Spotify Rolls Out Video Ads on Ad Studio

digital, digital advertising,self-serve platform,US,UK,Canada,,spotify,video ads, video advertising, audio advertising, ad studio,

Key Insights:

  • The Ad studio debuted in 2017 and thereafter Spotify has nearly doubled its user base.
  • Spotify witnessed an 11% rise globally in mobile downloads.
  • Spotify reports an average of 25% of overall ad revenue from video accounts.
  • In the past one year, Spotify has witnessed a 68% increase of active advertisers, with double the ads running.

 

Spotify has announced video advertising on Ad studio, its self-serve platform, in Canada, the U.K, and the U.S. This update is available to select advertisers in the recently added test markets to Ad Studio in April.

The Ad Studio was created initially for small and medium-sized advertisers to connect with Spotify listeners and create budget-friendly, customized audio ads for the platform. In April, it had expanded to 18 more markets and exited the beta version.

Spotify Push into Video Ads can increase brand awareness and brand recall. 

Spotify said that often users on other platforms prefer viewing video ads muted, however, Spotify listeners are’ engaging with their sounds on.’ Complimenting their audio ad offering, video ads will give brands a visual storytelling opportunity for the in-focus moments.

The streaming giant further notes that running video ads with audio produces higher brand results than going solely for video ads. Video ads with sound-on lead to 1.9x ad recall and 2.2x increase in brand awareness, according to the company data.

 The company said in a statement,

“Unlike many other platforms, on Spotify, listeners are already engaging with their sound on, offering a valuable opportunity for a brand’s message to be seen and heard. This multisensory experience can extend a brand’s audio ad strategy, providing another touchpoint to capture listeners’ attention and share messages across all relevant moments.”

Rise in advertisers using Spotify Ad Studio’s creative perk 

Ad studio that is available in 22 countries globally has leveled up the playing field in creative production by offering a free service to generate a brand’s ad spot. Advertiser on Spotify’s Ad Studio can upload a script and in as little as one hour (48 hours in some cases) they will deliver a fully produced ad that includes music and voice over.

The company said that 37% of Ad Studio customers rely on their free voiceover tool for ad creation. Additionally, 50% of its advertisers used this tool in May, which is an 11% rise from March. 

Ad Studio offers two options of ad format for video ads- horizontal video and vertical video. Horizontal video can run across all platforms and vertical video is optimized for iOS and Android.

digital, digital advertising,self-serve platform,US,UK,Canada,,spotify,video ads, video advertising, audio advertising, ad studio,

Image Credit: Adweek

digital, digital advertising,self-serve platform,US,UK,Canada,,spotify,video ads, video advertising, audio advertising, ad studio,

Image Credit: Adweek

Why should brands advertise on Spotify?

The company reported recently that it has 286 million active users and 130 million paid subscribers. Spotify is the third-largest advertiser in the world after Facebook and Google.

Spotify  Ad Studio enables brands to reach targeted and relevant customers. Their programmatic audio advertising is the best way to reach Gen X and beyond.

If you think ads may annoy the listeners of Spotify, think again. Statistics by Acquisio states, 75% of digital audio listeners think commercials are totally fine on a free streaming service. 47% think ads are even less intrusive on Spotify than traditional radio.

For instance, brands targeting the hip audience that are interested in current trends can consider advertising on Spotify. Advertisers can take advantage of the Spotify data of logged users like moods, preferences, listening habits, interests, and activities. This will help brands to create customized ads.

Learn more: Spotify Adds $1.7B To Market Cap In 23 Min Post A Deal With Joe Rogan, World’s Leading Podcaster.

Neha
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