Spotify encourages investment in video with Wrapped for Advertisers 2024

Audio and video streaming giant, Spotify, has released Wrapped for Advertisers 2024 – a spin-off of its viral marketing campaign, dedicated to its advertising clients as it continues to grow that side of its business.

Key takeaways for advertisers included the importance of investing in video ads. According to the report, advertisers that invested in video this year saw a 59% increase in reach, 89% increase in click-through rates, and a 33% incremental lift in conversion rates.

Additionally, campaigns with audio and video takeover, and sponsored sessions drove a 65% higher lift in intent than audio-only campaigns, highlighting how a combined approach could lead to higher engagement. Spotify users are engaging more with visual content with mobile in-focus rate in the US increasing by 38%.

This is especially true for gen Z, which saw a 55% increase in video impressions, making the platform an opportunity for advertisers to engage with this demographic. The report also showed a  53% uplift in user engagement when advertisers used  personalised playlists, and 63% increase in use of daylist streams.

This could mean more opportunity to invest in personalised playlist sponsorships, targeted moments, and creative advertising solutions available in the platform. Additionally, the report highlighted changing consumption behaviours from Spotify users, regarding the content they are most engaged with.

Parents, for example, are engaging more with celebratory and energetic activities with an increase in streams for dance parties (up 262%), karaoke (328%), and upbeat playlists (475%). US audiences are also streaming content related to sports on Spotify more than in other markets, especially tailgating (up 253%) and winter sports (145%), which suggests there is an opportunity for brands to invest in advertising across sports podcasts on the platform.

Gen Z are also consuming more positive and calming content with an increase in streams across playlists that are relaxing (up 354%) and happy (212%). This group is also using the platform  online and offline with a 23% increase in the use of blend streams in the US and 52% of playlists being created collaboratively globally.

Ed Couchman, Head of Sales, UK and Northern Europe at Spotify, said on LinkedIn: “Wrapped is finally here! And it’s not just for Spotify users. This year, Wrapped for Advertisers offers key audience insights and actionable takeaways for marketers, like how us Brits love providing listening entertainment for our pets.

“And for the first time ever, we’re also throwing our top brand partners into the mix with a Wrapped for Advertisers in-app experience! They’re receiving their very own personalised Wrapped, highlighting how their audience streamed on Spotify and how their ads performed on our platform in 2024.”