how spotify is trying to cut down on the number of ads
Spotify has recently begun to experiment with removing ads from the platform. According to a recent article in The Verge, the streaming service plans on testing new ad-free models with brands like Nike and Volkswagen. The company also wants to reduce ads on its free tier by 50%.
Spotify is testing a [new/one] subscription model for varying levels of brand content. An ad-supported free tier for users to sample the service will not be affected by these changes, Kevin Brown, Spotify’s head of publisher solutions, told The Verge.
“What we’re hearing from partners and advertisers is that they value having the choice and flexibility to reach their audience in different contexts,” said Brown in a statement.
The most recent push for a subscription model is not the first time spotify has experimented with these types of models. The company has previously tested one-month, three-month and six-month trials for its paid tier.
Spotify already has a huge volume of users across its free, ad-supported and premium tiers, so any changes to its pricing model will have to be geared toward the right groups of consumers.
“We think everyone’s [paying] too much,” Brown told The Verge. “Consumers are overpaying. They can get access to this stuff cheaper. And they value their time more than the money they’re spending.”
Spotify says that it is testing many different models at once, and will have a full-year subscription for readers of Kind Media’s Music Tech Summit in November.
how users are reacting to this change
Spotify’s plan to reduce the number of ads on their platform has been met with some skepticism by users. Spotify has a subscription business model, and the majority of their revenue is based on these subscriptions. The company must maintain a balance between paying subscribers and ad space to ensure profitability. Cutting down on ads could have a negative impact on Spotify’s revenue.
Spotify has launched a “restrictive” new ad policy that may not directly affect you, but it does have the potential to affect your personal playlist.
The change affects users who have specifically opted in to receive ads. As of Dec. 15, users can opt out of receiving Spotify’s targeted advertisements by selecting the “Ads” checkbox on the Spotify Community page. However, opting out does not remove all ads from your playlist, only targeted advertisements will be removed.
A Spotify representative said that “The new ad setting should not affect anyone’s personal playlists, but we want to make sure you know about the change.”
Ad Targeting
Spotify’s new ad policy targets users based on their listening history. The company says it will improve the quality of its ads by basing them on a “unique user profile” rather than only showing them to similar users. The most common way Spotify targets music listeners is via radio advertising.
