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Spotify's Marketing Strategy

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Christian Bendeck

on 18 March 2013

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Transcript of Spotify's Marketing Strategy

Spotify's marketing strategy Hello America. Spotify is here Spotify intended on letting Americans know what they were missing with their headline 'More than 10 million Europeans can't be wrong surely?' Spotify founders setout to develop a legal, more convenient alternative to music piracy in a country where piracy is rife. They wanted to make it known that Spotify is the largest & fatest growing service of its kind, which was getting extremeley popular in Europe.
When Spotify finally announced that it's service would to be made available in America, it was an exciting time for the company as it a chance to tap into a huge market. America became the 8th country to have Spotify available to the public. In doing so Spotify took a further step to achiving their goal - to make the worlds music available instantly, to every user whenever & wherever they want it across the globe. 'Spotify Has A New Freind' Spotify for iPad After the iPhone app was released, Spotify users wanted an app for iPad & thats exactly what Spotify gave them in may 2012. The app made it even easier for users to enjoy Spotify's 20 million song catalogue on the move as well as on a bigger screen. Like the iphone app, the iPad version was made available to premium users only. Non premium users can sign up to the 30 day trial to try out the app. this is a good marketing method as some iPad owners may not be premium users, the trial invites them to purchase the full version after the 30 days are up. Spotify Now Available on App Store In september 2009 Spotify announced their app for iPhone & iPod touch to be available on Apple's app store. The app was made available to premium users across Europe only. Previously Spotify was only available on desktops but now premium users could enjoy millions of tracks on demand wherever they went. Updates from the desktop version of the application would sync instantly on the user's iPhones & vice versa. With more than 315 million iPhones sold worldwide since its release, Spotify has made their app available to millions of people who use iPhones around the world, so they can access their saved playlists & mllions of tracks on the go. This is a great marketing method as Spotify recognise that iPhones are extremeley popular worldwide. Furthermore, by making the app available only to premium users, this invites free users who want the access their music on the go, to become paying customers of the service. Spotify & Facebook is a perfect match. In september 2011 the 2 joined forces to help facebook users discover more free music than ever before. Facebook is used by millions of people worldwide on a daily basis, people also listen to music daily therefore it made sense to marry the two together. Before Spotify, no music service had the idea to make music streaming social. Since the two joined forces, More than 1.5 billion songs have been shared on facebook so far.
This is another great marketing method from Spotify - being associated with one of the biggest companies in the world with more than 1.06 billion monthly active users and 680 million mobile users also opens the oppurtunity to introduce Spotify to new users through Facebook. 30 Day Free Trial Spotify E-cards Spotify & Coca-Cola Announce Partnership Spotify for Android Spotify offer promotions & free trials to their premium service. They are currently offering a 30 day free trial to try out the premium version. This is a great marketing method in a bid to convince free users to become paying customers, it entices free users to want to take their music on the go & in order to do so the user has to pay for a subscription. With more than 6 million paying subscribers, It seems that users are willing to pay for the convenience of portable accessibility with no ads & the availablity to stream millions of tracks offline without an internet connection. This also invites non- subscribers to sign up to the 30 day premium free trial, giving them the premium experience as soon as they join. In June 2012 Spotify released their second mobile app this time for mobile devices running the Android operating system.
As we now live in a global digital world where more & more people are purchasing smartphones, it was a no-brainer for Spotify to reach out beyond apple devices. With more than 500 million Android devices activated worldwide, this opens up Spotify to millions of new customers.
Spotify also made radio streaming available for android devices which is a great incentive & adds yet another feature to the Spotify service.
As with all Spotify mobile apps, android users need a premium subscription to get their music on the move. Recently Spotify also made a version for smart TV's.
With Spotify's service available on PC/Mac, iPhone iPad, Android & now Smart TV'S, Spotify are making sure that they are covering all markets. NUS students get 50% off Spotify Premium In April 2012 Spotify continued to build relationships with global companies & got together with beverage giant Coca-Cola. The idea behind the partnership was to give Coca-Cola's consumer's around the world, universal access to the music they love through a social experience.
Coca-Cola is the most recognized brand on the globe as well as the largest beverage company with more than 200 countries enjoying beverages at a rate of 1.7 billion servings a day. Under the partnership Coca-Cola intergrated Spotify into its Facebook presence giving them massive exposure. The partnership takes advantage of Spotify's existing relationship with Facebook with Coca-Cola's facebook page having over 60 million fans, Spotify's name will reach millions of people.
Coca-cola & Spotify also unveiled an app for the 2012 London Olympics & gave the chance for independant devlopers to build the app in a 2 day event called 'Hackden' in New York City. This is another great marketing ploy from spotify as the Olympics was extremeley popular & gives them the chance to reach masses of people through the app.
Partnering up with one of the worlds most valuable brands creates a unique customer experience that is driven by music in both new & existing Spotify markets. Labrinth tries Spotify for iPad Spotify invited electronic artist Labrinth to talk about the new iPad app in this promotional video. In the video Labrinth talks about why he loves new app, he mentions he likes to listen to music on a range of devices whether it be on a tablet, laptop or smartphone. Being able to enjoy music across different platforms is exactly what Spotify want their users to experience. He also mentions how easy it is to interact socially with his fans using social networking sites alongside the app. As well as the ease of use of the user interface & being able to share playlists with his mates.
Getting Labrinth to promote the app through this video is a smart move by spotify as there is a current surge of interest in electronic music in mainstrem culture. Labrinth has had chart success with smash hit 'Earthquake' peaking at number 2 in the charts & number 1 hit 'Beneath your beautiful' featuring Emeli Sande. Spotify got together with the national union of students to offer UK students premium subscriptions for half price. This is a great offer from Spotify with more than million students in the UK it is sure to increase the popularity of the service & give students around the country the chance to enjoy over 20 millions songs wherever they go. Spotify E-cards provide the gift of unlimited access to Spotify's music library with no ad interuptons. The gift also allows the use of Spotify on smartphones & the ability to take playlists on the go with offline mode just like Spotify premium. The gift card amounts range from 1 month for £9.99 to 12 months for £119.88, It is a great gift to give to family & freinds. The gift cards are a another good marketing method to spread Spotify's name to potential new users which afterwards may want to purchase the full version.
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