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Big firms first to exploit Spotify’s new service

Spotify has started rolling out its video ads formats and the world’s biggest brands have been the first to jump on board.

The formats, which the digital music provider states offers brands an exclusive level of service to cater to engaged audiences, operates across both desktop and mobile platforms. Offering sponsored sessions that users can decide to engage with  or not, the likes of Coca-Cola, Ford, and McDonald’s are among the first to sign up.

The first format, on Spotify’s mobile platform, presents listeners on its free version a choice. They can either choose to watch a video from one of its sponsors in return for half an hour of ad free music, or carry on listening for free with regular audio ads interspersed among the tunes.

The second format on the desktop version is a ‘takeover’ approach. When the application is maximised and being used, videos will play to the user. If not being actively operated, or if the device is minimised, audio only ads will play, minimising the cost to the sponsors.

The service will not run in the free browser player.

Other early sponsors launching the service with Spotify include NBC and Cadbury’s parent company, Kraft.

Here at Pressroom, it is understood that Spotify has attached a premium price to the advertising format. It is going to be offered to all brands at some point next year, however it is not clear whether the pricing policy will be amended to attract smaller firms.

It is being touted as a premium product though, with a spokesman for the brand saying that the price is currently reflective of that.

Although written content is still a sales driver, the present trend for advertising in the digital marketplace is clearly with video. Mobile too is a large growth sector and, with the two formats converging effortlessly, it is an area that advertisers are investing more and more heavily in.

John is every inch the wordsmith and loves a game of Scrabble above all else. With experience writing for newspapers, John’s time at university was spent studying Creative Writing – something which comes across in his love of the pun.

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