Infiniqe Marketing

Spotify Marketing Strategy – The Real Game Changer

After the intervention of the internet in the world, the music industry has evolved. Looking back to 2006, people didn’t have many options for listening to music, they have to either buy CDs or internet radio which was quite expensive. 

Getting frustrated by the limitations of music, Daniel Ek and Martin Lorentzon started Spotify, aka the real game-changing music startup. Spotify is a renowned Swedish premium music streaming company founded on 23 April 2006. As the years passed by, Spotify only made a profit till now. As per the quick stats, Spotify have 440 Million active users in 2021, a total combined of Amazon music & Wynk.

Spotify has 70M+ paid users worldwide on the board who happily listen to music, even after paying money. Spotify has dominated the music industry market from a 7% share to a tremendous 83% by the end of 2020.  

After reading the stats, a question must have popped up in your head, ‘why is Spotify so successful? ’Well, let us go through the success strategies of Spotify. 

The Key takeaway Marketing Strategies From Spotify

  1. Freemium model 

The utmost vital reason behind the success of Spotify can be attributed towards its freemium model. Earlier when the internet dropped out of the sky, illegal downloads were a common thing, and no user wanted to pay for them, but Spotify changed the outlook and created a free listening option for users. By making free music accessible to people, this Spotify’s one of the first & foremost reasons behind its success. With Spotify’s freemium accessibility, the referral rate Spotify went from 0 to 100 quite quickly.  

The premium model of Spotify plan pricing is also pretty affordable. The pricing starts from a minimum of ₹119 for 1 month. Spotify also provides subscription plans for 1 day, 7 days, and 14 days at economical rates.

  1. Meme & Emotional Campaigns

Around 2013, Spotify started facing major competition from Apple & Amazon music, Spotify played one of the best conversion cards in the book. After a few months, spotify launched  the #thatsongwhen campaign that encouraged Spotify’s users to share their emotions and memories connected to their favourite songs. Not only this campaign got a lot of engagement rate but also spiked to 8 million paying customers.  As a music streaming app, emotional marketing is a perfect way to build strong connections with users. 

When most brands forget about the importance of emotional marketing, Spotify took advantage and made emotional marketing the backbone of its marketing strategy. Besides emotional marketing, meme marketing is one of Spotify’s strongest suits. What’s the better tool for targeting millennials & gen-z than meme marketing? Well, we agree now.  

  1. Diverse Artist Collaboration

Artist collaboration & influencer marketing is the core of Spotify’s marketing business plan. Collaboration with known influencers not only boosts Spotify’s visibility but also helps in creating popular content for people. Apart from artists, Spotify also coordinates with brands such as Starbucks, Vodaphone and Netflix to cross-pollinate the audience. Apart from great artist collaboration, spotify allows users to visually see BTS of music or the original work of famous artists. 

Since the beginning of spotify, Daniel Ek and Martin Lorentz believed in influencer marketing. In the first few years, the owners of spotify reached out to a Swedish influencer for reviewing their app online and with a clap, spotify had a massive amount of users. 

  1. Optimum Utilization Of User Data 

Spotify creates personalized playlists for every different account user. According to a survey, 17% of playlists played on Spotify are curated or recommended by Spotify. These playlists are made by noting users’ listening behaviour, by collecting data from its 350+ million users, Spotify sends targeted ads to consumers. All it requires Spotify algorithm & regular listener for spotify to create target ads. 

  1. Targeted Ads 

The Spotify Al is at its best, Whether you’re looking for old Hindi songs or trendy TikTok songs, Spotify designs personalized ads by conceptualizing the retrieved data from the data collected. In marketing terms, Spotify implements the data-driven strategy. Spotify is talked about mainly because of its creative ad concepts. Consistent branding is more than its meets the eye. 

Spotify understood this opportunity & started presenting ads after playing just 3 or 4 songs, with no skipping alternative even after shuffling. Targeted ads + emotional marketing = one step closer to success. Repeating ads after a  few songs remind users surely consciously or subconsciously about the offers. 

  1. User-Interactive Design

Minimalist UI & UX design can take you on longer roads than one can imagine. Just take, Spotify for example, With an interactive & easy to design Spotify has created an enlarging number to its side. The app attracts its target millennial & Gen-Z audience by keeping bright colours theme & user-friendly themes even on a premium account. 

Even at the time of ads, there are no popups just great interactive audio that let you burst out of the bubble. Revamping customer experience should be the brand’s first priority. 

The New Dooming Upgrade – ‘Your Wrapped Soundcheck’

On 28th November 2022, Spotify announced the new feature that will allow personalized messages from their favourite artists. The most supportive fan will be rewarded with a personalized video message from their favourite artist and a wrapped experience for using Spotify. give This upgrade will be made jiffy, with a bundle of new & exciting upgrades. 

Will Spotify this feature will shoot up more Spotify Craze among people? 

Let us know in the comment section below! 

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