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Strategy Campaign

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Emma Birch

on 21 October 2013

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Transcript of Strategy Campaign

Online Campaign Strategy: Spotify

Contextual Overview
Evaluation of Past and Current Goals
Digital Marketing Strategy
Social Media
owned media:
- Facebook, Twitter, YouTube
- messages: encourage sharing and following
Paid media:
- Facebook Ads
- Banner ads: YouTube, Radio stations and Music festivals
(PPC cost basis)
Earned Media:
- Positive WOM
- Facebook shares/ Twitter retweets
Partnership With Vodafone
The Music Industry
- Digital music streaming growth
- Licensing and content acquisition fees
- high market saturation
- threat of new entrants
- low profitability

Pandora - the key competitor:
- 87% of all revenue was attained through advertising and only 13% through subscription services
- Spotify's revenue structure is comparitively more subscription based
The Pricing Models
- most of the leading firms use a freemium model
- Spotify uses this model effectively. offering 3 services:
Past Goals
- To Motivate consumers to use Spotify over competing Companies e.g. iTunes or Pandora
- To encourage users to switch from Free to Premium
- Provide an alternative to illegal music downloads

Evaluation of Success
Past goals focused on gaining market share with Europe
Profitability has not been a primary goal - they are operating at a loss
Ranks second after Pandora (its main competitor)
Facebook Followers: 3.8m
Twitter Followers:
@Spotify: 590,000
@SpotifyCares: 12,906
Total Users: 24 million
Paid Users: 6 million

Encourage consumer interaction and engagement

By Emma Birch, Adelaide Goddard,
Cooper Patton and Alice Davidson

Present figures
Target Market
18-30 year olds
Tech savvy
Music lovers
Active lifestyle
Targeting new and existing users
'Socially aware' and 'look at me' segments
Campaign Tactics
Social Media
Partnership With Vodafone
Increase Spotify’s Australian user base by 25% by December 2014.

Increase the amount of user to subscriber conversions by 10% by December 2014.

Budget and ROI
Referral Program:
Celebrity Endorsement:
CTR 50% of those who liked/re-tweeted post

‘We want to connect millions of people with their favorite songs and create a service that people love to use...Music brings people together. That is why Spotify is so social"
Motivate customers to share playlists and to follow friends, artists and celebrities
Acquire new customers and encourage existing customers to upgrade through a digitally based marketing campaign underpinned by the social nature of Spotify’s brand personality
Monitor progress via HootSuite:
5000 phone deals per week
Quarter of these users to convert to subscribers
Track queries and reviews on
for positive/negative consumer affect
Sales benchmark:
The Social Spotify Network
Celebrity Endorsers
Celebrity Endorser
Tame Impala
Facebook: 490,000
twitter: 100,100
Facebook: 382,000
Twitter: 324,000
Referral Program
- Previously Implemented in the US
- Australian referral Program:
- refer 3 friends via social media
- receive 1 month free premium (after trial month)
- all parties benefit
--> leads to WOM
--> increase traffic to social media pages
--> increase customer base
--> brand loyalty
- low ROI at campaign's end
- expected future improvement
- December 2014:
expected revenue: $746, 200
expected expenditure: $652,378

Overall camapgin ROI: $93822
Thank you
Telecommunications bundling strategy similar to Deezer & Orange's partnership
Applying 'freemium' model into partnership = flexibility to opt in & lowers fixed cost for service contract
Partnership will function on a multi-attribute model
Full transcript