Without a doubt, Spotify has established itself as something more than a simple music streaming company. It is a platform where enthusiasts can become leaders in their target markets and reach audiences as rap, hip-hop, rock, electronic music, and other artists.
If you want to successfully promote music on Spotify, there are a few valuable lessons this company can teach you in terms of its ever-rising marketing standards. Let’s get to it!
Spotify’s Budget for Digital Advertising Purposes
As of 2022, the company’s spending for marketing and sales purposes surpassed $1.62 billion, which is almost a forty-percent increase versus the same parameter in 2021. With over 236 million Spotify Premium subscribers, this investment seems to pay off — $3.41 billion in revenue.
As you can see, the company’s strategy helps it work as a powerhouse and overcome its operational losses — around $235 million. The same goes for its revenue from podcasts. Although the company’s marketing strategy isn’t aggressive there, softer pricing policies and high-end quality of licensed and original podcasts have led to this healthy and steady growth. Statistically, it is more popular than its rival, Apple Podcasts — 28.2 million versus 28 million monthly listeners by 2025.
At the same time, you can use the platform’s potential for personal advertising purposes. The system lets interested parties run marketing campaigns and drive your online visibility and brand recognition to the next level.
When it comes to Spotify Advertising itself, it complements your strategy with the following benefits:
- Customer-oriented and high-quality ads — check the tools stack of Spotify Ad Studio to create ads that match your business ideology and correspond with your development plans.
- Next-gen technology — Spotify’s algorithms, including AI-empowered mechanisms, revolutionize the way people listen to and reach new music.
- Customizable ads — your promotional strategy can now match the KPIs you find essential for your brand. Drive real traffic and awareness with tailored podcast, video, and audio advertisements.
With the help of third-party tools like Artist Push, you can also get an additional source of credible listeners, followers, plays, etc. to promote your content to new audiences with trackable efficiency. It is also a nice solution if your resources allocated for marketing purposes aren’t sufficient to afford Spotify Advertising — $250 for the service with the first project available free of charge.
Spotify Wrapped: Technological and Marketing Know-How
In a nutshell, Spotify Wrapped is a marketing initiative to bring up end-user data about their most beloved content on the platform and let interested parties share their findings on social media. Millions of people engage with this awareness campaign annually, which is mutually beneficial for musicians, listeners, and the brand:
- Musicians increase their chances of being rediscovered or explored by new markets thanks to this next-level word-of-mouth strategy.
- The company gains the same perks, showcasing its customer-oriented nature and making more users wonder how their musical tastes have changed over the years.
- Naturally, listeners receive another interactive tool to utilize Spotify’s functions more entertainingly and memorably.
In a cookieless way that won’t irritate any related parties, Spotify Wrapped is a sample of a future-forward marketing tactic to return customer engagement without difficulty. Let’s wait for future Spotify Wrapped discoveries in 2024.
Top Marketing Lessons from Spotify
The best thing about the brand’s strategy is that it makes end-user data personalized. Despite using AI, data science, and other innovative technologies, the company does its job as an ambassador of new music and podcast releases in an individually relevant manner.
With Spotify Wrapped and other marketing efforts, Spotify is a trendsetter when it comes to native advertising, engaging use of hashtags, and resonating communication to encourage more people to join its international community. Data-driven insights, personalized marketing, and tools to analyze and promote individual listening habits altogether sponsor new musicians to step into the market and join Spotify’s playlists to advertise their creativity and narratives.
At the end of the day, whether you rely on Spotify as a marketing guru or complement it with additional promotional means such as ArtistPush.me, you will be able to pave the right way to pursue your goals — the brand’s features are no jock and are going to become even better in the future.
