Spotify Marketing Strategy Creating its Sound of Success

Spotify marketing strategy

Introduction

Music is something that everyone loves, and jamming over music is the favorite hobby for most people. They say, “Music can lift any mood,” as there is music for every mood. But to play them, you need a music streaming platform where you can find millions of songs. Spotify is the world’s best music streaming platform, with millions of songs that suit your every mood. But how did it become the best? Let’s check out the marketing strategy of Spotify to get this answer.

Spotify is ruling the music industry with over 345 million users and 155 million subscribers. Among the music streaming apps like Apple Music, Amazon Music, Google Play, Youtube Music, and other music streaming platforms, Spotify has the highest market share of 32-34%.
So, how does Spotify create such a huge user base?

Spotify’s journey has not been so smooth, and despite facing backlash from Taylor Swift, who is a global icon in the music industry, and involved in a data leak controversy, the platform is leading.

Well, let us sink into the sound marketing strategy of Spotify to know its success secret.

How its Musical Journey Began?

The musical journey of Spotify was born out of passion. Daniel Ek, who is the founder and CEO of Spotify was always passionate about music. But, his journey didn’t go well as he failed to create a career in music. Daniel Ek, with Martin Lorentzon (Co-Founder of Spotify), founded Spotify.

Daniel Ek, with Martin Lorentzon (Co-Founder of Spotify)

The idea for launching Spotify

The idea to launch Spotify was to deal with music piracy. Before music streaming platforms were not popular, people used to download pirated music files which was a problem for the music industry. So, Daniel and Martin converted this problem into an opportunity because they realized that music streaming has a huge potential and founded Spotify in 2006. The core of Spotify’s business lies in audio and music streaming.

Spotify is made by the two words ‘Spot’ and ‘Identify.‘ Daniel and Martin just came up with random names for their streaming platform, and Spotify was misheard word by Daniel and ended up becoming its final name.

Spotify was founded in 2006, but it got its launch in 2008. Since then, it is serving music lovers with podcasts, music videos, and songs.
Today Spotify is the top music streaming app worldwide, which came out of passion, problem-solving, and finally, love for music.

The Marketing strategy of Spotify

Spotify’s marketing strategy is not a static one, but it is evolving. Spotify is not just following the latest trend but also creating new trends to promote itself. So let us breakdown the marketing strategy of Spotify.

Social media Marketing

Spotify’s social media handles are a great place to visit if you are a music lover. The music streaming platform posts about various artists, new album updates of the music industry.
Spotify has various social media handles based on different geographical locations. The brand focuses on consistent branding over all of its pages.

The platform also runs various hashtag campaigns and social media trends to create awareness for its brand.

Also, the brand collaborates with social media influencers and runs sponsored ads where influencers promote the brand in their style.

2018Goals-Spotify marketing hashtag campaign

At the end of 2017, the brand started a global hashtag campaign called #2018Goals. In this campaign, the brand used its data to show that 2018 is an optimistic year for them. Using #Goals was intend back in 2017, and the music company capitalized on that idea to gain popularity.

Data-Driven Marketing Campaign

Spotify masters its art of selling by using its streaming platform data. The company uses its music records and creates marketing content. So, it means Spotify, using Spotify, to sell Spotify.
An example of its data-driven campaign is the campaign that Spotify ran in 2016 that united the music platform with its users.

2016 was a weird year as Trump became the president of the USA, there were celebrity deaths, Leonardo de Caprio won Oscar and so much more was going on. So the music company capitalized on it and created a campaign name “Thanks 2016, It’s been weird.” The company used its data and playlists and created some quirks that made the audience laugh. The music platform gained much popularity after the campaign.

Thanks-2016-Its-been-weird-Spotify-campaign

Meme Marketing

Spotify understands how to create a relationship with the Gen-Z and Millenials, which are its target users. And what could be better than Memes to target the Millenials and Gen-Z? 

The meme marketing strategy is widely popular that marketers use to make the audience laugh and sell their brand at the same time. Spotify also uses this strategy to connect with its target audience.

spotify-meme marketing strategy

When most brands use social media platforms, Spotify chooses conventional media mixes it with unconventional marketing communication. Billboards are a kind of unconventional media of marketing, and Spotify creates billboards that include memes. A Billboard meme that can catch all the eye. Bravo!

So Meme marketing is how the music company pitches its target customers.

Affordable Premium Pricing

Spotify also has a subscription-based model where the users can download songs and stream music without any ads. It is the Spotify premium which is a paid version. The pricing of its subscription base model is quite affordable for the users. That’s how it manages to get its 155 million subscriber base.

Spotify Subscription model

Also, a great thing about its subscription model is that it offers a one-day subscription to users at just ₹7, where they can stream music ad-free and download up to 30 songs.

The streaming platform has various plans like prepaid premium plans, family premium plans, student premium plans, and premium duo plans. Even their premium pricing is affordable for users, and that’s what the users love about Spotify.

Personalized Marketing

When a brand offers a personalized experience to its customers, then it sure is a hit. That’s the secret of Spotify’s success. Spotify offers a personalized experience when the user installs the app and uses it for the first time. The users can opt for preferences of what kind of music and what artist they like.

One of the marketing strategies of Spotify is based on User-based content and personalized advertising. Spotify Wrapped a feature that is running since 2017 and is a massive hit. Also, Spotify runs hashtag campaigns like #2020Wrapped and #2019Wrapped every year to promote this feature.

Spotify Wrapped feature reports what the user has been listening to on Spotify the whole year. It displays the user’s preferences, favorite artists, the number of songs listened to in a year, and the time user spent on the app. So that’s how the streaming platform connects with users at personal level.

Brand Endorsements

A brand that connects with Millenials and Gen-Z needs an ambassador who is capable of doing the same. So in India, the music streaming company found the perfect brand ambassador for Spotify. The famous actor Anil Kapoor is promoting the brand, and the actor’s ability to connect with youngsters is the reason Spotify wanted him to endorse the brand.

Also, Spotify’s latest campaign on Women’s day, #FlexYourPowerToListen is run by the sensational singer Neha Kakkar. So, the brand knows who is the right choice to promote their brand that it reaches out to millions of people.

Enhance User Experience

When a brand is offering a service on a digital platform, then it has to focus on enhancing the user experience. Spotify hits right at the mark with its user-friendly in-app features. Most music apps include too many options, but Spotify has a minimal design that makes the user’s experience better. Even its free version looks like a premium version.

Just like the Spotify app, the Spotify website ensures the same enhanced user experience with clean, minimalistic design and easy navigation. The website design targets its niche audience, which is the Millenials with the energetic color scheme.

The best thing about the app design is there are no ad pop-ups in the app, and even the ads they play in audios are interactive and do not annoy the users. So, Spotify knows how to keep it simple yet impactful.

Event Marketing

The marketing strategy of Spotifyalso includes event marketing that it employs to pitch large audiences. Spotify is the exclusive audio service provider for Riot Games “League of Legends” esports. It is their multi-year pact and the first global paid sponsorship deal of Spotify.

league-of-legends-x-spotify-event-marketing-strategy-of-spotify

League of legends is a massive event and sponsoring that event. Spotify will augment the League of Legends official hub for music on Spotify which includes 5 million monthly listeners where they can add music, podcasts, and playlists inspired by the gaming community.

Tic Tac X Spotify Music Edition

Have you always dreamed of seeing Ariana Grande live in New York? How about Ed Sheeran in London? Tic Tac will take you to a global music experience of your choice, valued up to $10,000.* Just buy two packs of specially marked Tic Tac Music Edition packs and enter at tictac.com.au for your chance to win. Terms and Conditions apply. . . . *Ts&Cs apply. AU & NZ residents 18+. Starts 1/2/19. Ends 1/4/19. Prizes: 7500 x 1-month Spotify Premium codes valued at AUD$11.99 (7,140 in AU, with 119 to be won instantly each day and 360 in NZ, with 6 to be won each day via draw); 60 x 12-month Spotify Premium code valued at AUD$143.88 (AU/NZ combined, via daily draw); 1 x music experience for 2 valued at up to $10.400 (AU/NZ combined, via major draw). Draws: 500 Chapel Street, South Yarra VIC 3141 at 11am (NZ only) and 12pm (combined) each business day 2/2/19 – 2/4/19 and 1pm on 2/4/19 (major draw). Winners of combined daily draws and major draw published on www.tictac.com on 5/4/19. Promoter: Ferrero Australia Pty Ltd (ABN 29 001 249 261) of Level 18, 168 Walker Street, North Sydney NSW 2060. NSW Permit LTPS/18/27515 ACT Permit TP18/01637 SA Licence T18/1507.

Posted by Tic Tac on Tuesday, 5 February 2019

Another event partnership of Spotify is with Tic Tac. The name of the event series is Hear For It. Tic Tac used Spotify’s streaming platform to connect and engage with the audiences who possessed the same personality as their brand; Fun and refreshing.

Key Takeaways

So it’s a wrap with Spotify Marketing Strategy. There is so much that the brands can learn from Spotify. A brand goes through a lot of efforts to be at the top, especially in marketing. Marketing can take any brand from the bottom to the top.

Here are some of the key takeaways :

  • Create a brand personality that suits the target audience’s personality.
  • Offer optimal value and experience to the customers.
  • Include customers in the marketing strategy.
  • Design authentic marketing campaigns.
  • Focus on enhancing the customer experience.

So, build your brand’s marketing strategy to compose its sound of success.

Tejaswani Sharma
My educational background is in Management and business administration. I've always had a keen interest in marketing, which has brought me here to present the knowledge that I've gained on this subject and matters related to it. I am very observant of things, and I think that the best way to learn is through observation. I love being creative with my ideas and every work that I do. I'm always happy to help others in whichever way possible. I believe that a positive mind leads to a happy life. My mantra in life is to go with the flow and accept whatever comes my way. I love listening to music in my free time. My interests include watching movies and series that involve reality, lifestyle, docudrama, and Art.