyle shoes to workout sneakers.”

From the sounds of it, Spotify have their eye on all the big brands within multiple markets.

Brands can sponsor these playlists for a week at a time, in return, they have full control of displayed ads, including their company’s logo, around the product. For advertising to Spotify’s free members, sponsors are granted control of the first ‘commercial break’.

The sponsorship of playlists has already been launched in the US, with a similar setup being rolled out in beta stage within the UK.

Along with this Spotify has recently announced that their Discover Weekly service, which serves up a personalised playlist to its users every week, has registered 5 billion song plays from 40 million users within a year. Whether Spotify will use these figures to sell ad space on Discover Weekly we will have to see.

Their official blog post goes on to say “Music listening has changed a lot over the years. We’ve moved past the album, the single, even the download. Now it’s all about the playlist.”

This is something Find What You Want believes in, but doesn’t sell their playlists. Search, create and listen to your favourite music together with like-minded music lovers, for FREE with NO ads at findwhatyoulike.com.

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