Spotify made its debut back in 2008, offering free, unlimited access to its massive catalog of over 50 million songs. The only downside was the intrusive audio ads that played between songs.
Currently, Spotify has over 400 million users, including more than 182 million paying subscribers. How did Spotify convince so many millions of people to opt for the paid premium service instead of using the “freemium” service? Creative, targeted marketing strategy was their primary tool.
Spotify Marketing Strategies: Key Takeaways
The core of the Spotify marketing strategy is to encourage users to subscribe to premium to avoid the annoying ads that interfere with their listening experience. But, there’s a bit more to it than that. According to Spotify’s CEO, Daniel Ek:
“Music matters. To the world and to Spotify. It’s where we started and what continues to inspire us as we build the most valuable platform for artists.
We’re nowhere near done.”
Their brand reached its current position as number one thanks to a combination of strategic marketing campaigns. The Spotify app transformed the way people listen to music and has become the world’s most popular music streaming service available today. Let’s see how they continue to maintain a loyal consumer base:
1. Converting Spotify Freemium Users into Premium Subscribers
First, Spotify marketing campaigns promote the idea of becoming a premium subscriber to eliminate repetitive audio ads. Secondly, freemium users are not allowed to use the “skip” button without first viewing a video ad. So, many users are willing to pay a small membership fee to enjoy uninterrupted listening.
2. Creating a Stylish, Minimalist Website and App Design
With its clean, colorful, easy-to-navigate website and app design, Spotify attracts millennials who are looking for the ultimate music streaming experience that is customized according to their own tastes and needs.
3. Building a Sense of Community
With a blog and community pages, Spotify created a digital community where music lovers worldwide can communicate with each other. They share information about music, pop culture, student discounts, and more. Spotify encourages freemium users to sign up for the premium service so they too can enjoy being a part of the community.
4. Expanding Social Media Presence
Spotify has an impressive social media presence with Facebook and Twitter, so they found ways to take advantage of these free marketing tools. Through these platforms, fans and artists share music they love, creating another way to socialize and connect.
Spotify members integrate their accounts with social media accounts to share playlists with friends who then play them through their own Spotify accounts. You could say that Spotify has become its own social network.
5. Increasing Revenue for Recording Artists and Producers
During the past year, three major music partners brought in over $12.5 billion revenue from streaming recorded revenue alone. About one-third of that revenue represents Spotify payments. About 28% of artists who self-distributed on Spotify generated over $10,000.
How Much Is Spotify Premium?
To keep the customers coming back year after year, Spotify knows their membership must remain affordable. So, how much is Spotify Premium?
You can get the first month free by signing up for one of the following:
- Individual ($9.99 mo.)
- Duo ($12.99 mo.)
- Family ($15.99 mo.)
- Student ($4.99 mo.)
Like Spotify, your company can benefit from strategic digital marketing. When you choose V12 Strategies as your digital marketing provider, your company will stand out from the crowd.
With over 20 years of digital marketing experience, V12 Strategies provides marketing services, strategic advice, analysis, and reputation management tailored to your specific brand and customer base.
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newsroom.spotify.com – Spotify’s Top 10 Takeaways on the Economics of Music Streaming and 2021 Royalty Data
spotify.com. – Pick Your Premium