Spotify to start targeting ads by listeners location

Ad-funded music service Spotify is to start letting brands target its 250,000 UK listeners based on their location.

The on-demand streaming service, which has signed up 800,000 global users since its launch in October, has run a range of audio ad campaigns for brands including the COI, HMV, Nissan, Philips, Sainsbury’s, Sony Pictures, Vodafone and Xbox.

Spotify is now keen to build on this early success by adding a geo-targeting option, which it can offer advertisers based on the sign-in information members disclose.

MEC, Starcom, Universal Mccann and Zed Media are among the first media agencies to buy audio and display inventory via the application.

John Mitchell, sales director at Spotify, said it was vital to offer brands increased accountability and targeting.

“We’ll quickly start offering geographic as well as demographic targeting,” he said. “Agencies are very excited about the opportunity but the biggest hurdle is that it’s a new product and education is still required.”

Mitchell added there were no plans to extend the amount of advertising pushed to listeners – a maximum of a 45-second ad every 20 minutes – as maintaining a good experience was vital.

Spotify is also recruiting two sales staff for its London office, which opened in October, to keep pace with rising demand.

For more on this story see next week’s new media age (5 March)

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