Spotify considers allowing advertisers to sponsor popular personalised playlist
For the first time, the company says that it will allow a brand to sponsor this playlist as opposed to just running ads, allowing advertisers to "own the personalized listening experience."
According to Spotify, Discover Weekly listeners stream more than double the amount of users who don’t listen to the playlist because of the personalized experience it offers. That will make the ad product more compelling, compared with brands’ existing ability to sponsor other editorial playlists on the service.
With Spotify’s Sponsored Playlist ad product, brands can surround Spotify’s free listeners with audio or video messages in ad breaks, and gain Spotify’s help in building a collaborative marketing plan.
“At Microsoft, we are focused on empowering every individual and organization to do more. Our work in AI is a central part of that mission to unlock human ingenuity,” said Erin Bevington, General Manager of Global Media at Microsoft, in a statement.
“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.”
Spotify recently passed 200 million monthly active users but is now looking to new ways to generate revenue from its user base beyond simply converting free users to premium subscribers.
Danielle Lee, Global Head of Partner Solutions at Spotify said in a statement: “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.
“Our new Discover Weekly ad experience positions advertisers for success and ensures that our fans are hearing messages that embody the ethos of discovery.”
Spotify said that brand sponsorships for Discover Weekly are currently in beta testing.