Since Spotify Ad Studio’s introduction in 2017, brands, artists and music marketers have utilized the self-serve promotional platform to reach listeners right when they’re active, listening and in the mood to discover music. While the majority of Spotify’s revenue comes from paid subscriptions, the platform aims to monetize the podcasts, music and other content that non-subscribers access by using audio advertising and banners on the desktop and mobile app.
After over a year of testing the platform, advertisers began demanding a means to justify ROI and have access to deeper insights surrounding audience behavior. 207 million users later, Spotify recently unveiled a new set of advanced audience targeting capabilities on the ad-supported free tier, allowing the :30 second audio ads to be served to a specific fanbase: either fans of the artist you’re directly promoting or fans of similar artists.
Along with these new targeting capabilities came a new set of streaming conversion metrics to assist advertisers in understanding how listeners responded after they hear the audio ad and help track performance of ad campaigns. Some of these metrics include:
- How many listeners streamed your music after hearing your ad?
- How exactly did these listeners respond after hearing an ad? Did they listen to featured music? Did they log off?
- Did the ads resonate more with new listeners or existing listeners?
- And a favorite new addition: what was the users intent rate?
- How many users took an action after hearing your ad? Were they passive? Active?
- How many saved music to their libraries?
- How many added them to playlists?
With the addition of intent rate, we can now analyze the percentage of total listeners who took actions showing intent to stream music again in the future. Actions include saving music (by tapping the heart icon or “save”) or adding it to a playlist.
These new conversion metrics allow advertisers to measure the direct impact their campaigns had on streaming behavior and create benchmarks to compare future campaigns. By learning how audiences engaged with your ad, you can use that information to strategize future advertising – an advanced insight to marketers that is worth its weight in gold.
Music advertisers, brands and artist teams can now directly demonstrate how advertising on-platform on Spotify drives results, even days after being served an ad. The addition of these metrics makes Spotify Ad Studio more transparent to advertisers and helps determine ROI from campaigns geared around driving listenership and streams.
We asked, and Spotify delivered: audio ad attribution, streaming conversion metrics and a direct way to measure ROI. Dive into more details here.
