The Spotify for Brands Team
Spotify is committed to providing advertisers with effective ad solutions that connect them with our valuable audience. That’s why we’re so thrilled to announce the launch of our new ad format, Active Media, in Australia.
Our new innovative ad format, Active Media, will help marketers reach and connect with our growing streaming audience in an even more engaging and personalized way. Active Media gives users the choice to hear your audio ad, view your video ad or not — which means that 100% of your investment goes towards the media your fans choose to engage with.
This is a win-win: users benefit from an improved experience that allows them to choose the ads they want to engage with. Spotify learns from each engagement, fueling a more personalized ad experience. Advertisers only pay for completed listens and views from an engaged audience. This migration to a cost per listen and cost per view model marks an evolution of our strategy to appeal to the needs of performance advertisers, in addition to brand advertisers.
Says Andrea Ingham, Head of Sales at Spotify AUNZ, about the Active Media launch, “At Spotify we’re committed to delivering the best possible free user experience for fans and advertisers. By introducing user choice through Active Media, we’ll be able to learn from each engagement so the personalization of our ads matches the personalization of our top playlists like Discover Weekly and Your Time Capsule.”
The ubiquity of streaming has dramatically changed how, when, and where we listen. With the world’s library of music in the palm of our hands — and connected in our cars, smart TVs, and smart speakers — we can now soundtrack our lives wherever we are, regardless of what we are doing.
Screenless listening globally continues to grow at a fast pace, with multi-device listeners spending 2.5+ hours streaming on Spotify (1), 50 million of our fans using Spotify in the car (2) and an increase of +40% in streams per day on smart speakers on our platform in the last six months (3).
For marketers, this shift to screenless moments is great news. Not only is eartime limitless — capable of reaching consumers in key screenless moments like commuting, running, cooking and chores — but it is also effective. Audio on our platform drives ad recall by over +150%.(4) And when audio is combined with video and display, it drives even more powerful results — boosting ad recall to over +200%.(5)
So, while Active Media is a step forward for both our video and audio formats, we are truly redefining and revolutionizing the audio ad format through Active Audio. The Active Audio product will push the limits of what audio creative can deliver.
This is especially important, given users’ ongoing shift away from screen time, to listen everywhere and anywhere. Our platform will offer an opportunity for marketers to create personalized and effective audio messaging to reach users in key screenless moments.
That’s why, to support the launch of Active Media in Australia, Spotify is also launching “Be Heard," a program which challenges Australia’s top creative agencies. The agencies we're partnering with include Cummins&Partners Sydney, Ogilvy Melbourne, and Isobar Sydney for clients Pernod Ricard, AAMI Insurance, and PayPal, respectively. Together, we will reimagine what an audio ad could be — and fully explore the storytelling power of audio advertising.
Stay tuned for more news on the program it progresses, along with learnings and best practices that we hope to share with the industry at large.
As the world’s leader in streaming music, the future has never looked brighter — as we look forward to delivering the best experience for our fans, artists, and brands alike.
*(1) First Party Data, Global, free users, based on daily content hours/daily active users
(2) Spotify Internal Data, 2018
(3) First Party Data, Global, free users
(4) LeanLab, Spotify Database Analytics, Q1 2017
(5) LeanLab, Spotify Database Analytics, Q1 2017 *