Spotify Delivers on Strength of Marketing, Partnership

Spotify Trumpet Spotify Delivers on Strength of Marketing, Partnership

Back in July, Spotify landed in the U.S. and quickly became a media darling as it represented a fresh approach to consuming music online. With a $4.99/mo basic package and a $9.99 one that included smartphones, the service became popular.

Spotify Reg 300x182 Spotify Delivers on Strength of Marketing, Partnership

Spotify now boasts 2.5 million paying subscribers bolstered from its U.S. launch, as well as a partnership with Facebook announced back in September. The Facebook deal has resulted in at least 500,000 new subscribers, and for Spotify it becomes more visible as your friends’ music listening activity now shows up in your news ticker. However, its requirement of new users to have Facebook accounts in order to sign up for the service, has angered many potential subscribers.

At Ipsos Vantis we tested Spotify’s early messaging campaign back in August as it entered the U.S. and its Market Success Score landed high amongst the music related offerings we’ve tested over the years ? at a score of 153.

Spotify MSS

MSS Spotify 1024x564 Spotify Delivers on Strength of Marketing, Partnership

Source: Ipsos Vantis 2011

We noted in the report ?

“Under its current pricing structure, Spotify shows a strong potential to succeed in the U.S.
It’s similarity to services like Napster and Rhapsody are likely main reasons why uniqueness scores were is low, but on the contrary the offering drives high liking at an exceptional value.”

We found that Spotify was not only appealing to young adults but also to middle aged audiences, and to both genders equally. Our Buzz Score measurements also showed that subscribers were apt to build organic word-of-mouth awareness generation going forward through their social networks.

Spotify CI

Spotify CS 1024x284 Spotify Delivers on Strength of Marketing, Partnership

Source: Ipsos Vantis 2011

The direct partnership with Facebook accelerates that activity. But we also cautioned that a Spotify that focused more on signing exclusives would limit its appeal. But the Facebook account requirement went forwards anyway.

Spotify continues to grow. It pushing out an app for iOS so that it can be enjoyed on iPads and iPhones, and it is rumored that another major partnership announcement may be coming on November 30th.

With both Apple iTunes Music Match and Google Music now out, and Amazon’s Kindle Fire on sale for the holidays, Spotify will need to turn up its marketing engine and extend to even more platforms; social and physical.

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