How Much Does Spotify Advertising Cost in 2023?

With over 350 million active users, Spotify is the largest music streaming platform in the world. This means it's a powerful tool to reach a huge number of people with your message. However, only those who know how to use the potential of Spotify right can benefit fully from the possibilities this platform creates. If you want to become one of those people, keep reading.

These days, advertising campaigns surround us everywhere we go. More and more companies look for ways to invest their money in smart advertising that catches the attention of people and sticks out. Because of this, Spotify is an excellent place for this type of advertising campaign, promoting quick and memorable messaging for various demographics.

From this article, you'll learn about different types of Spotify ads, how expensive Spotify ads campaigns are, and how to set up such a campaign.

Types of Ads on Spotify

Spotify runs a few types of ads, most of which are in audio formats. Still, you can opt for video ads as well, depending on your campaign's goal and budget. Below are the types of Spotify ads you can choose for your advertising campaign.

Audio Ads (On All Platforms)

Audio ads on Spotify can be played between songs, as their length does not surpass 30 seconds. They are designed to reach your target audience on all platforms and devices, running anytime a listener is using the app.

Short recordings of your message are combined with visuals - an image that displays your brand's name, a banner with an advertising slogan, and a call to action button with a link that directs people to your website.

According to Spotify, around 60% of their users claim that Audio Ads help them discover new brands and products, which goes to show how effective this type of advertising can be. Additionally, 51% of Spotify Free users consider Spotify Audio ad campaigns more relevant since the advertising they receive is tailored to them.

With this being said, it's no surprise that Spotify's ad-supported revenue grew by 31% in the second quarter of 2022.

Sponsored Sessions

A Sponsored Session is an ad that plays before a block of 30 minutes of uninterrupted listening. This type of ad allows Spotify Free listeners to access content without any breaks in between in that 30-minute block.

Sponsored Sessions are granted to mobile listeners, and the ad itself follows the same guidelines as with audio ads - the video message can't be longer than 30 seconds, and it includes a URL to the advertiser's page.

Video Ads on Mobile Sessions

Spotify video ads on Spotify can take the form of short videos (up to 30 seconds) and be made specifically with mobile and tablet users in mind. The maximum size of these MP4 and MOV files is 500 MB.

This type of ad is played between songs and during commercial breaks, which gives you a great opportunity to convey your brand's message in a short and visual format.

Videos are hosted both in portrait (9:16) and landscape (16:9) ratios, and Spotify offers Branded End Cards where you can put your active link. All Video ads must include audio, and they can't contain black bars, leaders, or interlaced videos.

Overlay (Mobile and Desktop)

Overlays are displayed when users return to the app. These visuals can attract a lot of attention from Spotify users, as they are the first thing they see after opening the app. Ad format for Overlays includes clickthrough URL.

Homepage Takeover (Desktop)

Advertisers can also opt for Homepage ads displayed on Spotify's Homepage after opening the site or app (this is available only for desktop users). Homepage Ads are colorful, eye-catching, and quite literally bring your message to the front.

The ads contain links and are visible to the users in 24-hours segments. You can include videos in your ads, but this format does not support audio. You can use Spotify resources to create your Homepage ad that is both friendly to the users and will be accepted by the app. Overall, it's a really great way to gain some valuable exposure when you advertise on Spotify.

Banner Ads

Another similar form to a Homepage ad would be a Banner ad. Amongst all the visual ad formats Spotify offers, this is one of the most popular ones. One of this ad's most valuable qualities is that it never disappears from sight.

It's first visible to the users at the top after opening the Spotify app. Later it gets pushed to the bottom, so it never leaves the screen.

Leaderboard Ads

Leaderboard ads are somewhat similar to Banner ads, as they also appear in the form of a clickable banner. However, they are displayed for only 30 seconds at a time during an active listening session.

Users can see Leaderboard ads only when they are using the Spotify desktop player and the Spotify web app. This visual format can include an image or short animation (the length of it can take up to 15 seconds.) These ads are also clickable, allowing users to easily access your website.

Sponsored Playlist

Another ad type that can help you increase your brand recognition immensely on Spotify is a Sponsored Playlist. It's a fantastic way to target people by offering them what they are already looking for on the platform.

Reaching the right audience through music tailored to their taste is easy and effective. With support from Spotify, you get to select the most suitable playlists to place ads in. This type of advertising works on mobile and desktop, giving you a full range to target the right audience with your content.

Spotify hosts thousands of versatile playlists, allowing you to get the best background music for your campaign efforts. You can attach your brand's logo and different ad content to these playlists, and the great news is that your ad will always be displayed in the playlist queue, regardless of whether the ad's audio and video are playing or not.

Podcast Ads

It's also worth mentioning that many companies target fans of particular podcasts and enter partnerships with creators of those podcasts to be featured in the commercial ad breaks.

Podcast ads can be considered Spotify Audio ads, with the difference that they are acquired through paid partnerships with creators. If you're interested in this form of advertising, you should find podcasts that align with your brand's spirit.

Podcast ads can be incredibly successful, allowing you to reach new customers who otherwise would never be exposed to your ad, for example, because they pay for Spotify Premium.

This way, you can drive traffic to your website with the help of content creators who have the love and trust of their audience.

Spotify Ad Pricing

Ad pricing on Spotify, unsurprisingly, will vary depending on the type of Spotify ad, what demographic you're targeting, the length of the ad campaign, and the devices it will run on.

It's also worth mentioning that Spotify has a self-serve ad platform with various pricing models available, so both big corporations and small businesses can easily create and launch their campaigns.

How much do Spotify ads cost? The most affordable options start from $250. Also, thanks to the many free resources that Spotify offers to advertisers through their platform, Spotify Ad Studio, your costs for Spotify advertising can be substantially reduced.

Audio and video ads on Spotify run on an auction, meaning you can better control the budget of your Spotify ad campaign (for example, by selecting the maximum price you want to pay for the ads with a bid cap). Additionally, you get to adjust your Spotify campaigns in real-time to better reflect your goals and achieve more positive results.

You can expect to pay more or less for the Spotify advertisement, depending on the country and audience you wish to target. Usually, the more granular your targeting, the more expensive the ad will be.

What's more interesting, is that you can pay for custom solutions on Spotify. By working with the Spotify team, you can create and bring to life a campaign that is perfectly tailored to your needs and your voice. These solutions are more expensive, but if your ad budget allows it, they are worth considering. You can learn all about it here.

With the most affordable Spotify ads, you can expect the individual ad impression to cost somewhere between $0.015 and $0.025.

How to Set Up a Spotify Advertising Campaign

Like we've mentioned earlier, Spotify has its own self-serve platform - Ad Studio, which gives you all of the tools to create and submit your Spotify ads. You can benefit from the platform if it is available in your country.

Setting up your campaign is very straightforward. You need to pick your objectives, upload your ad audio, if you're choosing an Audio ad, or send Spotify your ad script to benefit from the free voiceover option. Then you need to select your target audience, set up your budget and schedule, and upload all the necessary materials, like the artwork, all the copy, headlines, and links to your landing page, etc.

The whole process is very easy. Spotify Ad Studio includes all the necessary information and various resources, so at every stage of creating your Spotify advertising materials and campaign, you have all the support you need.

Advertising on Spotify - Is It Worth It?

Every campaign bears its risks but also makes a promise. In the case of Spotify, the potential rewards look to outweigh to risks. This is primarily because you don't have to spend a fortune to set up a quality Spotify ad campaign and reach new customers.

Audio is as popular as it used to be, with Spotify being the largest streaming platform in the world. They offer you various tools at your disposal to create campaigns that reflect who you are and who you want to reach.

And thanks to the wide range of solutions for Spotify advertising, it's one of the easiest and more affordable ways to find new clients. You can reach many different demographics in many different ways, creating a unique experience for the listeners.

Of course, the final decision is yours, but in our book, Spotify advertisement is more than worth it!