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How Does Spotify’s Ad Manager Work?

As the work-from-home era continues to become the norm, Spotify has launched a new ad manager, Ad Studio. Introduced last year as a limited beta, the new ad manager was released in 22 markets earlier this month. It uses audience segments and various targeting options to deliver your message to the right audience.

Interest-Based Targeting

Interest-based targeting can reach specific audiences based on their recent streaming behavior. Interest categories include genre, playlist, and platform preferences in the Spotify ad manager. Interest-based targeting is particularly effective when a brand tries to reach an audience with shared interests. Spotify allows advertisers to select multiple interest categories so that their ads can compare people more relevant to their message. You can also target based on interests, location, or even a combination of these criteria.

Aside from that, you can target your ads based on listening habits, and devices and choose to target ads by podcast genre or playlist category. Spotify will also allow you to target ads based on your customers’ past interactions.

CTA cards

For advertisers looking to increase the effectiveness of their podcast advertisements, the new feature of Spotify’s ad manager features CTA cards. These cards are highly customizable and include images, text, and clickable buttons. These cards are intended to give listeners a visual cue about the product or service they’re promoting. They will appear at the end of an audio ad and will continue to show up on suitable locations on the platform up to seven days after the initial ad is played. The introduction of CTA cards brings podcast ads closer to traditional advertising techniques. The new feature allows advertisers to present a call-to-action option alongside their podcast ads, enabling listeners to click through to the brand website or relevant product page. These ads will appear alongside podcast episodes when they’re played and remain active for up to seven days. However, the feature is not available for all podcasts, so brands should be sure to test it before spending their money.

Targeting users based on their behavior

While ad formats like Video Takeovers and Sponsored Sessions have made advertising on Spotify much more accessible, the company is now taking it to a new level by offering Playlist Targeting. This new feature will enable marketers to target users based on their music taste, mood, and activity. Spotify’s ad manager will help marketers create a campaign to cut through the noise and make their message stand out.

With the help of the Spotify ad manager, marketers can create and place ads that cater to the interests of specific audience segments. The platform offers three audience targeting options: Interest-based, behavioral, and general. In addition, Spotify allows marketers to select one additional chance for audience segmentation based on their recent playlist or podcast listening. They also have the option to choose one other ad format to target a broad audience.

Maximum budget

To advertise on Spotify, you must have at least $250 to spend on your campaign. Spotify uses a formula to determine the cost per ad served. You must target more relevant listeners and spend less money on untargeted ones. The software will estimate how many ads will be done within your budget, and you can increase this number if you wish. Spotify has a minimum spend of $250, but you can spend more if you want.

You must spend at least $250 in your local currency to advertise on Spotify. There is also a bidding system in place, which may affect the cost of your ad. The competition for your target audience size will influence the amount you can spend, but there are some limitations. You can test out ads in the trial period before committing to spending more money. The maximum budget for Spotify’s ad manager is $250.