More listeners are choosing to consume music and podcasts, creating unique opportunities for advertisers to reach a large and engaged audience.
We are once again moving into the landscape of audio advertising and this time we have spoken to Gabriel Nejse at Spotify. Gabriel tells us more about Spotify's offering, about the difference between advertising in a podcast environment versus a music environment. He gives tips on what you as an advertiser should consider when creating your audio spot and much more.
Dwise: Hi Gabriel, who are you?
Gabriel: Hi! My name is Gabriel and I'm an Account Director at Spotify. I work to create and maintain long-term relationships with customers and partners who use the Spotify platform to reach their audience.
Spotify's offering & thoughts on the future
Dwise: You are best known for music, now you have also started with podcasts. What is the difference for the advertiser between advertising in a music environment versus a podcast environment in your opinion?
Gabriel: One of the obvious differences between music and podcast environments is the type of content that the advertiser is a part of, which affects how the advertiser reaches their audience. For example, in a music environment, ads are typically short and focus on delivering a message in an engaging way, whereas in a podcast environment, ads can be longer and more detailed because listeners expect a longer discussion.
Another difference is the target audience. By advertising a podcast on Spotify, you also reach paying subscribers.
Dwise: Tell us and the readers more about Spotify's offerings and what is the programmatic evolution of Spotify?
Gabriel: We offer a wide range of ad formats such as audio, display and video ads, podcasts and playlist sponsorship. And of course, we also offer different targeting options based on geography, demographics and audience to help our advertisers reach a specific audience.
An important part of our advertising offering is programmatic advertising, which enables the automated buying and selling of ad slots on the platform. Our programmatic advertising takes place through our self-service platform, Ad Studio, and through various DSPs. We have a long history of investing in technology to measure our advertisers' viewability and engagement, which in turn helps them understand which ads work best for their audience.
Dwise: How has Spotify seen Online Music & Podcast advertising evolve over the past few years, and what do you think the future holds?
Gabriel: We see more and more listeners choosing to consume music and podcasts on platforms like Spotify, which in turn creates unique opportunities for advertisers to reach a large and engaged audience. Thanks to this, we have seen steady growth in Online Music & Podcast advertising over the past few years. The number of advertisers using the platform has increased significantly and we have continued to develop new advertising products and partnerships to meet the demand from our advertisers.
There are also new technologies and formats that allow advertisers to reach listeners in a more personalized way. One trend we see is programmatic advertising and we at Spotify have invested in programmatic advertising products and partnerships to give our advertisers the opportunity to reach their target audience more effectively and to streamline their advertising. So we at Spotify think the future looks bright.
Benefits & challenges of Music & Podcast
Dwise: What are the main benefits of Online Music & Podcast advertising?
Gabriel: I would say that the main benefits are targeted advertising, high listener engagement, improved brand awareness, flexibility and measurability of advertising results. This makes it a cost-effective and measurable way to reach a relevant and engaged audience.
Dwise: What would you say is one of the benefits of programmatic advertising?
Gabriel: There are several benefits. Programmatic advertising has the potential to provide advertisers with better results because it provides more control over advertising and the ability to target specific audiences and optimize campaigns in real time. And because you control in real time, you have access to real-time data to measure and adjust performance immediately. It also automates the buying process, saving time and resources and enabling more effective advertising through advanced algorithms and machine learning.
Dwise: Is there any particular type of advertiser or industry that would benefit more from Online Music & Podcast advertising in your opinion?
Gabriel: As music and podcasts are part of many people's daily lives, we believe that all types of advertisers can benefit from this type of marketing.
Sound bites, industries & creative strategy
Dwise: What are some of the biggest challenges advertisers face when it comes to advertising in Online Music & Podcast?
Gabriel: I would say as another wise man once said (Olle Bråne, Bauer Media), it's the production of audio. Most advertisers have a display or video strategy, but not everyone has an audio strategy, and here we have access to a range of professional audio producers who can create high quality audio content for ads, including copy, music, sound effects and voice recording.
Dwise: What are the most common spot lengths for Online Music & Podcast advertising and what are the benefits of different lengths?
Gabriel: The most common spot lengths are 20, 30 and 60 seconds. Ad lengths vary depending on the podcast or radio program, the target audience, and the goals of the ads. For example, a longer ad may work better to inform about a new product while a shorter ad may work better to build brand awareness.
Dwise: What to consider to produce a good spot for Online Music & Podcast?
Gabriel: You should have a clear and concise message. By this I mean that the spot should be able to quickly convey the brand's message and offer. Then it's important that the "tone" and voice of the spot is appropriate for the brand's personality and target audience. Similarly, music can help create a feeling and engage the listeners and here you should also think about using music that fits the brand's personality and target group. And of course, the spot should have a clear CTA, call-to-action.
Something not everyone thinks about is that it can be wise to use different spots for different platforms and target groups. And then, of course, test and measure the results to see how the spot performs and if it needs to be optimized or adjusted to be more effective.
Dwise: How does Spotify see the collaboration with Dwise and what benefits do you see that we at Dwise contribute?
Gabriel: I think our cooperation works very well! Both we and you have a strong position in the audio and podcast market: you offer knowledge and excellence together with an agile and efficient programmatic advertising platform, and we are one of the world's leading music and podcast streaming services. The result of our collaboration is an effective and measurable advertising experience for advertisers and a relevant and engaging audio experience for listeners on Spotify. Simply put, it's a win-win for everyone.
Dwise: Thank you Gabriel for your time!