Marketing Strategy of Spotify
Spotify is quickly establishing itself as a major music streaming service for millennials, and its ascent to popularity has been pretty remarkable. There are currently more than 299 million customers spread across more than 100 markets. The top musicians may create playlists, promote their music, and interact more effectively with their fans on Spotify’s global streaming platform, where users can listen to their favorite artists. Daniel Ek created Spotify in 2006 with the straightforward idea of thwarting music piracy and assisting artists in receiving more fairly compensated. Because of its simplicity and marketing approach, it now has nearly all of the best up-and-coming singers and songwriters as well as local musicians on its platform.
Let’s understand Spotify’s marketing strategy through this blog
Spotify Target Audience
Spotify’s target audience is millennials, with its primary market set in the USA. Along with this, Spotify has been known to target students and business professionals as a platform because of their time spent listening to music online. Here is a table classifying Spotify target audience in different sections:
Age — Mainly 18–24 years
Total markets — 178+
Gender — More men than women
Top countries — The USA, Europe, Latin America, North America
Type — Students & Young Business Professionals
The revenue model of Spotify:
Spotify, which has over 299 million subscribers across 92 nations, uses a freemium revenue model, in which the core services are offered without charge but users can pay extra to access certain features.
In this scenario, all of the music are accessible to Spotify subscribers for free, but they are interrupted by audio-based adverts after a few tracks.
Users can subscribe to Spotify Premium for a month’s worth of ad-free music, unlimited skips, offline listening, and exceptional audio quality. Additionally, Spotify had more than 138 million premium customers globally as of the second quarter of 2020.
The Launch of Spotify in India
In just one week after launching in India in February 2019, Spotify had secured a staggering 1 million users. Surprisingly, Spotify India captured 15% of the Indian streaming market in just one year. The digital marketing firm in Gurgaon discovered that, in order to dominate the Indian market, Spotify India struck a tremendous deal with music label “T-Series” and obtained the streaming rights for more than 160,000 songs that are popular among Indian viewers.
Business plan for Spotify in India’s music streaming market:
- Ensured that the Spotify App was accessible on all platforms, including Android, Apple, computer devices, and many others.
- The USP of Spotify India, “Creating a Specialized Playlist,” is something the company never fails to highlight.
- Recognize the interests and behaviors of the listener. Due to the fact that Indian music are the most popular, all advertisements are consequently largely placed around Indian songs.
- The brand focuses on developing interactive adverts using a variety of forms to avoid bothering the users.
- Offering and promoting a vast selection of music, including Telugu, Tamil, Hindi, and Punjabi.
Marketing Strategy of Spotify
Let’s take a look at some of the critical features of Spotify marketing strategy that helped the platform reach the top:
Freemium Model is the USP of Spotify
This platform’s main selling point is that it is free for users, with some ads playing in the background while the music is playing. Because consumers can access free music without purchasing a membership, it has been discovered that Spotify’s freemium model strategy has worked remarkably well. In order to continue pressuring users to upgrade to premium membership and listen to music uninterrupted by commercial breaks, Spotify also made the most of this feature by promoting adverts in between tracks. It was able to increase its global membership base thanks to this inventive marketing tactic.
A simple interface for an app
The fact that Spotify’s user interface is utterly basic, simple to use, and elegant in both the app and on Chrome is an important component of its marketing approach. This makes it a top option for both musicians and music lovers.
Getting in touch with artists to form partnerships
Nearly every major industry’s top musicians are connected to Spotify in tight ways. This gives consumers a means to interact with their favorite musicians, which results in open live events — another great approach to entice new subscribers who will enjoy the exclusive content!
Promotional ads with emotion
Even in India, Spotify advertisements frequently include a family, which packs a punch of levity and emotional power. So, either during Christmas, Diwali, etc., you will see advertisements. These cultural advertisements can better popularize the brand thanks to their lasting effect.
Customization at its Core
The AI interface for Spotify has been designed to be user-specific. It doesn’t matter if a millennial is searching for hot Instagram music or listening to podcasts on Spotify or a Gen Xer is. Spotify is prepared to cater to each user’s tastes.
Lessons Learned From the Spotify Marketing Plan
Following are the key lessons learned from Spotify Marketing Strategy:
- The Freemium business model is fantastic for both users and the platform. This is because people are receiving free music while seeing advertisements, which sounds like a win-win situation for both parties.
- Including emotions in your advertising can improve your connection with the target market and expand both your local and global reach.
- Another approach to stay current is by strategic alliances with artists, their labels, popular musicians, and podcasters.
- The experience is more individualized and very user-centric thanks to a simpler and more user-friendly AI interface.
Thus, we hope this blog provides you with all the details of Spotify marketing strategy.
Authors:
Chaitanya Ranaware
Rutuja Hilay
Aayush Wagh