Spotify Ad Studio: what it is and how it works

Have you ever listened to an advert while enjoying track after track on Spotify? At this point we could say that this question is almost a rhetorical question. Every living being with a Spotify account has had to swallow one of these "short breaks" as the platform itself calls them. 

The democratisation of Spotify's audience is now a reality as Spotify Ad Studio, Spotify's self-serve ad platform, is now available in this country and allows us to advertise in a simple and... effective way? Let's see it!

What is Spotify Ad Studio?

Spotify Ad Studio is a tool offered by the Spotify streaming music service to make advertising easy. We can create ads from scratch on the platform itself and with a smaller budget than we would use, for example, in a radio spot.

In addition, on this occasion we must highlight the beloved and hated nemesis of every community manager: the algorithm. Because, effectively, Spotify also has an algorithm by which it shows its users the music and playlists that it believes best suits them. This implies a collection of data about your audience that can be of great use to us when segmenting our ads.

On the other hand, at the end of 2020 Spotify had more than 345 million active users in 92 markets, of which 155 million were Spotify Premium subscribers, and 71% of users of the free version of Spotify are under 35 years old. The result is powerful reach and visibility for any brand or advertiser.

How Spotify Ad Studio works

In Ad Studio we can create ads with a maximum duration of 30 seconds and a minimum budget of 250 euros that are placed between the plays of a music playlist or a podcast. As with other tools such as Pinterest Ads or Instagram Ads, ads can be easily designed from the platform's own tool. Shall we get started?

As always, and before we get down to the nitty-gritty and start programming ads, we must first think about what we want to communicate, how and to whom, in order to develop an appropriate action and then be able to measure the results of our marketing strategy. 

Creating ads in both audio and video formats increases brand recall by 90%, according to Spotify's data, and generates 2.2 times more brand awareness, so it is interesting to advertise in both and not just one of them.

Ad Studio allows you to customise your ads and include song snippets, customised copy, a voice-over selector and different targeting parameters (such as music styles, location or demographics) to fine-tune your ads and target the people you are most interested in. Depending on the selected targeting and demand, the ad will be worth more or less, because there is a cost per ad delivered. 

There are two ways to create ads on Spotify. The first is by using the Ad Studio tool and uploading the audio and video clips directly to the platform from our account, on our own. The second is with the help of Spotify, who will only need us to send them a script, and they will voice and produce the ad within 24 hours, free of charge. 

Throughout the campaign, the ads can be edited and modified from the platform at any time, both in the audio clip and in the music and the final mix of both, adjusting various parameters from the Ad Studio tool.

What types of ads can we make on Spotify

Audio ads

This format, the most common and well known, is played between tracks to avoid distractions and may include a link to visit a website or application.

Video ads

This format presents us with two options:  

• Video Takeover, which is only shown during a listening session when the user is actively browsing the catalogue to discover music and podcasts. It includes a companion banner with a customisable call to action to encourage interactions. 
• Sponsored Sessions, a video that offers 30 minutes of uninterrupted music after viewing, which requires the user to look at the screen.

Personalised Experiences 

In addition to audio and video ads, Spotify offers the ability to run personalised ads with the help of its advertising department.

How to use Spotify Ad Studio correctly

Let's start with what is the most used type of ad on Spotify, the audio ad. The first thing we need is a script with a storytelling that engages our audience. Think that the ad will be between 15 and 30 seconds long, so you have to keep the listener's attention during that time. For a Spotify ad campaign to be effective it is essential to keep the following key points in mind: 

• Don't get bogged down with the message. Use the first few seconds to introduce your company and focus the information on what you want the user to retain by being concise and clear.
• Use music that complements your message and does not obscure it. It's about engaging your audience so choose music that interests them. If you're going to include your advert in the trap and chart charts, it doesn't make sense to use classical music for the advert.
• Don't use too many voices that might confuse the listener and keep a steady beat and tone. Between 55 and 70 words is ideal for a 30-second audio.
• Keep it consistent throughout. 
• Avoid annoying sound effects.
• Include a call to action at the end of the ad to increase the CTR. With it, this figure is multiplied by up to three compared to ads that do not include it. 

In addition to the audio, we will have to include an image that will be as important as the audio itself. Think that it will be seen in many cases from the mobile, so simplify it and make it attractive without adding too much information in it that ends up getting lost.

In the case of video ads for Spotify, one of its advantages is that since it is a music platform, your audience will always have the audio on, something that does not happen with Instagram ads, for example. That's why one of the essential requirements for your video ad to be approved is that it is not a silent video.

They should be no longer than 30 seconds, just like audio ads, and it's much better to have a call to action, as in all video ads we have to provide a destination URL, so there's nothing better than telling the listener what you want them to do with your ad: click. 

Targeting in Spotify Ad Studio, for both audio and video ads, allows you to reach users on different devices and at different times. There are different types of targeting:

• Demographics, which filters by age, gender and location.
• Devices and connectivity, to launch your ad when listeners are driving in the car, playing Spotify on their mobile or using a smart speaker, for example. It is also possible to target by time slot and have your advert shown at specific times.
• Listening habits, for example, allows you to play the ad only when they are listening to female artists, with different playlist categories or with sub-genres of both music and podcasts. 
• Predicted interests or lookalike targeting, which leverages Streaming Intelligence to reach the audience based on Spotify's predictions of listener interests. 
• Off-platform behaviour.
• Past interactions, which analyses audience behaviour with other ads. 

Companies such as Cabify, McDonalds and Nocilla have already opted for this type of advertising on the world's largest music streaming platform, and the results have been more than satisfactory. But it is not only practical for large multinationals. Small companies can benefit from the simplicity of the platform, which is really intuitive, and with a good script they can achieve great results. And if you don't know what to say or how to say it, we can help you.