Spotify rolls out playlist ad targeting

James McGrath
By James McGrath | 17 April 2015

Brands will now be able to target consumers based on the kind of music they are listening to on Spotify, as the music streaming player rolls out a suite of playlist targeting measures in Australia set to allow brands to tap into “billions” of playlists.

Due to be available on 1 May, brands will be able to serve ads to particular audience segments based on demographic information, what they're listening to, and when and how they're listening to Spotify, using first-party data to do so.

According to Spotify, brands will be able to target users based on the type of music in their playlist within certain genres including workout, party, relax, travel, or "ethereal romance".

It will also allow brands to retarget users based on previous engagement or exposure across all Spotify app platforms.

News of the increased targeting capabilities comes as users turn away from ad-supported models and flow into subscription services.

The International Federation Phonographic Industries (IFPI) shows that there has been a 38% rise in those using ad-supported streaming sites such as Spotify and Guvera. 

However, in what will prove an interesting dynamic for the advertising industry, the number of paying subscribers – those opting to listen to music without ads - worldwide increased by 46.4% in 2014 and now stands at an estimated 41 million, a five fold-increase in the last four years.

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