Spotify teams up with Microsoft as it takes its advertising strategy to a new level
Spotify has teamed up with Microsoft, as its beta launch partner, for a new advertising strategy. It's flagship Discover Weekly playlist, famous for generating a personalised 30-song playlist of new music each week based on listening habits, will be available for commercial sponsorship. This will only take place across Spotify's free tier user base, not its paid tier, as it looks for innovative ways to increase ad revenues, without harming engagement.
Microsoft will feature its artificial intelligence campaign 'Empowering Us All' on the Discover Weekly playlist. “At Microsoft we are focused on empowering every individual and organization to do more,” Microsoft’s general manager of global media Erin Bevington said in a statement. “Our work in AI is a central part of that mission to unlock human ingenuity. Our partnership with a technology innovator like Spotify offered a way for us to effectively share that message within a personalized entertainment experience powered by AI.”
“Personalization has quickly gone from a nice-to-have to an expected consumer experience that delights audiences, and marketers are craving opportunities to be part of it,” Danielle Lee, global head of partner solutions at Spotify, said in a statement. “Our new Discover Weekly ad experience positions advertisers for success and ensures that our fans are hearing messages that embody the ethos of discovery.”
While Spotify has allowed the sponsorship of playlists since 2016, ads have never graced the hallowed Discover Weekly, which has become a core feature for its engaged user base. Spotify has indicated that Discover Weekly listeners stream twice as much music on the platform as those users that don't listen to the playlist. Thus, the value of an engaged user base, actively listening to a sponsored Discover Weekly playlist makes for an interesting advertising proposition.