Proving Spotify's Advertising Effectiveness

July 6, 2017

Spotify has started diversifying its advertising beyond just audio spots with podcast and video options also available. Brand new Research from Neilsen Catalina has shown that those who use multi format, cross platform campaigns on Spotify usually have the most effective campaigns.

 

The study has shown that total incremental sales per 1,000 impressions for ads was 25% higher than average for 11 major brands. This study concluded that each 1,000 impressions generated $24 of revenue for clients. 

 

The study looked at ads that ran on the platform over a year, promoting food, non-alcoholic beverages, snacks, home care and personal care products. “For every thousand impressions we ran, we created 24 dollars of revenue. The Nielsen benchmark is $19.64,” said Jeff Rossi, Head of Industry, at Spotify.

 

Campaigns that ran on both desktop and mobile saw a 39 percent higher incremental sales over campaigns running on a combination of ad formats – display and audio – saw the greatest return; reminding us that Spotify's users interact with the platform passively and actively. Users who watch videos or actively browse songs and artists, so video and display ads also have a place. But users who start a playlist and letting it run in the background makes audio ads most effective.

 

If you want to find out more information about advertising on Spotify then contact Media Performance on 0207 856 0272 or send us a message via our contact page.

 

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