In an effort to close the advertising revenue gap with tech giants like YouTube and Meta, Spotify has introduced a new feature called Showcase. This paid promotional tool allows artists and their teams to highlight new and older releases on Spotify’s Mobile Home page, which the company says is the “most visited place on Spotify.”
The move comes after Spotify reported ad revenues of approximately $4.8 million per day, a figure significantly lower than YouTube’s $84 million and Meta’s $346 million. Although Spotify’s ad revenue increased by 15% year-over-year in the second quarter, it still pales in comparison to its tech counterparts.
Showcase is open to artists and their teams with US-based billing, provided they have garnered at least 1,000 streams in the last 28 days in one of Spotify’s 30 target markets. Pricing starts at $100, and campaigns run either until the budget is spent or for 14 days after the campaign starts. The feature works on a cost-per-click basis, starting at $0.40 per click.
Spotify claims that users who see a Showcase are six times more likely to stream the promoted release. The tool also offers artists the ability to target specific segments of their audience based on their streaming behavior, breaking them down into super listeners, moderate listeners, and light listeners.
Unlike Spotify’s previous promotional tool, Marquee, which focuses on new releases, Showcase can also be used to promote older tracks. This feature aligns with Spotify’s data indicating an increase in the charting of catalog tracks.
