Audio is an essential part of a brand advertising mix. However, as radio listening behaviours fragment, brands are tapping into streaming platforms to reach and engage audiences.
Spotify has 615 million monthly active users. Around 1 in 3 users pay for an ad-free experience, making the platform an interesting space to trial and test targeted content to a wide, global audience.
One of the main benefits of Spotify ads is the ability to target specific audiences based on their listening habits and demographics. Allowing businesses to tailor messaging to reach the most relevant and interested consumers.
The platform is also recognised as having the most diverse target audience with a 58% to 42% split between males and females, aged between 18 and 35.
In 2015, Spotify introduced podcasts to the app. Today, there are 6 million podcasts available and Spotify has reported that 1 in 4 of its users are choosing to only listen to podcasts via the platform.
The platform now allows specific targeting to allow advertisers to target specific podcasts, instead of solely based on genres.
The model is working for Spotify, who reported record earnings for Q2 2024, hitting £230m for the quarter.