Spotify has begun testing a new type of ad in Discover Weekly, its personalized playlist of music that’s the streaming service’s flagship feature. The company says that, for the first time, it will allow a brand to “sponsor” this playlist as opposed to just running ads. It believes many advertisers will be interested in this opportunity due to the playlist’s ability to reach heavily engaged Spotify users, and because it allows advertisers to “own the personalized listening experience” on Spotify.
According to Spotify, Discover Weekly listeners stream more than double the amount of users who don’t listen to the playlist because of the personalized experience it offers. That will make the ad product more compelling, compared with brands’ existing ability to sponsor other editorial playlists on the service.
With Spotify’s Sponsored Playlist ad product, brands can surround Spotify’s free listeners with audio or video messages in ad breaks, and gain Spotify’s help in building a collaborative marketing plan.
Microsoft will kick off the launch of branded ads by running an A.I. ad campaign called “Empowering Us All.” This will explore A.I. across sectors like¬†Education, Healthcare and Philanthropy. Spotify says it was a good fit for the launch, as Discover Weekly is customized