Spotify Taps Droga5 to Build Awareness with Consumers

Music-Streaming Service Plans to Run TV Campaign

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Spotify has hired Droga5 to handle its creative duties, as the music service popular in tech and music circles looks to build awareness with a more mainstream audience, Ad Age has learned.

The selection of the agency, led by Spotify's VP of global marketing and partnerships, Erin Clift, marks the first time the company has hired an agency of record. "We're very excited to work with Droga5," Ms. Clift said in a statement. "They are incredibly talented, understand our goals and are passionate about Spotify...and are the perfect partner to help us connect music with a broad, mainstream audience."

Both Spotify and Droga5 declined to discuss plans for the campaign's rollout. But according to executives familiar with the matter, the agency will begin working on a multi-platform ad campaign that is expected to include TV commercials and may run in the U.S. and other global markets.

Spotify lets people stream songs from a database of millions of songs, and also lets them create custom radio stations to stream. The service has largely built its following up to now through word of mouth spurred by intense coverage from tech blogs, and has benefitted from an integration with Facebook that lets users easily (and sometimes accidentally) share the songs they are listening to to their Facebook news feeds.

Launched in Sweden in 2008, Spotify came to the U.S. in 2011. The news of an agency comes after a refresh of the platform that was announced a couple of months ago.

At that time, CEO Daniel Ek said that service had 5 million paying subscribers, though only 1 million of those are U.S. subscribers -- suggesting that building awareness in the U.S. will likely be one major goal via the forthcoming marketing program. The company has about another 15 million users who use the free, ad-supported version of the service.

The privately-held company has raised $188 million in venture capital, according to Crunchbase

At Droga5, Spotify joins a roster that includes Kraft, Prudential, Hennessy, Newcastle and Coca-Cola's Diet Coke and Coke Zero brands.

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