Ford Tests Ad Targeting on Spotify for Car Buyers


  • Spotify recently teamed up with Oracle to help people in the process of buying a car. The partnership between the streaming music service and the data cloud solutions allows the marketer to reach potential buyers.

  • Ford has started running ads that use Oracle’s data from predictive car audiences which maps over 1600 viewers from 120 million households in the U.S. The data points to Spotify users buying new cars at a rate higher than the national averages – 26%.

  • Data also gives insight into the kinds of vehicles the users will likely buy. Listeners were found to purchase economy, entry and compact cars 38% more than the average for the whole country. 24% more users bought luxury SUVs.


The car industry has been a reliable source of advertising dollars, and Spotify is looking to gain a more significant share of the as spend by working with Oracle to improve the way it targets. It is expected that carmakers will spend 24% of their advertising budgets on digital media by 2020, even though their overall ad spend will slow. Early data shows that users of Spotify are more tech-savvy and young adults at the prime age for getting a new car. They become a popular target group for the car industry.

The promotional activity that Spotify carries out aims at getting new paid subscribers, but the company also has a massive audience of users on the ad-supported, free service. The service brought in revenue of $200 million during the last quarter of 2018. The paid subscription brought in $1.5 billion. Spotify has more than 207 million users who are active on the platform. Ninety-six million of these users are premium subscribers while the rest use the ad-supported service. To make sure it does not lose money for streaming free content to unpaid users, the company might consider improving their ad sales by showing marketers that they can deliver relevant messages to audiences that are highly targeted.

Spotify has been facing serious competition from Amazon and Apple and has tried to boost its value proposition by running promotions with Hulu. This year, Apple Music surpassed the platform in the paid subscriptions in the U.S although Spotify is still topping the category globally. Apple music has over 28 million paid subscribers compares to the platform’s 26 million.

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