Streaming music via services such as Spotify is worth $220m, according to a GroupM study.
The AdAge-reported figure is the key finding from a report conducted by the WPP-owned business and Spotify and will no doubt act as a cornerstone of their recently-struck partnership.
Formed in November, the tie-up between both parties spans data, insights, creative, technology, innovation and programmatic solutions in the hope that they can bump music streaming higher up on media plans. To that end, the report spotlights the breadth and depth of audience targeting that’s on offer now “more than 60% of streaming activity is done via mobile devices, and much of it can be linked to “moods and moments”.
It builds on the commercial pitch Spotify touted to advertisers in 2016, which focused on the idea that the streaming data is a proxy for a person’s mood and therefore the type of ad they would be susceptible to. Consequently, these “moods” or particular moments will account for $220m in new ad revenue across all streaming platforms across Australia, Germany, the UK, Sweden, France, the US and Canada, found GroupM.
"We're really trying to illustrate what we think are the new advertising moments, so these aren't substitutions of one media for another," said Simeon Duckworth, head of data and analytics strategic development at GroupM. "Moods and moments" is a general targeting opportunity that can be recognized across multiple media, "not just Spotify and not just streaming," he added. "The advantage of the WPP partnership with Spotify is that we can access and operationalize the data to realize this opportunity."