Spotify lets brands in on the weekly playlist
Streaming music market leader Spotify is experimenting with a new way to put brands in front of listeners. The company curates a ‘Discover Weekly’ playlist for each user – it’s a popular feature that helps to put Spotify out ahead of its competitors, bringing incredible personalisation to audience’s new music discoveries. Now, Spotify plans to let brands piggyback on its popularity with the insertion of a new ad format, which will bring audio and video ads to breaks between songs in the playlist.
Spotify’s share price has risen by more than 10% over the last eleven days!
Source: Yahoo Finance
Daniel Lee, global head of partner solutions at Spotify, explained the appeal of the Discovery Weekly playlist to big brands: “Personalization has quickly gone from a nice-to-have to an expected consumer experience that delights audiences, and marketers are craving opportunities to be part of it. Our new Discover Weekly ad experience positions advertisers for success and ensures that our fans are hearing messages that embody the ethos of discovery.”
This isn’t the first time that Spotify has let brands sponsor playlists, but it’s kept Discovery Weekly free of advertising thus far. Opening the door to brands here will give them an in with Spotify’s most engaged users. And the first brand to take the plunge is none other than Microsoft, which will be running a campaign promoting its artificial intelligence (AI) capabilities, called “Empowering Us All.”
Speaking about the collaboration, Erin Bevington, Microsoft’s general manager of global media, made the following statement: “At Microsoft, we are focused on empowering every individual and organization to do more. Our work in AI is a central part of that mission to unlock human ingenuity. Our partnership with a technology innovator like Spotify offered a way for us to effectively share that message within a personalized entertainment experience powered by AI.”
Dominion holds Spotify in its Global Trends Luxury Fund.
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