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September 26, 2014 Wouter de Bie Big Data Architect @xinit / [email protected] Big Data for fast product iterations to drive user growth

How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

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How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify during Social Media Week Rotterdam 26-09-2014 In this talk Wouter de Bie looks at how Spotify uses data and Big Data technologies to make fast iterations on the Spotify product. Some of the questions he’ll try to answer are ”Why is fast product iteration important for us?”, ”How does data tie into this?” and ”What is it we do to achieve this”?

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Page 1: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

September 26, 2014

Wouter de Bie Big Data Architect @xinit / [email protected]

Big Data for fast product iterations to drive user growth

Page 2: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

Big Data for fast product iterations to drive user

growth

September 26, 2014

Page 3: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

Big Data for fast product iterations to drive user

growth

September 26, 2014

Page 4: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

Big Data for fast product iterations to drive user

growth

September 26, 2014

Page 5: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

Big Data •  40 million Monthly Active Users •  20+ million tracks •  57 countries •  2 TB of compressed data from users per day •  70 TB of data generated in Hadoop each day •  700 node Hadoop cluster •  28 PB of storage •  8500 – 12.000 jobs per day

September 26, 2014

Page 6: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

Big Data for fast product iterations to drive user

growth

September 26, 2014

Page 7: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

•  We were the first ones to do free streaming •  Not any longer..

•  We need to build the best product •  But nobody has done this before.. What does best mean?

Why fast iteration?

Page 8: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

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How do we develop our product?

Think it Build it Ship it Tweak it

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September 26, 2014

Tweak it

Think it

Build it

Ship it

Understand consumers, behavior, opportunities, what to test

Build prototypes, ensure right metrics / tracking is in place

Understand what works, measure, evaluate, learn, optimize

Manage roll out, evaluate test groups, understand problems

Support with data and analytics

Page 10: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

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A/B testing •  Select a test group of (< all) users

•  Select a control group (e.g. all

remaining users)

•  Let the test group try a new version

of a feature

•  Gather metrics about the test and

control group

•  Compare the groups and roll out the

new feature if the test group

performs better

Page 11: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

What did we find?

Page 12: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

Ad frequency

Song   Song   Ads   Song   Song  Song   Song   Song   Song  

Song   Song   Ad   Song   Song  Song   Song   Song  Ad   Ad   Song  

VS

Page 13: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

Result: no difference

Page 14: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

Personalized email subjects

Page 15: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

Result: 200% higher CTR

Page 16: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

Radio

Page 17: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

Result: Constantly improving radio experience

Page 18: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

Sign-up flow

Signup button

Page 19: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

Group B - test

Group A - control

Performance

Time

Download

Okay, listen to music

A - control 50% of users

B - test 50% of users

100% of users

Massive boost: ca 3x!

Layout of signup -button

Page 20: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

Result: 3x more sign-ups!

Page 21: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

“This signup-flow will kill it!”

•  Auto play music •  Great cover art •  Clear download instructions

•  Screenshot in the background

Page 22: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

Result

Page 23: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

Some history..

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And not only for ourselves..

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Page 31: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

Jay-Z

Page 32: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

Artist analytics

Page 33: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

Artist analytics

Page 34: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

Artist analytics

Page 35: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

Some words of wisdom..

September 26, 2014

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Only 10% will lead to a change – Google after 12.000 tests

It’s a numbers game

Page 37: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

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“80% of the times, we are wrong about what consumers want”

Leverage your data!

Page 38: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

38 Section name

You’re the expert, but prepare for the truth

Page 39: How Spotify Uses Big Data For Fast Product Iterations | Wouter de Bie - Spotify

Thank you!

September 26, 2014