Spotify recently launched its Spotify Ad Studio on the Canadian market, which allows marketers a new vehicle for audio advertising. At first, glance, once you are inside the Ad Studio's dashboard, it looks very similar to Facebook's Ad Manager. You begin by selecting an Ad Objective, and you name your ad.
Brands can either upload scripts and choose background music, in order for Spotify to record their ads, or they can upload full audio spots directly to the Ad Studio.
Ads can be targeted via music genre, location, gender and age, as well as mobile or desktop users. Budgets and dates can be customized for specific campaigns, and results can be tracked after the ads have run.
Spotify has approximately 95 million ad-supported users globally. They range mostly between the ages of 18-35 and are given limited, shuffle-only access to the platform's full catalogue.
According to the 2016 CRTC, the Canadian Radio revenue accounted for 11% of the total 17.9 billion broadcasting revenue. Because Spotify does not publish its membership data by country, it is difficult to know just how many of their 95 million ad-supported users are in the Canadian market.
With the radio revenue on a decline between 2012 and 2016, it will be interesting to see how much of the pie Spotify will carve out in the coming years.
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