Spotify Ads: How to Advertise on Spotify

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Even though you may have to wait a long time to see your next “Spotify Wrapped,” your company could still benefit from advertising on this popular streaming platform

Here’s what you need to know about advertising effectively on Spotify: 

What Is Spotify?

Spotify calls itself a “digital music, podcast, and video service” that provides users with access to millions of songs and other types of content from diverse creators worldwide. 

Spotify offers both free and premium versions, wherein the free version comes with advertisements, and the premium version comes with ad-free listening, unlimited skips, and higher-quality streaming. 

You can compare Spotify to other streaming apps like Apple Music and Pandora. 

Who Uses Spotify?

Spotify has 381 million active users. But who are these users? 

For starters, 29% of Spotify users are Millennials between 25 and 34. The next largest user group on Spotify is Gen Zers between 18 and 24, making up 26% of all users.  From there, 16% of users are between the ages of 35 and 44, 11% are between the ages of 45 and 54, and 19% are over the age of 55. 

So as you can see, Spotify caters to a wide range of different age groups due to its diverse content offerings. 

More males listen to Spotify than females, consisting of 56% and 44% of listeners on the app, respectively. 

A majority of Spotify users are located in Europe and North America — making up 58% of the app’s active user base. 

Outside of these two regions, 22% of Spotify users are located in Latin America and 20% of users come from the rest of the world, including Asia and Africa. 

Why Advertise on Spotify?

Based on what you’ve learned so far about Spotify, why is it worthwhile to advertise on this platform? And why should you choose to advertise on Spotify over similar platforms like Apple Music or Pandora? 

If you’re looking to reach many different types of people from all over the world, Spotify is the place to do it. Spotify caters to people of all ages, genders, and locations, as you can see. More specifically, Spotify is a great place to reach Generation Z and Millennial users as these groups tend to dominate the platform. 

If you’re looking to reach engaged users, look no further than Spotify! Spotify has some of the most engaged users, with listeners in North America spending an average of 140 minutes a day listening to content on the platform. 

This adds up to a whopping 70 hours per month per user. And when you compare the 140 minutes spent on Spotify to the 38 minutes spent on Facebook, it’s clear just how popular and engaging this application really is. 

If you’re looking to promote engaging content, you need to consider Spotify advertising. Spotify offers a whole host of various advertising formats specifically designed for the application and promotes user engagement naturally. 

What Are the Different Advertising Formats on Spotify?

Speaking of the different advertising formats on Spotify, here’s what you need to know about each of them so that you can choose the right format for your advertising goals and budget: 

Audio Ads

Perhaps the best way to advertise on Spotify is with an audio ad. Audio ads are great because they fit in flawlessly with the overall purpose of the app — which is audio streaming. These ads tend to be 15  to 30 seconds long, similar to a traditional radio ad. 

However, audio ads can incorporate images, increasing your ability to connect with your audience. When a user clicks on that image, they are then taken to your website or dedicated landing page

Video Ads

Another way to advertise on Spotify is with a video ad. Video ads are similar to audio ads in that they appear between songs; however, they incorporate video instead of just audio. As a result, video ads tend to be more engaging than audio ads. 

However, it’s important to keep in mind that many Spotify users aren’t going to be looking at their phones while simply streaming music. Therefore, they aren’t likely to be looking at your video content. 

Display Ads

Spotify also offers three types of display ads similar to the display ads used on other platforms. These ads are shown for 30 seconds on the screen, typically within the platform’s web version. A user can click on the display ad for more information or exit out of it. 

Homepage takeover ads are clickable ads that transform a user’s Home Page to reflect the advertised brand. Megabanner ads are banner ads that take up the bottom part of a user’s screen. 

Overlay ads are initially full-screen ads but can be exited before they automatically close after 30 seconds. 

Sponsored Playlists

If you want to take advantage of the true nature of Spotify to promote your brand, then you should consider a sponsored playlist. 

With a sponsored playlist, you add your music and content to a playlist that anyone can access. You can name it your brand and add a corresponding photo to drive brand awareness further. 

How to Create an Advertising Campaign on Spotify?

Launch your first advertising campaign on the platform by following these steps: 

  1. Create a Spotify advertising account by entering basic information about your business.
  2. Set your campaign name, objective, format, platform, schedule, and budget. 
  3. Select your target audience based on basic demographic factors like location, age, and gender. However, you can go beyond these basic targeting mechanisms by selecting different interests, real-time contexts, and genres of music. 
  4. Create your ad by uploading your content, whether a video, image, or audio file. 
  5. Preview your campaign and launch it if everything looks good.
  6. Track the performance of your campaign throughout its run and make any necessary adjustments to boost performance. 

How Much Does It Cost to Advertise on Spotify?

The cost of advertising on Spotify varies based on who you’re trying to reach. You will be competing with other brands to reach your target audience, so you need to be prepared to bid accordingly. Generally speaking, you can expect to pay $0.015 to $0.025 per ad served. 

In the old days, you couldn’t advertise on Spotify unless you were willing to spend at least $250,000 on the platform. These days, however, the advertising minimum is a more reasonable $250 per campaign. 

As a result, advertising on Spotify is affordable and accessible for new brands with smaller advertising budgets. 

Final Rundown on Spotify Ads

Many brands can take advantage of Spotify’s unique platform and reach through paid advertising campaigns with the right strategy and content. Spotify advertising is particularly accessible for newer and smaller businesses looking to get their feet wet in the paid advertising game. 

If your business fits this description, you should also consider working with marketing experts like Greg Gillman to boost your success on platforms like Spotify and beyond. 

Reach out for more information on how you can further grow your business with an omnichannel marketing strategy


What Is Spotify and How Does It Work? | Pocket Lint

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