Home Digital Marketing Spotify Marketing Strategy: It’s More Than a Plan

Spotify Marketing Strategy: It’s More Than a Plan

by Tarun Pal
spotify marketing strategy

Music is not a thing. It is part of human life, motivation for tough times, and it decides and changes the way we think. But alongside this, music also is an excellent business from different perspectives, and music streaming is one of them.

So today, we will explore and explain the marketing strategy of the largest music streaming platform, Spotify, and cover some successful marketing campaigns by Spotify.

The Foundation of Spotify

Spotify is an online music streaming platform founded by Daniel Ek and Martin Lorentzon in April 2006. This platform has 468 million active users, including 195 million paying subscribers. The idea for launching Spotify was to deal with music piracy. Before music streaming platforms were unpopular, people used to download pirated music files, which was a problem for the music industry.

Spotify comprises two words, ‘spot’ and ‘identify‘. Daniel and Martin came up with random names for their streaming platforms, and Spotify, a word misspelt by Daniel, became its last name.

Over time, you can see people’s interest in Spotify on Google Trends. The data shows how the company is gaining popularity in the music industry from time to time.

Marketing Strategy of Spotify

Spotify’s marketing strategy isn’t static, but it is evolving. Spotify is not only following the movement marketing  but also creating new marketing trends to promote itself. So let us describe the marketing strategy of Spotify.

Target Audience of Spotify

Spotify’s target audience is between 18 – 34 years old groups (Young Adults – Millennials and Gen Z ), with its primary market established in the United States. Furthermore, Spotify is known to target students and business professionals as a platform because of their time spent listening to music online. Here’s a table that breaks down Spotify’s target audience:

Age18 – 34 Year Old
Gender Ratio58.95% Male & 41.05% Female
Top CountriesUS, Brazil, UK, Mexico and India
Total Markets180+
TypeMedia & Entertainment/Music Lovers

Videos Advertisement

Generally, video advertisements refer to ads we see on TV, YouTube, or similar platforms. And Spotify is one of the most creative companies in video advertising.

If you are from india then you will recognize this video: Traffic Ki Dhun.

The psychology of this video ad is this: Spotify isn’t trying to persuade you to download the app. It’s just playing with your inner feelings, like, when I was a kid, I used to do these kinds of things with lyrics. If you want to see more similar commercials of Spotify, you can visit the official channel on YouTube.

The Freemium Model That Attracts Users

Spotify runs a paid subscription model but also offers a free version. Users who opt for the free subscription receive advertisements between songs, a part of Spotify’s revenue stream.

The freemium business model allows users to listen to music freely, eliminating the need for piracy. By having a free version of its service, Spotify can increase its total user base and increase the number of word-of-mouth referrals. With more than half of its total users opting for the free version, these are individuals who not only contribute to Spotify’s revenue by listening to ads but are more likely to talk about the service to their friends and family. 

Furthermore, freemium products have been shown to convert 25% better than free trial models. With the free version of Spotify’s very limited capabilities, users are encouraged to upgrade to get higher quality music, offline playlists, and no ads. However, they can stay on the free version as long as they want.

Connecting With Artists for Collaborations

Music apps are just a medium to listen to your favorite singer; Spotify understood this thing earlier from other apps.

Indian artists on spotify

Dating Apps + Spotify

So, Spotify is closely tied with the top artists of almost every mainstream industry. It provides users with a way to connect to their top artists, which leads to open live nights, another lovely way to attract more subscribers taking the benefit of exclusive content!

Yes, you read that right. Suppose you are using dating apps like Bumble, Tinder, and Hinge. You can see the section showing your Spotify playlists. Have you ever wondered why people share their playlists on dating apps?

Because a playlist is not just a playlist, it is much more than that. It is a collection of your feelings and musical taste, and each of us likes to show feelings. So Shopify discovered this thing as an opportunity and tied it up with dating apps, and now it has become a necessity if you want to build a relationship with someone.

In Conclusion

I hope you understand the basic principles of the Spotify marketing strategy, and there are four things to learn from it.

  1. Putting emotions in its ads can also better transform your connection with the target audience and boost your reach internationally and locally.
  2. The Freemium model works incredibly for users as well as the platform. That is because the users get free music while listening to ads, which is a perfect two-way venture for a business.
  3. Strategic partnerships with artists, their labels, trending musicians, and podcasters are another way to keep things refreshed. 
  4. A more straightforward and smooth AI interface makes the experience more personalized and highly user-centric. 

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