Brand History: 

● Spotify was founded in 2006 in Stockholm, Sweden, by Martin Lorentzon and current CEO Daniel Ek. Their motivation for Spotify was to create a “legal digital music platform” where people could listen to music for little to no cost (Iqbal, 2019).  

● Spotify officially launched in October 2008 to immediate success, in part due to its partnership with Facebook upon launching (Iqbal, 2019).  

● Spotify went public in April 2018 (Witt, 2018). 

Spotify Today:  

● “Freemium” business model - original service available for free, premium version available for $9.99/month (“Comparison,” n.d.) 

● 113 million paid subscribers and 248 million active users (“Company info,” 2019). ● Spotify has 36% of the global streaming market (Iqbal, 2019). ● Spotify offers over 50 million+ tracks and 500,000+ podcasts (“Company info,” 2019). ● Spotify is available in 79 markets (“Company info,” 2019). 

Spotify’s 5 core values:

Whatley, 2016

“Company info,” 2019

Brand Analysis

Company Analysis

Spotify is a music, podcasts, and video-streaming service available on phones, computers,

tablets, and other digital devices (“Spotify,” 2019). The streaming service’s content is made possible

through licensing agreements with record labels and media companies, and also includes exclusive

Spotify-produced content (“Company info,” 2019; “Spotify: Most innovative,” 2019). As of

September 2019, Spotify has over 113 million subscribers and 248 million active monthly listeners

(“Company info,” 2019).

In April 2018, the company went public and grew to be worth about $25 billion, making it the

largest music company in the world (Witt, 2018). Spotify is available in 79 markets across the world,

with the U.S. headquarters located in New York, NY (“Company info,” 2019).

Spotify is known for popularizing the “freemium” model, where the original product is free but

one can use a “premium” version for a paid subscription (“Spotify: Most innovative,” 2019). In 2015,

Spotify started offering podcasts on their platform (Titlow, 2015). Its podcast audience has doubled

since the beginning of 2019, making Spotify the second most popular place to listen to podcasts

(“Spotify for Podcasters,” 2019).

Product Analysis

Spotify offers users two options: free and premium. The free version is what users get when

first signing up for Spotify, while the premium version is $9.99/month (“Comparison,” n.d.). Spotify

also offers a student premium option at $4.99/month that comes as a package deal with Hulu and

Showtime (“Spotify Premium for Student,” 2019). All premium options come with a free three-month

trial, formerly one month (“Spotify Premium,” 2019).

1

The biggest difference between the two is the way each works. Spotify Free includes

advertisements after every few tracks that interrupt the listening experience. The free version also does

not allow access to all songs available on Spotify. One can still listen on both the app and a computer,

but the mobile app only allows for shuffle mode or pre-made playlists, not allowing free users to select

a particular song to play (“Comparison,” n.d.). Listeners are also only permitted a certain number of

skips within a certain time frame.

Spotify Premium removes all advertisements to allow for uninterrupted music (“Premium,”

2019). Premium subscribers also receive unlimited skips, can select particular songs on both mobile

and desktop, and have offline listening (“Premium,” 2019). Spotify Premium subscribers can

download up to 3,333 songs on up to three devices for offline use (“Comparison,” n.d.).

Another difference between the two versions is the sound quality. Spotify Free play at 96kbps

on mobile and 160 kbps for desktop, while Spotify Premium users get 320 kbps on desktop and on

mobile (“Comparison,” n.d.).

With podcasts, users can stream or download their favorite audio shows on any device. Spotify

also enables podcast creators to get to know their audience by providing statistics of who is listening

and which episodes have been streamed the most. Since Spotify is also a music streaming service,

podcasters are able to see what type of music their listeners are into (“Spotify for Podcasters,” 2019).

Public Image & Identity

Spotify’s five core values - innovative, collaborative, sincere, passionate, and playful - as well

as their mission statement, reflect the public image they work to put out (Whatley, 2016). Spotify

views itself as an innovative, sincere company that is dedicated to fair and transparent work,

collaboration, and helping artists and podcasters share their creations.

2

However, Spotify has come under criticism in recent years by musicians and songwriters -

often the primary copyright holders - in regards to royalties. According to Kabir Sehgal, the average

price per stream is $0.006 to $0.0084, paid to a track’s copyright holders (2018). There are usually

multiple copyright holders, with the rights “split among the record label, producers, artists, and

songwriters” (Sehgal, 2018). That means for around 1 million streams on Spotify, the copyright

holder(s) only receives around $7,000 that is then split among multiple individuals (Sehgal, 2018).

In 2018, Spotify was engaged in a lawsuit with Wixen, a California company that collects

royalties for numerous musicians including Neil Young, Stevie Nicks, and Janis Jolin, over unpaid

royalties for up to $1.6 billion (Beaumont-Thomas & Rushe, 2018). This was not the first lawsuit

Spotify faced over improperly paid royalties, either.

Consumer Analysis

Around 46 percent, or 113 million, of Spotify’s 248 MAUs are Spotify Premium subscribers

(“Company Info,” 2019; Iqbal, 2019). The following charts provide demographic breakdowns of

Spotify’s MAUs by age, gender, and region. Millennials are a primary consumer of Spotify, making

up a solid quarter of all Spotify users; the second largest age group is young adults aged 18-24. 47.7

million MAUs on Spotify are in the U.S. (Singh, 2019).

3

Target Audience

Spotify focuses the majority of its marketing efforts on millennials (Mortensen, 2018). But

while Spotify’s podcast audience has doubled since the start of 2019, only 14% of Spotify’s MAUs

currently listen to podcasts on the platform (De Silva, 2019).

Competitor Analysis

There are many competitors in the music streaming industry. Having so many options can lead

to weak brand loyalty, as there is a lack of differentiation between the various music streaming

platforms (“Online Music Streaming,” 2019). The main competitors that are able to differ from

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Spotify, and thus the greatest threats to Spotify’s success, are the large multinational corporations,

such as Alphabet Inc., the company behind Google Play, and Apple (“Online Music Streaming,”

2019). These two companies have a significant amount of money to spend on advertising and

production and can expand in the industry with relative ease (“Online Music Streaming,” 2019).

Apple Music, Spotify’s biggest competitor, was on track as of February 2019 to become the

most popular streaming service in the U.S., in part because of the high number of users who signed up

for the three-month free trial period and therefore carried on their subscription to the service (“Online

Music Streaming,” 2019). Spotify switched from a 30-day trial period to three months in August 2019

to stay in competition with Apple Music (Torbet, 2019). Despite Apple’s predicted lead, Spotify

remains the leader in streaming services.

Apple, like many other streaming services, is venturing deeper into the podcast arena, funding

originals exclusive to Apple Music (Shaw & German, 2019). Pandora, however, is Spotify's leading

competitor when it comes to music streaming (Slefo, 2019). Though Spotify has a large lead over the

number of users listening to podcasts, Pandora has been actively going after the podcasting audience

that Spotify is trying to capitalize on (Slefo, 2019).

Castbox is the leading program in podcast streaming, having won several “best of” awards

from Google and Apple since its introduction in 2016 and maintaining a dedicated audience (Winn,

2019; Slefo, 2019). One of its differentiating features is the transcriptions Castbox makes of every

show, allowing users to search key phrases and talking points throughout the apps catalog for podcasts

discussing the specifically searched topic (Slefo, 2019). The app is available on iOS, Android,

Amazon Echo, and Apple Watch & Carplay support (Winn, 2019).

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Advertising and Media Analysis

Spotify currently utilizes Universal McCann as its advertising agency for 2019 (“Spotify Brand

Profile,” 2019). The company has two ad campaigns currently running: the “Spotify Everywhere”

campaign and its sub-campaign, “For the Ride.” The “Spotify Everywhere” campaign is multi-faceted,

consisting of meme-inspired ads and “relatable moment” commercials aimed at millennials (Cirisano,

2019). “For the Ride” focuses on enjoying Spotify in the car; it primarily consists of billboards and

commercials (Cirisano, 2019; Zanger, 2019).

The table below shows Spotify’s past media mix. Their total ad spending for 2019’s first

quarter is $6,034,329 (“Spotify Brand Profile,” 2019).

Type 2017 2018 2019 Q1

Broadcast 27.82% 39.2% 1.23%

Digital 29.45% 24.56% 41.05%

Digital - Search 15.29% 6.93% 28.15%

Out of Home 23.98% 22.89% 12.82%

Print 3.44% 0.26% 2.23%

Radio 0.01% 6.16% 14.52%

Total 100% 100% 100%

(“Spotify Brand Profile,” 2019).

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SWOT Analysis

Strengths

● Spotify is available for use across many devices - iPhone, Android, TV, speakers, laptops, etc.

(Hill, 2018).

● The “Discover Weekly” playlist - updates every Monday morning; personalized to each user

based on their listening history (Hill, 2018).

● Smaller artists and podcasters are easily able to make their music available on Spotify (Hill,

2018).

● In August 2019, Spotify extended the free trial of its premium version from one to three

months (Salzman, 2019).

Weaknesses

● Spotify depends on other technology companies, such as Amazon and Apple which are also

their competitors, to deliver its services and enable people to utilize its programs (Garcia,

2019).

● In September, Spotify’s stock prices hit their lowest rate since December 2018 (“Spotify

Stock,” 2019). While these prices have risen somewhat, they still sit at “close to 52-week

lows” (Salzman, 2019).

● Spotify pays a very minimal rate per stream to copyright holders, or the artists and songwriters.

The pay rate is about $0.006-$0.0084 per stream (Iqbal, 2019).

● Spotify does not compensate podcasters per stream as they do with artists (Hu, 2019).

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Opportunity

● Spotify can partner with phone carriers and technology companies to collaborate on new

products and devices (Garcia, 2019).

● Spotify’s podcast selection includes podcasts on a variety of educational topics and

language-education podcasts. These can be utilized by adults in our target audience’s age range

to assist with college learning or general self-education (“9 Ways to Use Spotify,” 2019)

Threats

● Heightened competition from Amazon, Apple, and Google (Salzman, 2019). These

competitive giants all already have a global presence and “the potential to penetrate more

markets with their respective music streaming products (Garcia, 2019).”

● Lack of compensation for podcasters per stream can cause podcasters to use other platforms

(Hu, 2019).

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References

9 ways to use Spotify to ace your way back to school. (2019, September 6). Retrieved from

newsroom.spotify.com/2019-09-06/9-ways-to-use-spotify-to-ace-your-way-back-to-school/

About us. (2019). Retrieved from https://www.spotify.com/us/about-us/contact/.

Beaumont-Thomas, B., & Rushe, D. (2018, January 3). Spotify sued for $1.6bn in unpaid royalties as

it reportedly files for IPO. Retrieved from

www.theguardian.com/technology/2018/jan/03/spotify-sued-for-16bn-in-unpaid-royalties.

Cirisano, T. (2019 April 5). Spotify launches new meme-inspired global ad campaign. Retrieved from

billboard.com/articles/business/8509589/spotify-new-global-ad-campaign-inspired-by-memes

Company info. (2019). Retrieved from https://newsroom.spotify.com/company-info/.

Comparison: Spotify Free vs. Spotify Premium. (n.d.). Retrieved from

https://www.sidify.com/topic/comparison-spotify-free-vs-premium.html.

Garcia, P. (2019, April 12). Spotify SWOT analysis: Internal & external strategic factors. Retrieved

from https://www.rancord.org/spotify-swot-analysis-internal-external-strategic-factors.

Hill, R. J. (2018, November 28). Why Spotify is one of my favorite products. Retrieved from

medium.com/@RyanJosephHill/why-spotify-is-one-of-my-favorite-products-93fa4dff850a.

Hu, C. (2019, February 25). Why musicians are starting their own podcasts - and why the podcast

industry should pay attention. Retrieved from

bellocollective.com/why-musicians-are-starting-their-own-podcasts-and-why-the-podcast-ind

ustry-should-pay-attention-d7c5b5837d71.

Iqbal, M. (2019, May 10). Spotify usage and revenue statistics (2019). Retrieved from

https://www.businessofapps.com/data/spotify-statistics/.

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MarketLine. (2019, February). Industry profile: Online music streaming in the United States

Retrieved from

proxy-tu.researchport.umd.edu/login?ins=tu&url=http://search.ebscohost.com/login.aspx?dire

ct=true&db=bth&AN=135473642&site=ehost-live

Mortensen, J. (2018, March 8). Spotify target audience: Millennials. Retrieved from

https://somespotify.wordpress.com/2018/03/08/spotify-target-audience-millenials/.

The Podcast Consumer 2018. (2018, April 20). Retrieved from

https://www.edisonresearch.com/podcast-consumer-2018/.

Premium. (2019). Retrieved from https://www.spotify.com/us/premium/

Salzman, A. (2019, October 2). Spotify stock has dropped so much, two analysts ditched their sell

ratings. Retrieved from

www.barrons.com/articles/spotify-stock-has-dropped-so-much-two-analysts-ditched-their-sell

-ratings-51570031754.

Sehgal, K. (2018, January 26). Spotify and Apple Music should become record labels so musicians

can make a fair living. Retrieved from

cnbc.com/2018/01/26/how-spotify-apple-music-can-pay-musicians-more-commentary.html.

Shaw, L., & Gurman, M. (2019, July 16). Apple plans to bankroll original podcasts to fend off rivals.

Retrieved from

www.bloomberg.com/news/articles/2019-07-16/apple-plans-to-bankroll-original-podcasts-to-f

end-off-rivals.

Singh, P. (2019, September 12). Spotify statistics 2019-2020: What's the future of the media

streaming app by numbers. Retrieved from appinventiv.com/blog/spotify-statistics-facts/#A3.

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Slefo, G. (2019 January 23). Spotify and Pandora duke it out for podcasting prominence. Retrieved

from https://adage.com/article/tech/spotify-pandora-duke-podcasting-dominance/316311

Spotify again cribs from radio with 'For The Ride' campaign. (2019, August 29). Retrieved from

www.insideradio.com/free/spotify-again-cribs-from-radio-with-for-the-ride-campaign/article_

af210288-ca30-11e9-8cc3-339fb51d8e69.html.

Spotify for Podcasters. (2019). Retrieved from https://podcasters.spotify.com/.

Spotify: Most innovative company. (n.d.). Retrieved from www.fastcompany.com/company/spotify.

Spotify Premium for students. (2019). Retrieved from https://www.spotify.com/us/student/.

Spotify (SPOT) Stock NYSE. (2019, October 7). Retrieved from

https://markets.businessinsider.com/stocks/spot-stock.

Titlow, J. P. (2015, May 20). Spotify launches podcasts, video, and context-based listening. Retrieved

from fastcompany.com/3046504/spotify-launches-podcasts-video-and-context-based-listening

Torbet, G. (2019, August 22). Spotify triples its free Premium trial period to three months. Retrieved

from https://www.engadget.com/2019/08/22/spotify-premium-three-month-trial/.

Whatley, S. (2016, September 2). Spotify's core values. Retrieved from

hrblog.spotify.com/2016/09/02/spotifys-core-values/.

Witt, S. (2018, April 4). Spotify is, for now, the world's most valuable music company. Retrieved

From npr.org/sections/therecord/2018/04/04/599385111/spotify-is-for-now-the-worlds-most-

Valuable-music-company.

Winmo. (2019). Spotify: Brand profile. Retrieved from

https://my.winmo.com/hubignite/brand_profile/68170

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Winn, R. (2019, May 11). Best podcast listening apps (for iOS & Android) 2019. Retrieved from

https://www.podcastinsights.com/best-podcast-apps/#Castbox.

Zanger, D. (2019 August 26). Spotify’s new ad celebrates the relatable habit of staying in the car to

finish a song. Retrieved from

www.adweek.com/brand-marketing/spotifys-new-ad-celebrates-the-relatable-habit-of-staying-i

n-the-car-to-finish-a-song/

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Spotify Brand Voice & Tone Guide 

Voice: Everything that comes out of Spotify should uphold the company’s mission to unlock and enhance

creativity by providing opportunities for artists to create and fans to enjoy, as well as the five core

values of Spotify. Our copy should aim to tell people that we are:

Innovative. Spotify was one of the first legal music streaming platforms - innovation is at the root

of who we are. We aim to be original and creative in all aspects. Innovation is our default mindset, and

we are constantly working to improve and go further.

Collaborative. We believe that collaboration is the best way to get things done. Working with

others makes for better results and experiences. The better we collaborate, the more effective we are!

Sincere. We understand that the best and strongest relationships are built on mutual respect and trust,

which is why Spotify aims to be fair and transparent in all actions.

Passionate. We are proud of what we have done, what is to come, and what we can continue to do.

We are bold and willing to take risks, even if they do not turn out as we hoped. Spotify is all about the

passion to learn and grow.

Playful. We understand the need for a healthy balance of seriousness with play. We do our best to be

a playful company and brand.

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Tone:

Our copy is straightforward. We know what we want to tell people and the quickest way to say it.

We don’t beat around the bush when it comes to our ad copy. We keep it simple, minimalistic, and get

right to the point of what we are talking about - no extra words necessary.

Our tone is upbeat. We’re a playful brand, and our copy should evoke that. We tend to use movement

words like “moves,” “groove,” and “dance” for music-focused Spotify Premium ads, so our ads for

podcasts on Spotify should carry the same engaging, action-focused words.

Our copy reminds people we are entertaining. Spotify has millions of songs and thousands of

podcasts available at users' fingertips - which means plenty of options for one to entertain themselves

with. Our copy should inform and remind people of the variety of content available on Spotify, not just

the latest hits or celebrity podcasts.

Our copy tells people we’re reliable. We’re the leading music streaming platform for a reason. Our

copy should remind people that Spotify is the most reliable audio streaming platform for their music

and podcast needs. For example, our current Spotify Premium ads inform audiences of the Internet-

and service-free capability and an ad-free experience, which should make Spotify Premium users’ first

- and most reliable - choice for audio streaming.

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Problem:

While Spotify’s podcast audience has doubled since the start of 2019, only 14% of Spotify’s

monthly active users, or MAUs, currently listen to podcasts on the platform (De Silva, 2019).

Target audience:

18 to 35-year-old college students or college grads in the U.S. and Canada

● Engaged in politics, news, and current events and issues.

● Already uses Spotify (Free or Premium)

● Balances aspects of life such as work, health, friends, and family.

● Takes advantage of otherwise wasted time, such as a commute or workout, to catch up with

current events and topics, looking for in-depth knowledge of them.

● Their phone is an all-in-one device, used in both their personal and professional life.

● Knows what podcasts are, but may not know what kind of content is out there.

● Skilled, confident, and knowledgeable users of technology and social media.

Research insights

They listen to talk shows on their commute and while doing house chores instead of music.

They rarely find time to watch the news or late-night shows. They talk with friends about everything,

from politics to their daily lives. They share playlists on Spotify and recommend shows on streaming

apps. They may volunteer in their communities on their off time. They want to be informed but may

not have time to sit down and read a newspaper, books, or watch the news. As a result, they are always

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looking for ways to keep up to date on current events and learn more about things that interest them,

but may rarely seek out options. They grew up with cell phones and advances in computing

technology, so they could not imagine life without them. (Arnold, 2017; Claveria, 2019; Cummings, 2016; Fedder,

2018; Jankowski, 2018; Goldman Sachs, 2019; Miller, 2016; Oracle, 2015; Simmons, 2016; Smith, 2019; Pew, 2010)

Objectives and Key Message

Objectives:

1. Increase awareness about the ability to listen to podcasts on Spotify among existing Spotify

users by 45%.

2. Increase podcast listener base among the target audience by 20%.

Key message: Spotify is the best platform for podcast listening because it creates one home for all

your favorite music and podcasts.

Reasons to believe

● Spotify has nearly 250 million users across more than 75 countries worldwide, compared to

Apple Music’s 60 million and Amazon Unlimited/Prime Music’s 32 million (De Silva, 2019).

● Spotify is the second most popular place to listen to podcasts in the world (Spotify).

● Spotify plans to create a podcasts feature similar to its Discover Weekly playlist (Carman, 2019)

● Spotify is available across various branded devices, compared to its biggest competition, Apple

Music, which is only available on Apple products.

● Spotify is essentially the Netflix of podcasts, with 500,000+ available podcasts in a wide variety

of areas of interest (“Company info,” 2019). They also have quite a few Spotify-exclusive

podcasts, and recently struck a deal with former President and First Lady Barack and Michelle

Obama to have them produce a series of Spotify-exclusive podcasts (Spangler, 2019).

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How our creative delivers on our proposition:

We want to not only build awareness around the podcast feature but to also make

improvements to help it to stand out from the competition. Although some of our competition offers

music and podcasts in one place, no one offers it like Spotify. We offer more shows and episodes than

Pandora and have a more customer-based focus than Soundcloud.

Our audience should believe it because Spotify has already proven to be one of the best and

most popular streaming services, as evidenced by the ever-growing number of users. We just want to

make our service more useful to the people using it daily.

Response/CTA

Our ad campaign will focus primarily on remarketing, connecting to people who have used the

Spotify site, computer program or app within the last 30 days. Copy will include a button with one of

two CTAs, to be tested against each other for effectiveness.

CTAs: Listen now, learn more

Tone and voice:

1. You-centric

Our copy should put the emphasis and focus on the listener, using phrases like “We got you”

and “You heard right” to directly get the attention of our customers. Through our messaging, we

emphasize that Spotify provides audio content for whatever mood you are in at the moment.

2. Straightforward voice

Copy should not waste words - we know what we want to tell people and the quickest way to

say it. Keep sentences simple, minimalistic and short, can sometimes be two-three words. Nothing

should have to be explained in our writing. Use catchy words and phrases, and avoid jargon.

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3. Upbeat, entertaining, and playful

We’re a playful brand, and the tone of our copy should evoke that. We tend to use movement

words like “moves,” “groove,” and “dance” for music-focused Spotify Premium ads, so our ads for

podcasts on Spotify should carry the same engaging, action-focused words. If an ad focuses on a

particular podcast, it should use words related to the focus - for example, a true-crime podcast should

include words like “thrilling,” “mysterious,” or “horrifying.”

Social media copy in particular should emphasize this aspect of our tone. This can be in part

done by using emojis strategically to add a playful touch, particularly in tweets and Instagram posts.

Our voice reminds people we are entertaining. Spotify has millions of songs and thousands of

podcasts, which means plenty of options for one to entertain themselves with. Our copy should inform

and remind people of the variety of content available on Spotify, not just the latest hits.

4. Curiosity-inducing

Copy should peak audiences’ curiosity - about our platform, the variety of options Spotify

offers, and for different genres and new artists accessible through Spotify. Our podcasts encompass

every idea and field of interest; ad and social media copy should inspire people to check out the array

of podcasts we offer. Encourage them to try something new. Use exhilarating language to stimulate

feelings of interest and encourage people to step out of their comfort zones.

Emotional Reaction:

● Consumers should feel included, like there is something for everyone on Spotify.

● Consumers believe that Spotify is reliable - that they can come to Spotify and find their favorite

podcast, song, album, and artist.

● Consumers feel sufficiently entertained and happy with the content available and the ease of

access.

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Bibliography

Arnold, A. (2017, November 15). 5 reasons why millennials lead other generations in podcast

consumption. Retrieved from

https://www.forbes.com/sites/andrewarnold/2017/11/15/5-reasons-why-millennials-lead-other-

generations-in-podcast-consumption/#68422a7870ad.

Carman, A. (2019, March 5). Spotify's grand plan for podcasts is taking shape. Retrieved from

www.theverge.com/2019/3/5/18243729/spotify-podcast-strategy-gimlet-media-anchor-purchase

Claveria, K. (2019, April 24). How to engage millennials for customer insight and marketing.

Retrieved from

visioncritical.com/blog/how-engage-millennials-customer-insight-and-marketing.

Company info. (2019). Retrieved from https://newsroom.spotify.com/company-info/.

Cummings, C. (2016, April 18). Infographic: 72% of Spotify listeners are millennials. Here's how

they use the service. Retrieved from

https://www.adweek.com/brand-marketing/infographic-what-marketers-need-know-about-Mill

ennials-music-habits-170869/.

De Silva, M. (2019, October 28). Spotify is still the king of music streaming - for now. Retrieved

from

qz.com/1736762/spotify-grows-monthly-active-users-and-turns-profit-shares-jump-15-percent.

Fedder, C., Upadhyaya, J., & Joshi, S. (2018, July 27). Millennials and beyond. Retrieved from

https://www2.deloitte.com/us/en/insights/topics/marketing-and-sales-operations/millennials-x-

z-beyond-generational-marketing-consumer-profiling.html.

Goldman Sachs. (2019). Millennials infographic. Retrieved from

https://www.goldmansachs.com/insights/archive/millennials/.

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Jankowski, P. (2018, May 9). Which group of millennials are you targeting? Retrieved from

www.forbes.com/sites/pauljankowski/2018/05/09/which-group-of-millennials-are-you-targetin

g/#3932c70f7c72.

Miller, J. (2016, October 12). Infographic: Who listens to podcasts – and why they matter to

marketers. Retrieved from

https://business.linkedin.com/en-uk/marketing-solutions/blog/posts/B2B-Marketing/2016/Who

-listens-to-podcasts-and-why-they-matter-to-marketers.

Oracle. (2015). A new perspective on millennials: Segmenting a generation for actionable insights for

consumer goods companies and retailers. Retrieved from

http://www.oracle.com/us/industries/consumer/interbrand-cg-retail-cx-wp-2400662.pdf

Pew Research Center. (2010, February 4). Millennials: Confident. Connected. Open to change.

Retrieved from

https://www.pewresearch.org/wp-content/uploads/sites/3/2010/10/millennials-confident-conne

cted-open-to-change.pdf

Simmons Research. (2016, Fall). NHCS adult study: Spotify. Retrieved from

https://simmonsinsights-com.proxy-tu.researchport.umd.edu/essentials/quickreports

Smith, C. (2019, September 7). 145 important millennials statistics and facts. Retrieved from

https://expandedramblings.com/index.php/millennial-statistics-for-marketers/.

Spangler, T. (2019, June 6). Barack and Michelle Obama sign Spotify deal to produce exclusive

podcasts. Retrieved from

variety.com/2019/digital/news/barack-michelle-obama-spotify-podcast-1203234767/.

Spotify for Podcasters. (2019). Retrieved from https://podcasters.spotify.com/.

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Competitor Brand Analysis: Apple

Spotify and Apple Music as the two biggest music streaming platforms (Orellana, 2019).

Spotify launched in 2008, and Apple launched Apple Music on June 30, 2015.

(Orellana, 2019)

As seen in the chart above, the two streaming platforms’ pricing is very similar. However, only

Spotify offers a free, ad-supported tier; Apple Music’s streaming service only has Beats1 Radio

available to listen for free, not its music or podcast streaming.

In addition to the free tier, Spotify has several Premium plans for family, individuals, and

students, the latter of which comes bundled with Hulu and Showtime (“Spotify Premium,” 2019).

Similarly, Apple offers four subscription types: Individual, Family, Student, and subscriptions for

Android devices (Apple).

Both platforms offer around 50 million songs on their platforms (Orellana, 2019). Spotify

currently has 500,000+ podcasts; as of June 2019, Apple offers 550,000 podcasts (Winn, 2019).

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At times, both platforms will offer early access to new albums. Apple Music sometimes also

offers exclusive music videos (Orellana, 2019). Additionally, both platforms offer albums and

podcasts exclusive to the respective platform.

The ability to discover new music is a big feature on music streaming services. Spotify creates

tailored playlists based on what users are listening to, called “Discover Weekly” and “Release Radar;”

Apple Music has a similar playlist feature called “New Music Mix” (Orellana, 2019).

Both Spotify and Apple Music are available on iOS and Android devices, the latter of which

through Google Play for Android phones, and are available as desktop apps for PC and Mac

computers.

Apple Podcasts vs Spotify Podcasts

Similarities:

● It is free to listen to podcasts through the Spotify and Apple Podcasts apps.

● They both offer listening options on PCs and Macs.

Differences:

● Spotify’s podcasts and music are all on one app, while Apple houses its podcasts on a separate

app from Apple Music.

● The Apple Podcasts app is only available for Apple devices, while Spotify is able to be

downloaded on both Apple and Android devices.

● Spotify makes up about 10% of the podcast market share while Apple makes up about 60%

(Chambers, 2019).

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Ad comparison:

A. Video Ad

Spotify: “Let the Song Play”

Spotify’s most recent video commercial, “Let the Song Play,” highlights that relatable moment

when you do not want to leave the car until the song you are listening to finishes. There are no

celebrities or recognizable people in the ad, just “normal” people in different instances of this scenario.

The ad has a humorous aspect that is also tied into the use of relatability to draw in viewers:

while the person is vibing to the song in their car, people outside the car are watching and wonder why

the driver has not gotten out yet. The song playing is the piano rendition of Sia’s chart-topping song

“Elastic Heart.”

Copy at 0:45 reads “Ever let a song play out?” The ad ends with the Spotify icon and logo

next to copy reading “For the Ride.”

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Apple Music: “Asahd vs Khaled: The Negotiation”

Apple Music’s ad features rapper DJ Khaled, his young son Asahd Khaled, and the voice of

Kevin Hart to advertise both Apple Music through DJ Khaled’s song “No Brainer” featuring Justin

Bieber, Quavo and Chance the Rapper.

The comical element in this ad is DJ Khaled having a conversation with Asahd as Kevin Hart’s

voice comes out of Asahd’s mouth, DJ Khaled growing increasingly stunned by what his son is

saying. The only copy in this ad is at the end: on a black screen, first DJ Khaled’s name, the song title,

and the featured artists appear, then the copy changes to “Listen first on” followed by the Apple Music

logo.

Copy comparison:

Apple’s ad is more dialogue-centered, using well-known celebrities and humor to make the ad

stick in consumers’ minds. It is a very busy ad that does not do much to inform the audience about the

product, failing to really emphasize the service aside from brief copy at the end with the song title,

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artists, and an Apple Music plug. The humor and celebrity appearances can easily drown out the focus:

that this is an ad for Apple Music.

Spotify’s ad, meanwhile, is very simple and relatable to everyday people. The ad grabs

people’s attention by depicting a relatable, everyday occurrence, in a video that gets to the heart of

why people use Spotify: to enjoy the music they love. There is minimal dialogue, and unlike Apple

Music’s ad, the Spotify product appears throughout the ad. The ad’s copy serves is simple and short,

staying in line with the “Let the Song Play” campaign and drawing attention to the product over the

song itself. The copy focuses more on the service being offered than messing with a scripted video

with a potentially hard to follow scenario, like Apple Music’s ad.

B. Facebook Post

Apple has a separate Facebook page for podcast promotion. Spotify chooses to promote its

podcasts and podcasts feature on its main page; however, Spotify rarely highlights its large selection

of podcasts, posting mainly about artists’ new music, playlists for occasions, and movie soundtracks.

In addition to promoting podcasts that are also available on other streaming platforms, Apple

Podcasts page highly promotes podcasts that are exclusive to the platform, such as the following:

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Spotify’s posts about podcasts or the podcast feature are rare. The following posts about

podcasts are all music-focused or with music-focused episodes, which tends to be the focus of any

podcast-centered Facebook posts. The three posts below promote podcasts hosted by a music artist,

podcast episodes with track commentary, and a podcast that introduces new music to listeners.

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Copy comparison:

Apple Podcasts’ Facebook posts use appealing imagery and humorous videos. The copy is

straightforward and informative on what the promoted podcast is about. With curiosity-peaking copy

such as “Looking for a podcast to binge?” and “How to’s for everyday life,” Apple Podcasts draw

Facebook users in with the first few words of the copy, then briefly explain what the podcast is about.

Each post wraps with a link to the podcast.

Spotify’s podcast posts primarily feature videos. The copy is not as informative or descriptive

as Apple Podcasts’ copy, and there is frequent use of emojis to visually break up copy. Spotify’s copy

seems less likely to get users to watch the video and/or peak curiosity about the podcast. While Spotify

is known for being minimalist with its ads and copy, such minimalism is not necessarily effective

when drive consumers to listen to specific content.

C. Display Ad

Apple Podcast advertises original podcast content through display ads, such as the following

for the investigative podcast “Man in the Window.” Many of Apple Podcasts’ display ads promote

specific original content found on their platform, and usually focus on one podcasts series per ad.

Apple promotes their podcast app by highlighting podcasts with visually pleasing display ads.

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Spotify, meanwhile, primarily does simple, clean, and colorful display ads like the one below,

featuring the copy “Podcasts on Spotify” against a plain colored background. Spotify does have the

occasional banner ad that features a specific podcast, but those are less common - and less commonly

seen than the basic “Podcasts on Spotify” ads.

Copy comparison:

Spotify’s display ad is simplistic and right to the point, intended to simply let audiences know

that Spotify has podcasts available on its platform. Apple Podcasts’ ad, on the other hand, is visually

busy and copy-heavy, with a brief snippet about the podcast (“A new investigative series from the Los

Angeles Times”), the “Listen on Apple Podcasts” CTA, logos for the companies behind the podcast,

and a link to learn more about the podcast. So much in one ad can be perceived as informative, but

simultaneously cluttered when paired with the visuals. While it is on-brand for Spotify to keep ad copy

to a minimum, a line or two with the benefits of listening to podcasts on Spotify or types of podcasts

on the platform, as well as a CTA button, could take Spotify’s display ad to something more engaging

and informative.

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Sources

Apple Music [Apple]. (2018, July 27). Apple Music - Asahd vs. Khaled: The Negotiation -

Apple [Video file]. Retrieved from https://youtu.be/tPk_PbSTzZ4

Apple Podcasts. (2019, January 6). In Facebook [Product/Service page]. Retrieved from

www.facebook.com/ApplePodcasts/photos/a.315792715523734/607446406358362/?type

=3&theater

Apple Podcasts. (2019, February 7). In Facebook [Product/Service page]. Retrieved from

www.facebook.com/ApplePodcasts/videos/416832432390942/

Apple Podcasts. (2019, May 2). In Facebook [Product/Service page]. Retrieved from

www.facebook.com/ApplePodcasts/photos/a.315792715523734/668856793550656/?type

=3&theater

Chambers, B. (2019, August 22). Spotify vs Apple Podcasts: Should we fear Spotify's motives?

Retrieved from https://9to5mac.com/2019/09/01/spotify-vs-apple-podcasts/.

Join Apple Music on your iPhone, iPad, iPod touch, Mac, or PC. (11AD). Retrieved from

https://support.apple.com/en-us/HT204930.

Orellana, V., & Savvides, L. (2019, September 7). Spotify vs. Apple Music: The best music

streaming service is... Retrieved from

https://www.cnet.com/news/apple-music-vs-spotify-comparison-best-music-streaming-service/

.

Spotify [Spotify]. (2019, October 21). Spotify - 'Let the Song Play' (Extended Version) [Video

file]. Retrieved from https://youtu.be/-X_2TT43PRs

Spotify. (2018, December 24). In Facebook [Product/Service, App page]. Retrieved from

https://www.facebook.com/spotifyusa/videos/2453017368072888/

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Spotify. (2019, April 30). In Facebook [Product/Service, App page]. Retrieved from

https://www.facebook.com/spotifyusa/videos/334864747221688/

Spotify. (2019, May 30). In Facebook [Product/Service, App page]. Retrieved from

https://www.facebook.com/spotifyusa/videos/1619354458196662/

Spotify Premium. (2019). Retrieved from https://www.spotify.com/us/premium/.

Winn, R. (2019, June 1). 2019 podcast stats & facts (new research from June 2019). Retrieved from

https://www.podcastinsights.com/podcast-statistics/.

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Campaign Overview

Spotify is an innovative, sincere company dedicated to fair and transparent work,

collaboration, and helping artists and more recently, podcasters, share their creations. This

campaign aims to solve the problem of only 14% of Spotify’s monthly active users, or MAUs,

currently listening to podcasts on the platform. The target audience is 18- to 35-year-old college

students or college graduates in the U.S. and Canada who already use Spotify, either Free or

Premium. Our objectives are to increase awareness about the podcast feature on Spotify among

existing Spotify users by 45% and to increase the podcast listener base among the target

audience by 20%. Our key message, as well as the biggest reason to believe, is that Spotify is the

best platform for podcast listening because it creates one home for all your favorite music and

podcasts.

Advertisements:

1. Print ad - Magazine

This ad targets our customers that may be juggling school, work, and home life. We understand

they may want to listen to different things throughout the day depending on their mood or what they

may be doing. This ad would be placed in People, Sports Illustrated, Entertainment Weekly, and Time

magazine as a full-page ad.

● Headline: Something for everything in between (35 characters)

● Body Copy: Listen to music and podcasts on (31 characters)

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● Mandatories: Spotify logo and icon

● CTA: Download the app (icons for “Available on the App Store” and Google Play)

2. Digital display - Out of Home

Display ads will target commuters, or the “Spotify on the go” users, and will be strategically

placed along common commute routes and high traffic areas such as transit stations and interstates.

Aimed at active Spotify users, the advertisement promotes the idea of listening to podcasts during

commutes. This display ad will, as a side result, also promote the podcast feature on Spotify.

● Headline: Long daily commute? (19 characters)

● Body copy: Podcasts now on [followed by Spotify logo and icon]

● Mandatories: Spotify logo and icon

● Visual - picture of a person wearing headphones while walking/on the train OR person in the

car. Sun icon. Any colors used should be bright and playful.

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3. Social - for Instagram

Spotify’s Instagram account has the most followers and the best post engagement, compared to

those on Facebook and Twitter. It also has the best options for interaction, as Instagram allows for

sharing multiple pictures in one post, linking posts to Instagram TV videos and products, and sharing

posts directly to an account’s story.

Aside from raising general awareness that podcasts are available on the service, the target is

Spotify users who are active, on-the-go people who may not have the time to get their news or

entertainment from more manual methods, such as a book.

● Headline: Enjoy your podcasts on the go (29 characters)

● Mandatories: Spotify logo and icon

● CTA: Listen now

● Visual: person in a car at nighttime, moon icon

● Caption: Long drive home from work? Wind down from the day with the latest episode of your

favorite podcast! #PodcastsOnTheGo #SpotifyPodcasts

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