Spotify Will Roll Out Enhanced Targeted Advertising Tools to More Advertisers
Will Spotify also allow freemium listeners to skip ads?
Last summer, Spotify rolled out targeted advertising in Australia — with a twist.
Users on the platform’s free, ad-supported tier could completely skip ads while streaming their favorite music.
The company had long hypothesized users would only listen to the ads they cared about.
Closely monitoring their ‘test’ down under, Danielle Lee, the company’s Global Head of Partner Solutions, explained,
“Our hypothesis is if we can use this to fuel our streaming intelligence, and deliver a more personalized experience and a more engaging audience to our advertisers, it will improve the outcomes that we can deliver for brands.
“Just as we create these personalized experiences like Discover Weekly, and the magic that brings to our consumers, we want to inject that concept into the advertising experience.”
In theory, this would force advertisers in Australia to find new, creative ways to create targeted advertisements people wanted to listen to. Spotify had promised to refund advertisers for any ads skipped.
Now, the company has expanded on this theory.
Even more enhanced targeting for advertisers.
Two years ago, Spotify launched Ad Studio. The self-serve advertising platform would fully support its free, ad-supported tier with personalized ads.
According to the streaming music giant, it now has “thousands of advertisers of all sizes.”
Based on quarterly revenue and advertiser growth, the company has called Ad Studio its “fastest-growing advertising channel.”
Spotify’s latest blog post proudly proclaims,
“We’ve already seen success with a variety of advertisers — from concert promoters looking to promote new shows, to universities looking to raise awareness for their programs.”
The streaming music giant also confirmed that it will further expand targeted advertising. In the ‘coming months,’ Spotify will also roll out more targeting tools for demographic targeting and interest-based targeting.
“We’ll also be inviting select advertisers to reach known and prospective customers through an audience upload feature.”
The audience upload feature will reportedly allow a handful of select advertisers to upload their own audience data. This will help them, and presumably, other advertisers, reach known and prospective consumers.
Spotify Ad Studio remains available in the US, UK, Canada, and Australia.