#BrandVue Spotify Marketing

Spotify: topping the UK charts and continuing its rise

By Abi Allard, Director in research, insight and consulting



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June 10, 2022 | 6 min read

Market research specialists Savanta's Most Loved Brands study breaks down the UK's most beloved media brands. Following a close look at the brands claiming the ten top overall spots, here they go deep on one entry from their media brands league table: fifth-placed Spotify. Abi Allard, director of research, insight and consulting at Savanta, investigates what brands can learn from the music streaming giant.

Savanta considers the evolution of Spotify as a marketing platform.

Savanta considers the evolution of Spotify as a marketing platform

In a world where everything is expected to be on-demand, it’s unsurprising to see that Spotify scores higher than more traditional audio platforms for brand love in Savanta’s Top 100 Most Loved Media Brands League Table. Unlike traditional radio stations or other audio outlets, Spotify offers a host of features that speak to the on-demand nature that we so desperately crave.

So, what can Spotify teach us about brand love and how can its success be applied to other media brands?

Spotify transformed audio listening forever when it launched in 2008, establishing itself as a new kind of music streaming service. Despite launching seven years prior, Apple’s iTunes, which provided a downloadable music service, never gained Spotify's streaming success. Instead, Apple launched its own streaming service in 2015: Apple Music, the closest like-for-like competitor to Spotify. It ranks 20th in our brand love list.

Apple dominates tech, but the brand has not been able to make the same waves in music streaming industry as Spotify (despite offering more songs). This illustrates the strength of an innovative brand; according to our BrandVue data, 21% of consumers believe that Spotify is an exciting brand, compared to just 16% for Amazon Music and 15% for Apple Music.

It’s not always possible to be a brand that breaks into a relatively immature space and challenges the competition, but establishing a strong brand image that innovates to meet consumer needs is paramount to success.

What’s the hype about personalization?

Consumer trends continue to point toward the need for personalization. 71% of consumers expect companies to deliver personalized interactions; 76% get frustrated when this doesn’t happen. McKinsey’s Next in Personalization 2021 Report shows that companies who excel at demonstrating personalization and customer intimacy can generate faster revenue growth than competitors.

Personalization has become synonymous with Spotify. The ability to curate playlists and expose users to recommendations based on listening habits sets Spotify apart from its competitors. It’s been reported that much of Spotify’s success is due to its sophisticated data collection, allowing users to listen to music around a particular moment, mood or trend, rather than the same over-used genres or songs. This is something that even its closest rivals can’t do and is lightyears away from more traditional radio stations and music platforms. A third of consumers (33%) believe that Spotify is for ‘people like them’, according to BrandVue, compared with just 17% for Apple Music.

Consumers are only going to demand more and more personalization within the media space, so the ability to tap into that through using sophisticated data collection is all the more important. Exposing consumers to content that they don’t even realize exists, but aligns with their preferences, without feeling intrusive, is key to keeping them engaged.

Podcasts are climbing the charts

It would be remiss to discuss audio listening without acknowledging the rise of podcasts. As of 2021, there are 19.1 million podcast listeners in the UK, with that number estimated to increase to 28 million by 2026. The pandemic has helped to boost their popularity, but it provides an opportunity to reach a new audience beyond music streaming.

There are believed to be 3.2 million podcasts on Spotify. Despite being the pioneers of podcasting, Apple fails to offer a similar product. Apple has a separate podcast app, going against the seamless experience we know to be so important to consumers. Not only does Spotify recommend music based on listening habits; podcasts too are curated.

Interestingly, on Spotify even Premium subscribers get exposed to adverts on podcasts. Media companies have been continuing to invest in podcasts and this provides a real opportunity to monopolize on Spotify’s captive, far-reaching audience. While the music streaming side of Spotify is difficult for advertisers to capitalize on, the rise of podcasts, coupled with Spotify’s continued success, provides a clear opportunity to get your brand noticed.

Spotify has experienced huge success and has stolen the hearts of consumers. It is well-deserving of its fifth place ranking in Savanta’s Top 100 League Table. It’s clear to see why Spotify has been successful, but what could you do to help your brand reach this level of success?

You can download Savanta’s BrandVue’s Most Loved Media Brands 2022 report here.

#BrandVue Spotify Marketing

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