Spotify has recently launched a new avenue to attract more cash from advertisers – and it’s got some attractive numbers with which to lure them in.
The Swedish company has announced that it has started selling overt sponsorship on its own playlists – which, as MBW readers will know, are now responsible for a billion streams every week.
Spotify has 400+ owned playlists to sell to advertisers, the most attractive (and pricey) of which will be the likes of Rap Caviar (3m followers) and Today’s Top Hits (8m followers).
Car manufacturer Kia was the guinea pig, sponsoring the New Music Friday playlist (8m+ followers) a few weeks ago to introduce its new Kia Sportage.
“So far, the results have been outstanding, both in terms of audience engagement and brand impact,” said a Spotify blog post.
Other beta period US sponsorship partners have included McDonald’s and Target.
Sponsorship of Spotify playlists has launched in the US, with a similar setup now in beta in the UK.
Brands can adorn the playlists for a week at a time, during which they get their logo displayed plus the ability to control 100% of display ads served around the product.
Sponsors also get to control the first ‘commercial break’ of the playlists for free listeners.
It remains to be seen if Spotify will also sell branding space on Discover Weekly: the playlist which serves up a personalised selection of songs to users each week, and which has 40m listeners and just reached 5bn lifetime plays.
H/T : MusicBusinessWorldwide