What role does music play in your life? Do you find that it fuels your creativity, can affect your mood, and enable you to recall memories? Do you listen to music at work, in your free time, while waking up, or while exercising? Well, you are not alone, and as a marketer, your target audience consumes music content too.
In the past, traditional radio offered consumers few listening choices, which meant listeners were neatly organized into large listening audiences. For marketers, this was ideal. Within this “one to many” model, a single advertising message would reach the entire listening audience at once.
Today, with mobile phones and music apps, consumers are now in control of what they listen to and where and when they listen to it. This means audiences are no longer grouped into large listening buckets. As both a consumer and a marketer, Spotify is one of my favorite music apps.
The Spotify Audio Experience
With Spotify, you can access millions of songs, play your favorite music, discover new tracks, and build the perfect collection. Unlike traditional radio’s one to many model where everyone hears the advertisement at the same time, online audio, like Spotify, is a one to one conversation. You can target and message to individuals based on your targeting criteria.
Spotify is Programmatic
Spotify is unique because it can be purchased through programmatic buying tools and coordinated with your other online marketing for maximum results.
Programmatic advertising offers the ability to use advanced technology to target audiences wherever they aggregate online, with marketing messages and the ability to measure results across channels and devices. With measurement comes the ability to optimize and improve performance and results.
Through programmatic buying, you don’t have to speak to anyone directly at Spotify. Programmatic allows you to use software to purchase, manage, and measure the effectiveness of your Spotify campaign in real time.
Three Steps to Maximize Your Spotify Investment
1. Fill Your Funnel
A prospecting tactic, like Spotify, will sit at the top of the funnel. The goals of this tactic are awareness, consideration, and driving site visitation. You want your strategy to be a full funnel approach. A full-funnel approach recognizes that a single marketing message has little impact on a consumer’s behavior. To truly be effective in online advertising, you want to plan how you will coordinate advertising at the three stages of the funnel. The top of the funnel is for prospecting to new customers. The middle of the funnel is for nurturing, persuading, educating, and informing. The lower part of the funnel is for closing the sale.
Target on Spotify based on the following:
- Who they are (age, gender, geography, and language)
- What they’re listening to (playlist & genre)
- When and how they are listening (by daypart and device)
- Layer in retargeting and sequential messaging
2. Measure What Matters
Spotify is digital, and this means it can be measured, however, the measurement strategy you choose will determine your results. You want to start by measuring what matters the most to you. Is it applications, ticket sales, or form fills? What additional information would you like to know – revenue, StudentID, orderID, venue, or donation amount?
Today, the most effective way to measure online advertising is through a measurement tool called an Ad Server. An Ad Server enables you to break down the silos of your online advertising like display, Facebook, video, native, mobile, search, and Spotify for deep and granular insights at the customer level. The most advanced is DoubleClick Campaign Manager by Google. Google calls their Ad Server an “accounting tool” because it enables marketers to understand what works and what does not work at an individual customer level. In online advertising, you cannot manage what you cannot measure. For this very reason, Google estimates that utilizing a unified view of consumer’s advertising engagement results in a 30% reduction in acquisition cost. Use an Ad Server to measure and manage.
Measuring what matters means choosing the right measurement strategy. With any online advertising tactic, except search, you do not want to focus exclusively on clicks. It’s important to recognize that not all clicks are intentional and clicks do not include all consumer response behavior. Within small mobile devices, consumers can inadvertently click giving a false impression of intent. Clicks also represent a small segment of behavior. Focusing on the 1% of clicks and ignoring the impact of the 99% who hear Spotify audio ads, see the banner ads, and then come to your site through search can mean that you are ignoring your most valuable data.
Be cautious when measuring with Google Analytics (GA). GA is ideal for measuring customers’ engagement with your website, but can be a poor (and often deceptive) solution for measuring online advertising. The reason is that GA measurement is from clicks. Inadvertent clicks increase bounce rates making advertising look ineffective. Utilize your Ad Server data to measure the target audience’s engagement with your advertising before they visit your site combined with your GA data. The Ad Server will give your GA data the context you need to interpret the data.
3. Think Mobile AND Cross Device
Whatever your goal may be when targeting consumers on mobile devices, it is critical to understand that the outcome is unlikely to occur on the mobile device where the message was originally delivered. Want the listener to complete an application, buy tickets to a show, or make a donation? Whichever it is, most mobile devices are too small to complete these tasks. This will occur later on a different device, such as a desktop, tablet, or laptop. Use cross-device measurement to see that your mobile campaigns are responsible for driving these desired conversions or purchases that occur at a later date and on a different device.
Here is Path to Conversion data from the Ad Server showing how audio drives a target audience to the website for the purchase. Numbers 522-526 are all unique ticket purchases that began with internet radio. You can see how other media played a role in nurturing and closing the sale.
Adding Spotify to your media mix is an ideal way for marketers to reach top of funnel prospects, measure the results, and use that data to make informed optimization decisions.