Spotify adds Nielsen Brand Effect to give advertisers confidence
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Spotify adds Nielsen Brand Effect to give advertisers confidence

Earlier this week, market-leading music streaming platform Spotify announced a welcome addition to its offerings: Nielsen Brand Effects. This might not thrill listeners, but when it comes to advertisers, it’s a major win. Spotify already provides a “third-party verification suite” to reassure advertisers that its ad space really does drive sales – but the new Nielsen service is one that ad men have been requesting specifically. Its addition should go a long way to shoring up what is a crucial part of Spotify’s business.

Spotify’s share price has risen by 23% year to date

graph 1309 spotify

SOURCE: Yahoo Finance

It wasn’t always this way. Once, advertisers were easily wooed by Spotify’s claims of a “big” and “unique” audience. However, as the company matures and other players compete for music streamers, marketers are demanding more data with which to measure the effectiveness of their spending. According to the company, the whole ad space has become less trusting over the past few years – meaning additional verification services are an attractive proposition.

Brian Benedik, Spotify’s global head of advertising, says: “When I started in 2013, our pitch to brands was ‘Hey, we’re cool and sexy, align with Spotify,’ but the industry has changed so much in the last five years. That’s not good enough anymore. Proving lift, awareness and intent: Those were nice to have a few years ago, but now the industry is demanding it. Erosion of trust and questioning brand safety has really driven the need for all publishers and platforms to provide third-party verification. Our work is very much in response to what brands are demanding.”

With 101 million users listening to the ad-supported version of Spotify, brands have a significantly sized audience to appeal to. Music streaming platforms also offer access to particular demographics, like young, tech-savvy, people – and research shows that you can tell a lot about a person’s preferences based on his or her music taste. Altogether, that makes Spotify an appealing platform for the right brands.

Benedik, however, says this is just the beginning. With the addition of more third-party verification tools, and the platform’s continual evolution, the future could be even brighter: “It’s the journey to becoming a platform, not just a publisher. Today we work with thousands of brands, but we envision a future where we’re working with hundreds of thousands of brands, and the only way to get there is to provide efficiency to the business.”


Dominion holds Spotify in its Global Trends Luxury Fund.

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