Spotify's approach to building meaningfully different connections for relevant content

02 april 2024
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Leading the streaming market with Meaningfully Different consumer connections

From its beginnings in Sweden in 2006, Spotify has grown to become a giant of the streaming market. It now offers more than 100 million songs and 5 million podcasts on its platform, with over 550 million users across the globe. Spotify’s strong consumer connections are underpinned by its leading, high-quality platform and range of content.

Spotify MDS

Source: Kantar BrandZ, UK, USA, Sweden and The Netherlands, 2020-2023

Staying close to its customers with sophisticated data tracking and personalised experience

Spotify knows its audience arguably better than any other, creating 100 billion data points every day on user behaviour. This detailed tracking allows Spotify to personalise the user experience, reflecting interests and preferences in the content it serves. The brand also uses these insights in engaging marketing campaigns and its end-of-year ‘Spotify Wrapped’ curated playlist generates buzz and cultural relevance for the brand.

Justifying premium positioning thanks to sense of Difference

Spotify is perceived in a range of markets as a premium product, but one that feels very much ‘worth it’. It has built strong relationships with consumers to support its pricing and in the US, has a margin opportunity. This means it’s currently charging less than it is perceived to be worth; it’s underselling itself and could put prices up and still feel fair. One key driver of Pricing Power for Spotify is its clear sense of Difference and supporting this will be key to maintaining margins in the future. 

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