Leveraging Spotify's Advertising Tools: A Guide for Music Professionals

Standing out on streaming platforms has never been harder for artists. With Spotify's vast catalog of over 100 million tracks, effective promotion strategies are more important than ever. This article explores Spotify's key advertising tools and their potential impact on artist visibility and engagement.

Understanding the landscape & why you should use Spotify advertising

Before delving into advertising options, let's consider some key statistics:

• Spotify hosts over 100 million tracks and 5 million podcast titles

• The platform boasts 515 million monthly active users

• There are more than 8 million creators on Spotify

• Importantly, 75% of a release's first-year streams occur after the initial month

These numbers underscore both the opportunity and challenge present on the platform.

Spotify's Advertising Tools

Spotify offers three primary advertising tools for artists and labels:

1. Showcase

2. Marquee

3. Discovery Mode

Showcase

Showcase is a sponsored recommendation that appears as a mobile banner at the top of Spotify's Home page. Key features include:

• Applicable for new releases or catalog tracks

• Access to over 30 markets for global reach

• Targeting options include active audience, previously active audience, and potential audience

• Cost-per-click (CPC) pricing, starting at approximately $0.40 per click

• Minimum budget of $100

Spotify reports that users who see a Showcase are 6 times more likely to stream the promoted release.

Marquee

Marquee is a full-screen sponsored recommendation that appears on the mobile app. Notable aspects:

• Specifically designed for new releases

• Minimum budget of $100

• 10-day campaign duration (or until budget depletion)

• Cost-per-click pricing model (specific rate not disclosed)

According to Spotify, listeners who see a Marquee are twice as likely to save a track or add it to their personal playlist.

Discovery Mode

Discovery Mode, currently in beta, allows artists to flag specific tracks for increased algorithmic visibility. Key points:

• Influences recommendations in Spotify Mixes, Radio, and Autoplay

• No upfront cost; operates on a 30% commission of royalties generated from "Discovery Mode contexts"

• Access to 100 markets, offering extensive global reach

Spotify reports that artists using Discovery Mode see average increases of:

• 50% in saves

• 44% in playlist adds

• 37% in followers (within the first month)

The Importance of Spotify Advertising

With over 100,000 tracks uploaded to Spotify daily, advertising has become a necessity rather than a luxury. Consider these factors:

1. Visibility: Advertising helps cut through the noise in an oversaturated market.

2. Sustained Momentum: Given that 75% of first-year streams occur after the first month, maintaining visibility is crucial.

3. Audience Growth: These tools not only boost streams but also help in building a lasting fanbase.
   

4. Global Reach: Advertising tools, especially Discovery Mode, offer access to international markets.

Wayward Publishing’s Approach to Spotify Advertising

At our organization, we recently experimented with a unique strategy for an artist's release:

• The new EP "Florida Daydream Euphoric Horizon Side A" achieved 14,000 organic streams in its first two weeks.

• Instead of promoting the new tracks, we utilized Discovery Mode for six older songs from the artist's catalog.

• This approach aimed to boost the entire library while promoting the new release through social media channels.

This strategy allows for maximizing royalties on the new release while potentially growing the audience across the artist's entire discography.

Instead of promoting the new tracks, we utilized Discovery Mode for six older songs from the artist's catalog.

This strategy aimed to boost the entire library while promoting the new release through social media channels.

Results:

• Listener Growth: We observed a substantial listener lift of 646%, resulting in 1,593 new listeners.

• Stream Increase: The campaign led to a 538% increase in streams for the selected tracks.

• Short-term vs. Long-term Engagement: While the immediate results were impressive, long-term engagement metrics were less pronounced.

• Intent Rate: We recorded an intent rate of 0.3%. (Intent rate measures longer-term engagement, such as playlist adds and library saves.)

Analysis:

The experiment with Discovery Mode yielded mixed results. On one hand, it dramatically increased short-term listener numbers and streams. This suggests that Discovery Mode can be an effective tool for expanding an artist's reach and introducing their music to new audiences.

However, the low intent rate of 0.3% indicates that while many new listeners were exposed to the music, relatively few engaged with it in ways that suggest long-term interest (such as adding tracks to playlists or saving them to their library). This highlights a potential limitation of Discovery Mode - while it can boost visibility, it may not necessarily translate to sustained listener engagement.

Conclusion

In the competitive Spotify ecosystem, strategic use of advertising tools can significantly impact an artist's visibility and success. Whether you're promoting a new release or aiming to resurface catalog tracks, Spotify's suite of advertising options offers valuable opportunities for audience growth and engagement.

As the digital music landscape continues to evolve, staying informed about these tools and implementing them effectively will be crucial for music industry professionals aiming to maximize their artists' potential on the platform.