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Exploring the Present State of Online Radio: Spotify

Exploring the Present State of Online Radio: Spotify

When it comes to listening to your favorite music online, the landscape is always changing. As more people go online as a means to get their fill of their favorite tunes, the influence of streaming services continues to rise.

As we saw with the arrival of ads to voice-activated devices, audio platforms are ripe with opportunity for potential advertisers. In part one of our three-part series on online streaming services, all which are available through the Awlogy Total Audio Solution, we take a look at the reach and audience using Spotify as one of their streaming services.

Spotify: the leader of the pack

Spotify is currently one of the major online streaming music services. Founded in Sweden in 2008, Spotify’s steady ascent to the top of the music-streaming charts skyrocketed when it launched in the United States back in 2011. With over 140-million listeners, it has the largest audience of monthly active users compared to its competition on the market.

The popular online-streaming service hit another major milestone just a few months ago. In March, Spotify announced it had amassed 50 million paying subscribers. That’s significant growth for a service that previously had 40-million subscribers just as recently as September 2016.

The user base that Spotify attracts is a young one. The service has found a way to gain a grip among Millennials, capturing their attention in ways their competition hasn’t. More than 65 percent of Spotify’s audience demographic hails from the 18-34 age group.

So, what’s its secret? How has Spotify managed to reach and cater to young adults of this era? By integrating features such as the creation and curation of custom playlists, Spotify was the first online streaming service that proved engaging for its users. Creating connection with its youthful audience is what Spotify has been able to do better than the rest.

For potential advertisers, Spotify has the data to back up its engagement. In a November 2016 study, eMarketer found that Spotify’s audience was more likely to use the platform longer than Pandora’s. The data released last year showcased that Spotify users spend nearly twice as much time consuming audio content compared to users of Pandora.


There’s more good news for brands looking to expand its Millennial reach through Spotify. Users of the platform’s freemium service were surveyed and they are reported to feel twice as emotionally connected to brands advertising on Spotify compared to those who stream music elsewhere.

With an audience that’s consistently growing and a platform that’s engaging for Millennial audiences, Spotify would be a good investment for advertisers seeking a leg up in online radio.

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