Spotify

Spotify Case Study

2,800+

Premium Users

$182,000

Monthly Revenue

$65

Cost Per User

11.5x

Return on Ad Spend

Company

Spotify

Industry

Music and Audio Streaming

Duration

75 days

Budget

$182K

Objective

Targeted existing user bases and lookalike audiences to drive premium conversions through custom audience optimization and subscription-focused retargeting.

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Campaign Overview

Spotify, the global music streaming platform, sought to convert free users to premium subscriptions while attracting new music enthusiasts seeking enhanced audio experiences. With a $182K campaign budget over 75 days, the campaign targeted music lovers, podcast listeners, and audio content consumers across global markets.

Strategy

Spotify leveraged Blockchain-Ads to expand their premium subscriber base across global markets while emphasizing personalized music discovery and ad-free listening experiences.

Audience Targeting: Targeted SaaS subscribers and AI tool users aiming to reach audiences familiar with subscription-based digital entertainment platforms and premium content services.
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Created Custom Audience Segment: Utilized 1st Party Audiences to re-engage existing free users with premium conversion campaigns and Lookalikes to find similar high-value music streaming prospects.

Ad Creative Strategy: Developed personalized content showcasing Spotify's recommendation algorithms, Discover Weekly features, and exclusive podcast content to demonstrate the premium subscription value proposition and differentiate from competitors.
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Campaign Optimization: Implemented A/B testing across demographic segments to maximize conversion rates while emphasizing ad-free listening benefits and offline download capabilities for mobile users.

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Results

Total Impressions: 38.9 million across music and entertainment platforms
Total Conversions: 2,800 verified premium subscription conversions
Total Revenue: Generated $182,000 in monthly recurring subscription revenue

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Inactive-State

Active State

Execution

Custom Audience Strategy: Leveraging 1st Party Audiences ensured campaigns reached existing users most likely to convert to premium subscriptions, maximizing conversion efficiency and lifetime value.
Lookalike Expansion Excellence: Utilizing Lookalikes based on high-value premium subscribers enabled discovery of similar music enthusiasts, expanding addressable audience while maintaining conversion quality.
Subscription-Familiar Targeting: General Subscribers targeting reached audiences already comfortable with digital subscription models, reducing onboarding friction and increasing trial-to-paid conversion rates significantly.

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Insights & Learnings

Spotify's premium subscriber acquisition campaign demonstrates effective custom audience marketing through 1st Party and Lookalike targeting optimization strategies. The combination of existing user re-engagement and lookalike expansion enabled exceptional conversion while building engaged music communities. This approach proves music streaming platforms can drive subscription growth through data-driven audience strategies that leverage existing user insights and behavioral patterns.

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