Streaming audio player Spotify hosted 2021 Love Audio, a virtual event where it shared its plans to reach listeners through multiple touchpoints, and highlighted FMCG ad trends, target audience areas and more. .
Arjun Kolady, Head of Sales, Spotify India, said the platform has built segment and brand specific solutions to attract more advertisers.
“The platform has been stronger and more visible in terms of providing advertisers with the right solutions this year and looks forward to attracting more advertisers with our effective brand-specific advertising solutions,” he added. .
Kolady said Spotify, with 365 million monthly active users, has a presence in 178 markets around the world.
In India, a predominant part of its listeners and users are located in the top eight to ten cities. “Growth over the past year and to date continues to be very strong. The rate we grew up with in both (premium and free) was high. Globally, 46% of users are on premium, but in India the industry average for premium users across all audio platforms is low. We’re on top of that, but for now our local activity will be guided by the free tier. 90% of our revenue, globally, comes from premium, he said.
Kolady said Spotify appears in 10 billion searches every month. “The monthly search result is magical not only for us, but also for advertisers. Brands rate the platform based on monthly discovery results. It helps us provide micro-moments of joy to our listeners.
Sharing content information on the platform, he said Spotify offers more than 70 million tracks, four billion playlists and 2.9 million podcasts.
During the Covid pandemic, Spotify India not only expanded its business to over 100 brands and activated podcast promotions, but contributed significantly to global growth. Despite the strong growth in audio in recent years, Kolady says, brands are still slowly realizing the opportunities it presents.
Audio emerges as a stronger medium than video
“Brands and marketers believe audio is reaching the unreachable,” he said.
When asked what makes audio streaming apps so popular, he explained that most of the time people spend with music is screenless. On average, 79% of audio consumption occurs when visual media cannot reach them, making audio an important platform for brands.
Connecting the lines to digital marketing, he said video is considered one of the most powerful communication mediums in the digital age, but it is cluttered and engages people for short periods of time compared to audio.
“Video takes a lot longer, is competitive and difficult than audio,” he said.
Video-based communication only reaches people when they are spending time on screens. However, on the other hand, the audio works even while driving, taking a bath, traveling on public transport, cooking, etc. Music has become a permanent partner of consumers in all of these activities, and it gives advertisers a number of moments to communicate with them indirectly.
Music applications: a favorite of FMCG brands
FMCG brands like Coca-Cola, OnePlus, McDonald’s, etc. are taking advantage of Spotify with their creative content. So what makes Spotify a favorite among FMCG brands? Kolady said the main reason FMCG brands are more drawn to the platform is the kind of moments they have to connect with listeners.
“Our audiences listen during key moments for FMCG brands,” he said.
People prefer to listen to music while doing other activities such as relaxing, cleaning, cooking, reading or working. These are all times when audio is present but listeners are not necessarily available for screens. These act as key moments for FMCG brands, so they depend on audio apps to tap the moments. For example, if a person is listening to music while cleaning the house, it is a great time for a detergent brand or if you are cooking and listening to Spotify, it becomes a relevant time for food and nutrition brands to appear and do. the listener feels his presence in a subtle way.
Which category of FMCG is more interested in advertising on Spotify? Sweets and confectionery, followed by drinks, he said.
Marketing moment: an emerging trend in the audio industry
One-off marketing is a popular communication trend, which is now also dominating the audio industry. Interestingly, people have time-specific playlists such as “songs to listen to while going for the vaccine,” “songs to listen to when you get back from the immunization,” songs to listen to when you get stuck on the vaccine. Suez Canal ”, and so on at. Brands are also joining this current marketing trend on Spotify.
Sharing an example, he said Netflix made the Sacred Games launch a moment in itself by releasing albums dedicated to each character.
Behavior change in millennial parents
The pandemic has brought about various new trends and changes in listening patterns. During the pandemic, smart speakers have become a pandemic staple among millennial parents, Kolady said.
“79% of millennial parents listen to music and podcasts through speakers, while 80% of millennial parents say their children now often take control of home entertainment devices. 62% of millennial parents own at least one smart speaker and 93% said they plan to buy one in the next 12 months, ”he said.
This change in behavior among millennial parents is helping brands connect in small but meaningful moments in everyday life.
Content is key for advertisers
According to Spotify, when it comes to advertising, the content and how brands deliver it to their target audience becomes the most important. Brands need to focus on connecting with customers, building trust, and answering audience questions through what they present.
“I think brands should have a content-driven approach when planning their marketing communications campaigns,” Koladi said.
Explaining how their brand-specific advertising solutions work, Kolady said, for example, that if a brand wants to reach a cohort of gamers, it should line up with the best gaming podcasts to get the word out.
Additionally, he said content powered by discovery research data can help brands be a major part of audio culture and reach multiple touchpoints.
“We have solutions for automotive marketers, e-commerce and for many other categories while having solutions when we want to launch a product or according to the positioning of the brand or the needs in content marketing“, t -he declares.