Kevin Murphy Media Views: March 2009

So far I’ve I think Spotify have done a really good job of building an enticing and original proposition and building a reputation in influential social circle such as the digital media world.

The premise demonstrates one of the things I love most about the internet – how an entrepreneurial spirit can combine with creative thinking and marketing to provide a useful and original offering for consumers in an engaging community environment. In all of these ways, Spotify fits the bill.

Marketers know that sampling can still be a tremendously powerful touchpoint. It still remains a powerful statement of brand confidence. This essentially is what Spotify offers along with an immediate revenue stream for the record labels who allow their artist’s music to be played.

It is a controlled environment where a significant volume of music is available to listen to for free, with a restricted number of radio style ads played in between tracks alongside other display opportunities which can be linked directly to itunes or label websites. This is a very powerful direct response add on-as it allows the AIDA model to be followed in its entirety in the space of minutes.

Even without the display link it is still easy to capitalise on interest and buy legally. I listened to Elbow on Spotify after hearing lots of hype and within minutes I had bought the album. Other bands such as Glasvegas are now on my radar. Like many I also took advantage of the Guardian offer to exclusively hear the new U2 album which was marketing masterstroke to take Spotify closer to the mainstream.

Another clever promotional move was the invite only access during beta testing. This was particularly successful in getting the digerati talking and taunting about in on their blogs or on Twitter, thus creating desire and getting the offering into the minds of the right advertising influencers.

Currently I find the current balance of audio ads to be about right. They are unobtrusive and in these early days I have particularly noticed the ads that have aired, most noticeably ads from the COI. So in these early days there is an opportunity for brands to cut through and be associated with a new and exciting offering.

Do I think it will cut back on music piracy? Probably not. Commenting on an article on Times Online about U2’s piracy problems, a postgrad said students “Download enormous amounts of music illegally. But we buy what we like.”

However making it so easy to trial and purchase music legally is certainly a positive move from the record companies. I think the model will generate more sales from existing legitimate music buyers and encourage new music to be given sustained exposure. As the same postgrad says “I am considered a pirate because I like to hear the album before I buy it.”

By being able to build and share playlists and recommendations Spotify is enabling a music community of advocacy, sampling and if the music is good enough, purchase. It is also developing more sophisticated targeting opportunities, including by region so that the advertising element can also be successful in its own right. It has all the ingredients to be a success and I hope it is.