Finally, our two favourite things are merging, music and video ads. Spotify announced an addition to their advertising product this week. Here’s all you need to know:
Spotify have a user base of about 40 million active users. 30 million are non-paying users and the remaining 10 million are Spotify premium users. Currently advertisers can choose from the following ad specs: Audio Ads, Display Ads, Billboard Ads, Homepage Takeovers, Branded Playlists, Lightbox and Advertiser Pages. Users spend an average of 146 minutes listening on Spotify everyday. In the last year, Spotify mobile users have tripled.
INCREASINGLY MOBILE
How will Spotify video ads work?
There will be two video ad units available to advertisers.
Sponsored sessions
This feature allows users to watch a video advertisement in exchange for 30 minutes of uninterrupted ‘ad-free’ music.
- Offer your audience uninterrupted listening in exchange for a video view
- Currently available on mobile only
- Users are served an offer for 30 minutes of ad-free listening via a title card
- User must complete 15 or 30 second video spot to receive reward
- All video impressions are user-initiated
- Only completed views are billed
- Branded end card invites further engagement
Video takeover
This is similar to the current Spotify advertisements in that it will interrupt the listening experience and play the video ad as opposed to the existing audio offering.
- 15 or 30 second video spot with companion display unit
- Served during commercial ad breaks between songs in a music session
- Currently available on desktop only
- 100% share of voice
- 100% viewable: video only served if desktop app is in view
- Only completed views are billed
- Companion display unit invites further engagement
[youtube https://www.youtube.com/watch?v=z5yxijE3TuE]
Who are the advertisers?
Similar to Instagram, Spotify have selected a small number of brands to test the video ads. They include Coca-Cola, Ford, McDonalds, NBC Universal Pictures, Target and Wells Fargo. Most of these brands are already advertising with Spotify.
When?
The new video ads will only be available in the following markets in Q4 on this year: United States, United Kingdom, Germany, France, Spain and Sweden. They will be available globally in 2015.
