Spotify tests "sponsored songs" alongside playlists

Recently, a new option appeared in Spotify’s settings menu: a toggle to turn a feature called "sponsored song" on or off. Spotify has now given some information on how sponsored songs will work within its free tier: “a product test for labels to promote singles on the free tier”.

“Instead of appearing as obvious ad banners like Spotify’s existing ads, labels can pay to have Sponsored Songs appear on playlists you follow or potentially elsewhere on the service”, reported TechCrunch, after being briefed on the new feature. “These can be targeted to appear to users with matching listening tastes so they fit alongside their other music. And these Sponsored Songs will be instantly playable and saveable instead of requiring an initial ad click first”.

There is no information on how much Spotify is charging for these sponsored slots, although judging by the company’s comments it remains a test rather than an official feature rolling out to all its free users. The existence of the settings toggle suggests premium users will be able to turn sponsored songs off, which is sensible – as is the fact that they appear above a playlist, rather than being inserted into it (not least for regulatory ad-disclosure reasons).

If sponsored songs rolls out globally, it’ll add more fuel to the perennial streaming-vs-radio debates – this feature will certainly compete with commercial radio stations for advertising spend, with Spotify able to brandish its active-user reach in individual countries as a comparison to terrestrial stations.

Source: TechCrunch – http://tinyurl.com/ycujyyhf