Radio and Streaming Audio

Music Playlists Can Now Be Sponsored on Spotify

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A new ad opportunity from Spotify will let marketers create their own curated music playlists on the service, or sponsor one of Spotify's owned and operated playlists.

Sponsoring one of Spotify's playlists makes it easier for brands to reach a specific type of consumer performing specific activities. Popular Spotify playlists include Monday Morning Commute, Cardio, Power Workout and Teen Party. The No. 1 playlist, Today's Top Hits, has about 8.3 million followers. The second most popular playlist is Rap Caviar, followed by Baila Reggaeton.

Each playlist offers its own set of consumers. Some are more often listened to on mobile, such as workout and dance-oriented lists, while others are more popular on desktop while people are at work.

Credit: Spotify

Spotify plays ads to consumers who use its service for free. Premium subscribers, who pay $9.99 per month, are not served ads and will not see sponsors on Spotify playlists.

Spotify hopes music streaming behavior can become a new currency for advertisers. The company is working with data management platform Krux to make that happen.

Over the past several months the two firms have developed and tested a new offering that puts Spotify data to use for advertisers including Esurance and Lay's potato chips, specifically in the Spotify mobile app.

Spotify has first-party age and gender data on its users, and knows not only what music genres they prefer, but when they tend to listen. Now with the help of Krux's cross-device ID management, the music streaming firm is using its data to target users with ad messages from clients including insurance provider Esurance, which is using the Spotify-Krux pair-up to promote its savings message via audio and display ads on Spotify.

If you are exploring how to use streaming audio for your brand advertising, turn to Look Book for partners who can help.

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