Spotify: Singing a Happy Song About Mobile

Spotify Singing a Happy Song About MobileSpotify, the popular music streaming service accessed by millions of avid listeners, is singing a happy song.

It’s got a great service, a loyal core of listeners, and a road map for the future. And where’s the sweetest spot in the whole tune? If you believe Spotify execs, it’s in mobile.

Spotify staffers spent a week in Cannes pitching agencies and brands on a new panoply of ad offerings designed to help marketers reach the growing adherents its free mobile tier attracts.

About 40 million people currently use Spotify every month; only 10 million of those users pay for its ad-free subscription. The real kicker: mobile devices now outstrips desktop in every major market. Making money from its mobile users is a priority, the company has said.

“In the last 12 months we’ve been working on our ad strategy knowing mobile is exploding in a big way,” says Jeff Levick, Spotify’s chief business officer. “In most major markets our use on mobile is now greater than on desktop so we’ve been building an ad product suite that supports that.”

Levick said the soon-to-be promoted suite includes three new ad offering. The first is a video format that will offer users an hour of ad-free music in return for watching a single video ad. The second is what Spotify describes as a “sponsored moment” the company says will allow brands to reach users in specific contexts, such as when they’re working out in the morning. The third is a desktop-only interstitial video format.

“Our ads going forward will be more about content,” Levick explains. “Our ultimate goal is to make advertising that lives on Spotify equal to the content that lives on Spotify. We want to give users advertising that supports the things they’re doing.”

According to Levick, big houses like Nike, McDonalds, Kraft, Samsung, and Coca-Cola have already agreed to test the new units.

Spotify is also singing a happy song about the power of its data. In March, the company picked up music data company The Echo Nest, which Spotify says is helping it understand “more about its users than ever before,” and allowing it to identify audiences in a way that makes tailored targeting more effective.

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