Q: How does Spotify formulate and execute mobile-first marketing strategies to stay ahead in the highly competitive music streaming market? 

“As the world’s most popular audio streaming subscription service, we have a uniquely engaged audience as people use Spotify for more than 2.4 hours every day, making it essential to people’s daily lives. 

“Spotify is the home of premier audio content that drives culture, empowering brands to build authentic connections with audiences. With over 100 million tracks, five million podcast titles, and 350,000 audiobooks, people use Spotify to soundtrack their lives.

“Spotify connects fans with the artists and creators that they love, bringing a cultural influence that makes it a must-buy for advertisers. From programs like music consulting via AUX and interactive ad formats like CTA cards to more visually inspiring video ads, Spotify offers brands a range of creative opportunities to reach key audiences and effectively drive impact for their brand.”

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Q: What strategies does Spotify employ to enhance user engagement within the app and across various mobile platforms? 

“The Spotify experience offers inspiration, discovery and interactivity. We connect fans with the artists and creators they love through personalised and engaging experiences.

“Personalisation is at the heart of what we do. In fact, when we ask our listeners what they like most about us, more than 81% cite our personalisation, which drives strong engagement. 

“Spotify’s existing recommendations come to life through innovative, personalised products like DJ the Spotify Home feed, Discover Weekly, Blend, Made for You Mixes and daylist. 

“Most recently, we launched Song Psychic, a fun and mystical experience that can help listeners answer life’s questions — all through the lens of music. With Song Psychic, listeners have the chance to choose from a selection of pre-populated questions relating to nine topics, ranging from My Future to Life’s Greatest Mysteries. Based on your responses, Spotify’s Song Psychic will select the perfect song to answer your question.”

Q: How does the development of innovative advertising formats cater to Spotify’s mobile users? 

“Since Spotify entered the podcast space just 5 years ago, we’ve transformed the industry. We’ve gone from practically zero market share and a handful of podcasts to being a global leader in the market with more than five million podcasts on the platform in more than 180 markets.
From 2018 to 2023, there has been a 110% increase in daily time spent listening to podcasts across the UK population (source: eMarketer 2023), and brands are taking note. The consumption is already here but the ad revenue is still catching up.

“Just like with digital video, it took a while for ad spend to follow consumption. We’re seeing the same trajectory in audio as more and more consumption and distribution moves from broadcast to streaming, and we’re leading the charge in evolving the audio experience, including monetisation.

“Over the last few years, we’ve been modernising podcast advertising to make it a true digital ad channel – just like video and social. By introducing better targeting with tools like Streaming Ad Insertion, helping advertisers reach podcast listeners at scale with the Spotify Audience Network, proving the impact of podcast advertising with innovative measurement solutions like Spotify Ad Analytics and innovating on the ad experience itself – we’re bringing digital audio to the forefront and making it a must-buy for advertisers.

“This isn’t just good for Spotify, but for advertisers and creators across the industry.”

Q: On the back of Spotify’s recent partnership with On Running, how did the partnership evolve?

“On wanted to focus on highlighting the synergy between music and running in its latest campaign ‘Max Energy. Always.’ Given this, On naturally turned to Spotify to effectively reach their target audience of runners and build a deeper connection with listeners. 

With video, audio and display ads on Spotify, On was able to not only raise awareness around its Spring 2024 collection and tease the launch of its new Cloudmonster shoes collection, but also spotlight the intrinsic connection between music and running with a new track by artist Jayda G that was created specifically for the campaign.”

Q: With the partnership, how does the platform ensure a seamless integration of brand messages within the mobile user experience?

“On leveraged a variety of ad formats to create a holistic experience on Spotify. The audio ads highlight the launch of the Cloudmonster 2 model and tease Jayda G’s new track, ending with a call-to-action for listeners to check out the exclusive song on on.com.

“Meanwhile, the video ads were created to be in the style of a music video, highlighting our collective need for energy – featuring Jayda G along with real runners, and showcasing the new Cloudmonster 2 model.

“On also targeted runners for its Spotify ads, ensuring that the sportswear brand would effectively reach its key audience and build a deeper connection with listeners.”

Q: With Samsung recently announcing its Galaxy Ring, how does Spotify envision its role in wearable technology, and how does it adapt its marketing strategies accordingly? 

“People now have more ways to listen as they integrate devices like smart speakers, phones, tablets and more into their lives. 

“We aim to deliver a seamless listening experience for users across platforms, programs and devices – enabling them to listen wherever they are and whatever they’re doing. No matter where you are or the moment you’re in, we want to create less work to get to the audio you love. That means being everywhere our users are.”

Q: What innovations or trends do you predict shaping the future of mobile marketing for Spotify, and how is the platform preparing to stay at the forefront of these developments? 

“There’s a lot of work happening in the interactivity space in audio. We’ve introduced new experiences like Blend and Collaborative Playlists that make sharing the music you love easier than ever. Our latest feature Jam is a personalised, real-time listening session for your group to tune into together, building on some of our popular interactive features and combining them with our personalisation technology to take real-time listening with friends to the next level. 

“We want to bring this to the ad experience, too. This is why we launched call-to-action cards (CTA cards) in the UK as a new format that makes podcast ads interactive for the first time with an experience that enables listeners to hear, see and click. 

“For advertisers, bringing interactivity to the audio experience provides an unparalleled opportunity to get creative in how they communicate their key messages, and paves the way for better measurement and understanding on if their target audiences took action after hearing the ad. 

“Additionally, as AI continues to be top of mind across mediums, podcasters are racing to keep up with this quickly evolving AI landscape in the digital audio space. At Spotify, we believe that AI has the potential to offer real benefits to the audio industry.

“It’s very early days in an incredibly fast-moving and developing space. We announced that we’re piloting Voice Translation for podcasts, a groundbreaking feature powered by AI that translates podcasts into additional languages—all in the podcaster’s voice.

“While this type of technology definitely brings challenges, our focus is on helping creators connect with audiences, monetise their art, and build careers, and I imagine we’ll see even more innovation of this kind in the future.”

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According to the Commission, Apple applied restrictions on app developers preventing them from informing iOS users about cheaper alternative subscription services outside the app.

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Illegal under the EU antitrust rules, the move comes as rival streaming service, Spotify, launched a formal complaint against the streaming giant, which dates back almost a decade, which Apple said it will appeal.

As a result of the fine, Apple will have to remove terms to prevent developers from informing subscribers about alternative subscription platforms.

The European Commission said Apple’s conduct may have resulted in many iOS users paying higher prices for streaming subscriptions due to the “high commission fee imposed by Apple on developers and passed on to consumers in the form of higher subscription prices for the same service on the Apple App Store”.

The European Commission’s Executive Vice-President in charge of competition policy, Margrethe Vestager, said: “For a decade, Apple abused its dominant position in the market for the distribution of music streaming apps through the App Store.

“They did so by restricting developers from informing consumers about alternative, cheaper music services available outside of the Apple ecosystem. This is illegal under EU antitrust rules, so today we have fined Apple over €1.8 billion.”

However, Apple released a statement claiming that the biggest beneficiary of the ruling, Spotify, “has the largest music streaming app in the world, and has met with the European Commission more than 65 times during this investigation”.

“The decision was reached despite the Commission’s failure to uncover any credible evidence of consumer harm, and ignores the realities of a market that is thriving, competitive, and growing fast,” Apple stated.

“That’s because Spotify – like many developers on the App Store – made a choice. Instead of selling subscriptions in their app, they sell them on their website and Apple doesn’t collect a commission on those purchases.”

“All told, the Spotify app has been downloaded, re-downloaded, or updated more than 119 billion times on Apple devices. It’s available on the App Store in over 160 countries spanning the globe. And there are many more ways Apple creates value for Spotify, at no cost to their company.”

“It takes continuous effort and a lot of investment for Apple to make the tools, the technology, and the marketplace that Spotify uses every day. We’ve even flown our engineers to Stockholm to help Spotify’s teams in person. The result is that when a user opens the Spotify app, listens to music on their commute, or asks Siri to play a song from their library, everything just works. And again — Spotify pays Apple nothing.”

Meanwhile, Spotify added that Apple’s “behaviour limiting communications to consumers is unlawful”.

In a statement, the streaming giant said: “This decision sends a powerful message – no company, not even a monopoly like Apple, can wield power abusively to control how other companies interact with their customers.

“Apple’s rules muzzled Spotify and other music streaming services from sharing with our users directly in our app about various benefits – denying us the ability to communicate with them about how to upgrade and the price of subscriptions, promotions, discounts, or numerous other perks.

“Of course, Apple Music, a competitor to these apps, is not barred from the same behaviour. By requiring Apple to stop its illegal conduct in the EU, the EC is putting consumers first. It is a basic concept of free markets – customers should know what options they have, and customers, not Apple, should decide what to buy, and where, when and how,” it concluded.

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Inspired by fortune telling, the Magic 8 Ball and decision fatigue affecting people every day, the new feature will help users answer questions through the lens of music.

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For example, users will be able to pick from a list of nine topics including school, style, lunch, love, career, myself, my future, friends & family, and life’s greatest mysteries.

They will then have Song Psychic read their mind, with users being able to pick from a variety of pre-populated questions, like “Should I go on this date?”, “Should I book a vacation?” or “What should I have for lunch?”.

After selecting a question, a contemplation screen will be shown while Song Psychic finds the perfect song to answer their question.

When the answer appears, users have the option to listen to the song on the streaming platform ask another question, and share their results on social media.

To launch the in-app feature, the streaming giant has unveiled a creative marketing campaign across out-of-home and digital social platforms in the UK.

Spotify will also speak directly to users, reflecting to them the thousands of questions that pop into their heads throughout the day with an answer from Song Psychic.

Song Psychic will also come to life with a mix of static and video content around key locations in London, including Shoreditch, Battersea Park, Oxford Street and Soho, as well as across the London Underground.

The news comes as Spotify’s head of global marketing, Louisa Ferguson, described last year’s Wrapped as the “realest” so far, despite something about 2023 feeling “especially chaotic” with regards to how people consumed culture.

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From today [23 February 2024], listeners on the streaming platform in the US, UK and Germany who are runners will come across video, audio and display ads that feature On’s new Cloudmonster 2 model, along with a new song by artist Jayda G created specifically for the campaign. 

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The audio ads will highlight the launch of the Cloudmonster 2 and tease Jayda G’s new song, directing listeners to the running brand’s website to listen to the exclusive song. 

Meanwhile, the video ads will be in the style of a music video, featuring Jayda G along with real runners to showcase the new launches.

UK and Germany ads will be until 21 March, followed by US ads ending on 4 April 2024.

Spotify Global Head of Sales, Brian Berner, said: “Music provokes intense feelings. We know listeners get a mood boost when they tune into Spotify, resulting in a halo of good vibes for brands. With our focus on personalisation and discovery and a uniquely engaged audience, brands like On are able to effectively reach their target audience of runners and build a deeper connection with listeners who are in a positive mindset.

“I’m thrilled to see global brands like On creatively leverage Spotify and the power of music across a variety of our ad formats for such a fun and energising campaign.” 

On Global Marketing Lead of Running, Melanie Mueller, added: “Imagine you’re lacing up your running shoes, getting ready to hit the pavement. That moment, the anticipation, the beat building up in your headphones- that’s what the Cloudmonster 2 is all about: Max Energy. Always.

“In the same way that Cloudmonster 2 multiplies the energy, collaborating with Spotify shares the same essence. It’s a collaboration that elevates the connection between science, music and running.”

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Spotify has launched a new campaign that showcases the restrictions that Apple places on developers.

Some of these restrictions prevent users from being able to easily learn about new deals and promotions which could improve their digital experience and cut costs.

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As a result, the streaming platforms “Censored” campaign leverages the platform’s 3MF Premium offer for all eligible Free tier or new users in the UK, with the advert being plastered in key locations in London including Leicester Square and Westminister.

The ad, part of Spotify’s ‘Time to Play Fair’ campaign, which has seen the platform call Apple “outrageous” for trying to charge a 27% fee for transactions outside the App Store.

The campaign also features an email to all eligible iOS users with information about the offer redacted in the OOH displays.

Spotify Head of Global Government Affairs and Public Policy, April Boyd, said: “For far too long, Apple’s anti-competitive practices have kept UK consumers in the dark about ways to save money.

“We want to show consumers what a fairer digital market should look like, with greater transparency, increased convenience, and new promotions. This is why Spotify supports a strong DMCC Bill that creates a level playing field, ensuring the UK remains a leading market for digital innovation.”

The news comes as the company has urged the UK government to pass a strong Digital Markets, Competition and Consumers (DMCC) Bill that brings consumers an expanded tech sector. 

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Spotify’s Chief Financial Officer, Paul Vogel, has announced he will be leaving the streaming platform in March next year, days after the company announced it was laying off almost a fifth of its workforce to cut costs.

Vogel has been with the company since June 2016, joining from Barclays as Head of FP&A, Treasury and Investor Relations before being promoted to CFO in 2020.

The exit comes as the company announced earlier this week it will be cutting 17% off its workforce.

In a letter, Founder and CEO Daniel Ek said: “Economic growth has slowed dramatically and capital has become more expensive. Spotify is not an exception to these realities.

“To be blunt, many smart, talented and hard-working people will be departing us.”

The company has launched an external search for Vogel’s successor, it revealed.

Ek said: “Spotify has embarked on an evolution over the last two years to bring our spending more in line with market expectations while also funding the significant growth opportunities we continue to identify.

“I’ve talked a lot with Paul about the need to balance these two objectives carefully. Over time, we’ve come to the conclusion that Spotify is entering a new phase and needs a CFO with a different mix of experiences.”

He added: “As a result, we’ve decided to part ways, but I am very appreciative of the steady hand Paul has provided in supporting the expansion of our business through a global pandemic and unprecedented economic uncertainty.”

“As we initiate the search for a new leader, we do so from a position of strength. I am enormously proud of the strides we’ve made as a company.”

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Spotify’s head of global marketing, Louisa Ferguson, has described this year’s Wrapped as the “realest” so far, despite something about 2023 feeling “especially chaotic” with regards to how people consumed culture.

This week, the online streaming platform launched its Wrapped personalised user experience with new interactive features to help fans celebrate their year on the app, alongside a creative marketing campaign across OOH, digital social and on-platform across 31 markets.

“We wanted to acknowledge that feeling because it felt very accurate to 2023,” Ferguson said.

“Amidst all this, we realised that “your Wrapped doesn’t lie.” The data is real. And so we leaned into creating the realest Wrapped ever.”

According to Ferguson, who has been with the company since 2020, this year’s Wrapped campaign has been the biggest campaign it has delivered with individual statistics being created for millions of users across 170 markets and in over 35 languages.

She continued: “We started the year with Playlist in a Bottle and were overwhelmed by the positive user response. We expanded the My Top Five franchise. We also developed a genre-based experience called “Find Your Flow.”

“These experiences represent a new way of thinking about marketing and product at Spotify and there’s more coming after Wrapped, which I won’t give away just yet.”

“Wrapped is the capstone of what has been an incredibly delightful year of Spotify interactive experiences,” she added.

“Originally, we believed these experiences needed to be short and sweet. But we’ve found that there’s a cohort of fans that want to go a level deeper. They want to engage. This was exciting because it inspired us to do even more data-rich, complicated experiences.

“We also learned that market nuances matter, and for Wrapped, these learnings just reinforced the need to think critically about global versus local campaign executions.”

Spotify’s global marketing boss also revealed the streaming platform has plans to launch “tons of events” around the world to “celebrate the year in music”, which will be complemented by out-of-home experiences with interactive components.

She said: “We’ll also reveal our top artist through a special billboard moment in several cities across the world.

“I think what’s become wonderful about our Wrapped celebration for the global top artist in particular is that it’s given us permission to deliver special experiences for fans.”

“Some of our coolest, craziest work comes from those collaborations. Critically, it’s a celebration for the fans as much as the artist. We’re able to recognise both and celebrate the achievement,” she concluded.

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Though the terms of the deal have not been shared, Spotify has said that it will use the acquisition to accelerate its entry into the live audio space – a space that is, of course, currently led by Clubhouse.

“Creators and fans have been asking for live formats on Spotify, and we’re excited that soon, we’ll make them available to hundreds of millions of listeners and millions of creators on our platform,” said Gustav Söderström, Chief Research & Development Officer at Spotify. “The world already turns to us for music, podcasts, and other unique audio experiences, and this new live audio experience is a powerful complement that will enhance and extend the on-demand experience we provide today.”

In particular, Spotify aims to use the Locker Room app – which debuted in October 2020 – to open up live audio to a wider range of creators and fans, continuing to host sports-based programming while extending the experience to cater for music and cultural programming. This expansion will also see Spotify debut interactive features including real-time discussions, debates, ask me anything (AMA) sessions, and more.

“We are excited to join forces with Spotify and contribute to building the future of audio – we’ll invest more in our product, open the experience to Spotify’s audience, diversify our content offerings, and continue expanding the community we’ve built,” said Betty Labs Founder and CEO Howard Akumiah. “With Spotify, we’ll continue to offer the best home for sports fans and use the lessons we’ve learned along the way to create the ultimate destination for live conversation around music and culture.”

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The main aim of the update is to align the desktop and web experiences, while making it easier for users to access content. The ‘Search’ feature has been moved to the left side of the navigation page, while the listeners’ profile pages now include top artists and tracks. And users can now start a radio session for any song or artists radio by clicking on the ‘…’ menu.

Spotify is also adding the ability to write descriptions, upload images, drag and drop tracks, and use an embedded search bar in playlists. Moreover, listeners will be able to edit ‘Queue’ and view ‘Recently played’ via the desktop app and have more control over their libraries via a dropdown menu.

Finally, premium subscribers will have the ability to download music and podcasts for offline listening – a feature that has long existed on Spotify’s mobile app.

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Users – whether premium or free – will see a ‘Recently played’ destination on their home screens, enabling them to see up to three months’ worth of listening history and rediscover the content they had recently listened to.

For premium users, new and relevant podcast episodes will be featured upon opening the Spotify app. New episodes will be marked with a blue dot, and episodes that the user has already started will features a progress bar showing how far they are into the episode.

Finally, also for premium users, there will be a section of the home screen offering personalised music recommendations, based on what the user has been listening to, helping music lovers to discover new songs from their favourite artists or uncover a new favourite.

Spotify will roll out these updates to both Android and iOS users around the world over the remainder of this month.

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