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Spotify Advertising: 6.6x benchmark CTR for SMB ads

Spotify’s self-serve ad product brought its enterprise tools to small businesses, but the message was still written for enterprise. We tested four value propositions in market. Trust won, and the program ran at 6.6 times the benchmark click-through rate.

Client

Spotify Advertising

Role

Brand & Comms Strategy, Media Planning & Buying

Positioning & Messaging

Key Takeaway

Small businesses already believed in Spotify’s reach. What moved them was credibility: “most trusted ad platform” beat the reach-based claims. We found that by testing four value propositions in market instead of settling the message in internal debate.

Context

The self-serve message still spoke to enterprise.

Spotify Ads had built its ad platform for Fortune 500 advertisers running custom programs. The new self-serve product gave small businesses the same capabilities, but the positioning hadn’t moved to their needs or their barriers.

The story was feature-rich and confused more buyers than it converted, and internal debate over the positioning was taking time the launch didn’t have.

Approach

Both SMB segments had the same barrier: credibility.

Two SMB segments

“Awareness Scalers” wanted broad reach. “Ad Savants” wanted technical capability. Both needed a reason to trust the platform before they would try it.

Two SMB segments

“Awareness Scalers” wanted broad reach. “Ad Savants” wanted technical capability. Both needed a reason to trust the platform before they would try it.

Two SMB segments

“Awareness Scalers” wanted broad reach. “Ad Savants” wanted technical capability. Both needed a reason to trust the platform before they would try it.

The trust message

Small businesses already believed in Spotify’s reach. “Most trusted ad platform” outperformed the reach claims in both segments.

The trust message

Small businesses already believed in Spotify’s reach. “Most trusted ad platform” outperformed the reach claims in both segments.

Format by platform

We matched format to platform: video on Facebook and Instagram, static on LinkedIn and X.

Format by platform

We matched format to platform: video on Facebook and Instagram, static on LinkedIn and X.

Format by platform

We matched format to platform: video on Facebook and Instagram, static on LinkedIn and X.

Solution

Four value propositions, tested in both segments.

Value proposition tests

We tested four value pillars, Reach, Trust, Performance and Ease, against both segments to find the strongest combinations before scaling budget.

Value proposition tests

We tested four value pillars, Reach, Trust, Performance and Ease, against both segments to find the strongest combinations before scaling budget.

Value proposition tests

We tested four value pillars, Reach, Trust, Performance and Ease, against both segments to find the strongest combinations before scaling budget.

Value proposition tests

We tested four value pillars, Reach, Trust, Performance and Ease, against both segments to find the strongest combinations before scaling budget.

Three-stage sequence

Messages ran in three stages, awareness, consideration and conversion, and engagement signals decided when someone moved to the next stage.

Three-stage sequence

Messages ran in three stages, awareness, consideration and conversion, and engagement signals decided when someone moved to the next stage.

Three-stage sequence

Messages ran in three stages, awareness, consideration and conversion, and engagement signals decided when someone moved to the next stage.

Three-stage sequence

Messages ran in three stages, awareness, consideration and conversion, and engagement signals decided when someone moved to the next stage.

Creative by platform

Video led on Facebook and Instagram and static led on LinkedIn and X, with the same message on every platform.

Creative by platform

Video led on Facebook and Instagram and static led on LinkedIn and X, with the same message on every platform.

Creative by platform

Video led on Facebook and Instagram and static led on LinkedIn and X, with the same message on every platform.

Creative by platform

Video led on Facebook and Instagram and static led on LinkedIn and X, with the same message on every platform.

Testing in flight

We A/B tested messages, formats and audiences inside each campaign cycle and fed the results into the next round.

Testing in flight

We A/B tested messages, formats and audiences inside each campaign cycle and fed the results into the next round.

Testing in flight

We A/B tested messages, formats and audiences inside each campaign cycle and fed the results into the next round.

Testing in flight

We A/B tested messages, formats and audiences inside each campaign cycle and fed the results into the next round.

Results

Click-through ran 6.6x benchmark and CPM 72% below it.

Market testing settled the message after internal debate hadn’t.

Both segments responded to trust over reach.

Budget scaled behind the trust message once it won.

6.6x

CTR vs. benchmark

-72%

CPM vs. benchmark

Value propositions tested in market

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