A Simple Breakdown of Spotify Ad Targeting

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Spotify is taking ad targeting to the next level.

The most dominant streaming music service Spotify is adapting the way they think about digital advertising and media with the programmed ads that they play for their free members. They are putting out hyper-targeted ads now because they’re looking to add a new layer to the way they do business.

Obviously, Spotify isn’t just dishing out the the same ads to large swaths of their listener base like a traditional radio station or even network might. The idea here being that you can limit the amount of ads that fall on deaf ears. This is much more of a targeted approach than a wide net approach and may be setting advertisers on a path to resolving an age old issue once summed up by department store magnate John Wanamaker: “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”

Here’s a simple breakdown of how the targeting works. The user who signs in to Spotify starts listening to music, creating playlists, and engaging in other activities that begin to form a digital identify that Spotify can use to target them. The music they listen to and playlists they create are all used to create an ad profile for the person who is listening, and then they get the ads that would be most helpful for them. People don’t generally like their music to be interrupted by advertising but Spotify has been able to cultivate a large and loyal free user base. Perhaps this is a result of the fact that they don’t barrage people with ads that are totally irrelevant or even irksome to certain individuals.

In short, people don’t mind ads that make sense for them quite as much. Who knew?

Personalized Social Media Targeting

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Reaching an audience on social media is only the first step.

Living in the digital age has major positives compared to the previous decades of the 80s and 90s. Though this style of marketing has been around for quite sometime, the past 15 years has experienced an explosion as most companies tend to do much of their business online. Marketing with the use of digital technology such as display advertising, computers, cell phones, and other forms of digital media has made it possible to reach the most amount of consumers in half the time. This is a great way to get your name out to the public, but in marketing you most know who your target audience is. Understanding what’s new, what’s next, and what’s hot gives companies a better understanding of the market and what trends are popular. Here are some of the hottest trends currently in 2016 which can help your business stay out of “the red.”

Affordable Social Media Marketing

For any company or business, selling your products and services is the end goal. Whether you know who specific target audience or not, reaching the masses gives you a huge advantage over the field and social media works perfectly for achieving this. Platforms such as Facebook, Twitter, Snap Chat, YouTube, or any other media site can give your brand total exposure. Just think, your company has it’s own social media account with it’s own customer base. You can now directly reach all of your customers/clients by just posting updates, deals, specials, and important information. The benefit of this action is that it saves time and money since most media sites are free of charge for use. Not only do you reach your target audience directly, any of your customers friends or followers are being exposed to your products/services. Everything is connected on social media. With this new exposure, your brand can and will pick up new subscribers without you ever having to spend a dollar on extra advertising. It’s genius! Social Media has changed the game drastically from an advertising stand point and growth will continue well into the future.

Personalization

So if the above seems like a no-brainer, that’s because it is!  The key to effective social media marketing in 2016 is personalization.  This aspect of SMM is what any marketer worth her salt should master to stay out in front of the industry.

So where to start?  Now that you have your customer base set up, you can begin to market specifically to those individuals. This is called personalization as you now know exactly what products to sell each person. Personalization is a tailored style of marketing. Most forms of advertisements can oversaturate a customer, especially if the products/services aren’t what the customer wants. Personalization offers the customer what he/she wants from the past experiences of what the customer has already purchased. Your business can automatically send personal emails to each customer based on their previous interactions with the business. This action builds a strong relationship as well and makes the customer appreciate your brand even more.

While this is a strong SMM outreach approach, you’ll want to make sure you’re balancing your aggressive strategy with organic social content that your brand’s followers find useful.  Overdoing it is a great way to alienate your loyal customers which could land your business in a worse place than where it started.  Research things like the types of social content that your target customers consume, which social network they interact with the most, and marketing email open rates in your sector.  This will help you create a tailored strategy that doesn’t bombard your organic followers with content that could be perceived as constant advertising.