Contiki, a travel brand, utilized the newly rebranded Spotify Ads Manager for a campaign that resulted in a 267% boost in website clicks.
Summary:
Spotify has rebranded its self-serve ad platform from Spotify Ad Studio to Spotify Ads Manager, according to details shared with Marketing Dive. This rebranding introduces a refreshed look and enhanced advertising capabilities.
The new features include a simplified user experience, improved audience and targeting functionalities, and an expanded menu of interest segments. Additionally, new ad formats aim to help brands engage consumers with video.
Several advertisers have already utilized Ads Manager, including the travel brand Contiki, which ran a campaign through the platform and achieved a 267% increase in clicks to its website, according to release details. This latest move from Spotify comes after a record-breaking second quarter.
Spotify is aiming to bolster advertiser investments by introducing a new look and enhanced capabilities, making it easier for brands to connect with the platform’s 626 million monthly active users. This initiative follows a strong second quarter for Spotify, which saw record profitability and a 13% year-over-year increase in ad revenue.
Spotify Ads Manager now includes improved targeting and audience capabilities, such as an expanded menu of interest segments that will be available later this month, providing brands with more opportunities to reach and test different audiences. Additionally, Spotify will launch an Audience Manager tool, offering a dedicated space for advertisers to manage their saved audiences. Audience Manager will first be released in closed beta, with a general release planned for 2025.
Spotify has recently introduced new ad formats to Ads Manager, aiming to help brands engage consumers through both audio and video. The Canvas format acts as an optional companion and visual asset, extending the popular looping visual feature that plays during songs to audio ads. With the Opt-in Video format, brands can be prominently displayed alongside the music a consumer is streaming.
Brands like World Rugby, Ionos, and Monge are already utilizing these new Spotify offerings. Contiki recently used Ads Manager in the U.K. for a campaign aimed at encouraging Gen Z travelers to join the company’s travel programs. This campaign featured a mix of audio and video ads showcasing user-generated content and real travel stories, resulting in Spotify outperforming other channels by 32%, according to release details.
Spotify reports having made “significant” investments in its Ads API, which will eventually extend Spotify Ads Manager capabilities to over 50 new markets. On the measurement front, Spotify has introduced first-party measurement solutions within Ads Manager, such as Spotify Ad Analytics and Pixel. The company has also expanded its third-party solutions through partnerships with Integral Ad Science, DoubleVerify, Appsflyer, and Kochava.
In the second quarter, Spotify reported a 21% year-over-year revenue growth, along with record-high operating income, gross margin, and free cash flow. The company also saw its premium subscribers increase by 12% year-over-year, reaching 246 million. This positive quarter comes after a challenging period last year, during which Spotify laid off over 1,500 employees, or 17% of its workforce, in December.
