Spotify have revealed more about their upcoming tool that lets artists and labels pay for targeted ads to boost streams.
Spotify have been testing a feature that lets creators and their teams pay for targeted ads in a bid to boost streams. They hope that using a tailored system to present the music to people they think will be interested based on their algorithms, they can naturally present new music with a new ad scheme.
The pop-ups present a user with the message “Brand new music for you!” as a targeted recommendation. It’s a unique opportunity for artists and labels to not just pay for promotion on the platform, but to have their music advertised in front of listeners who are the most likely to enjoy it making each advert more worth the cost.
Much like their Discovery Weekly and Release Radar playlists, Spotify will use a combination of listeners tastes and human curation to present music to the best audiences. They are presented in a full-screen recommendation for users where they can simply click and listen.
Rolling Stone have reportedly received a pitch for the new platform which they’re calling ‘Marquee’. They’re saying it will cost $0.55 per click from a listener, and Spotify are reportedly recommending a minimum $5000 ad spending.
As Spotify are still running without a profit margin, the streaming company have been looking at ways to enhance their revenues. For the past few years they’ve been working on transitioning free users to paying users. Unique advertising that allows creators to pay more for better reception could be a great way to boost revenues.