Spotify Introduces Conversion Metrics for Performance Tracking


  • Spotify has added a conversion metrics feature to its programmatic platform to allow marketers to track the performance of their ad campaigns better. The streaming music service has more than 207 million users all over the world. With the new tools, artists will be able to monitor how their campaigns are working and adjust them for the future.

  • The metrics show the record label how the listener is responding to an ad, or whether they hear the featured music tracks. Advertisers can compare the performance of ads for new listeners to know the number of people who save music to the library or add them to their playlist.

  • The new metrics are part of the platform’s Ad Studio that was released two years ago to help the marketer reach listeners on the ad-supported service. Over 116 million people all over the world listen to music for free on the service instead of on buying the premium version.


Spotify makes most of its money from paying subscribers. However, the streaming platform is working to make money off podcasts and music from non-subscribers who prefer to interact with audio ads and banners on the desktop and mobile apps. The conversion metrics introduced to the app will make the platform transparent to labels and artists who will be able to see their ROIs and drive listenership. Since the platform pays the content provider based on their streaming numbers, boosting the number of people listening to music is an integral part of getting paid and publicizing an artist to make money off live performances.

The new metrics are said by the company to bring with them a positive marketing experience for marketers who tested the tool. Wavo, the marketing agency, found that 38% of all the people who interacted with an ad by Rich the Kid listened to the music. Close to 20% of the listeners who streamed the music for the first time, did so after responding to an ad.

‘We are getting to find out not just how our campaigns are doing in their streams, but also how listeners interact with a particular artist and how to turn them into fans after they add a song to their playlist,’ says Conor Clarke, the CEO of Wavo.

The efforts by Spotify make the platform appealing to advertisers which is just as well because the company is facing competition from Apple Music. Apple does not offer ad-supported free listenership, but it recently overtook the platform in the paid subscriptions category in the U.S although Spotify still leads, globally.

Spotify recently filed a complaint against Apple with the European antitrust authorities accusing the giant or ‘intentionally limiting choice to stifle innovation’ in App Store. Apple typically takes 30% off the first subscription year’s revenue and 15% from subsequent years. App developers like Fortnite find such fees to be anti-competitive. Meanwhile, last year, Netflix stopped letting users pay for a subscription in the iOS app. Instead, new subscribers make direct payments on the website to help the company make more money as opposed to giving it to Apple.

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