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Boosting Local Business with Spotify Ads: Real Strategies and Success Stories

About 515 million people are using Spotify worldwide and 40% is on the free, ad-supported plan. This means you can reach about 200 million people with your ads - and they won't be able to skip it. Spotify isn't just a music platform, it is the perfect place for your business to advertise and grow your business. Want to know how? Then read the following success stories.

Floor Linskens
October 3, 2024
3 Min

With Spotify ads you can create ads that are personal, timely and incredibly effective. Unlike traditional advertising ads, that people are skim or scroll past, Spotify ads are head, making them more engaging. Plus, with 40% of users on the free plan, your ads are unskippable, meaningthey will hear the entire message. Whether it’s small businesses or big names like Gymshark and Airbnb, everyone’s seeing great results with Spotify ads—let’s see how different brands are making it work.

Are You Ready to Boost Your Spotify Ads?

RendezVous Case Study – Growing a Local Barbershop with Spotify Ads

RendezVous, one of the fastest growing barbershops in Canada, wanted to try something else than the saturated Facebook Ads market. They asked us about alternative options, and that’s when they discovered the power of Spotify ads. Here's how they did it using Roya.

The Challenge

RendezVous already had a solid reputation, however they wanted to reach different audiences. Their goal was to reach busy young professionals who hadn't visited their shops yet. Facebook Ads weren't the right approach to target this audience - busy young professionals usually don't doom scroll that much. Neither are they actively looking on Google for "barbershop near me" or a similar term. But they do listen to Spotify when they are on their way to work or going for a run, making Spotify the perfect platform to target this audience.

The Solution: Spotify Ads with AI Precision

Together with Roya, RendezVous created Spotify Ads that spoke directly to their target market. As we have seen in this blog, you want to target a specific audience: when you try to speak to everyone, you are speaking to no one. And that is exactly what we did for RendezVous: we created ads that directly speak to busy young professionals. One ad example included: “Between work and life, take a break and visit RendezVous for a fresh cut. Your day deserves it.” This approach made the ads feel relevant and personal.

The next step in a precise approach, was making sure we targeted professionals within the right radius of each barbershop. With Roya, the ads were delivered to listeners within a 10-mile radius of each barbershop, ensuring every dollar spent worked to connect with the right audience.

The Results: 25,000 Listeners for just $250

In just two weeks, RendezVous reached 25,000 local listeners for just $250, and we achieved a click-through-rate of 105%. This means they spent just $0.01 per listener. Thanks to the precise targeting made possible by Roya, the campaign delivered great results. Read the full Rendez Vous case study here.

Takeaway: You don’t need a huge budget to make a big impact. Personalized, well-targeted ads, combined with smart storytelling, can connect with the right people and grow your business.

Gymshark

Spotify ads work for both small businesses and big brands. Let's look at some of results of the big well-known brands when using Spotify Ads, and how we can use the same techniques for local businesses. Starting with Gymshark, a global fitness brand. that used Spotif to create personalized campaigns that resonated with their audience and drove impressive engagement.

Motivating Listeners During Workouts

Gymshark, a fitness clothing brand, used Spotify ads to target listeners during workout playlists. They used Spotify in two ways, the first was through a 'normal' ad, where they advertised their fitness clothing.

However, Gymshark also did something else - their Spotify has workout playlists and playlists created by specific athletes. They promoted those playlists, allowing listeners to connect with the brand during their workouts. These ads served as a form of soft selling; subtly promoting the Gymshark brand without being commercial. By doing this, they build a connection with their audience, keeping the brand top of mind during workouts. And the result? Loyal customers and more sales.

This personalized, value-driven approach has not only built brand awareness but also increased audience engagement, allowing Gymshark to stand out in a competitive market and strengthen their connection with the audience.

Takeaway: If your business targets a specific activity, like a gym or fitness service, match your ad’s tone with the playlist. Use language that fits what the listener is already doing. For example, for a gym, you might say: “Feeling strong? Keep that energy up with [Your Business]—first class free!”

And, it can also be very valuable to create playlists on Spotify - you don't have to promote these. But they can build a deeper connection with your audience.

LinkedIn: Motivating Listeners to Grow Their Careers

LinkedIn, a professional networking platform, used Spotify to target young professionals to invest in their career growth. They targeted different audiences: students, job seekers and newly employed professionals. However, they used different formats to target differnet audiences, making sure the ad actually resonated with the target group.

LinkedIn didn’t stop at traditional ads; they used a similar approach as Gymshark. They sponsored playlists like the “Study Bundle” and ran podcast ads on popular shows, allowing listeners to connect with LinkedIn during their moments of productivity. These ads were not only informative but also motivational. They offered value to the target group, without being too promotional.

The goal of the campaign was to boost brand awareness, and that is exactly what they achieved. The results were impressive: LinkedIn saw a 19% increase in ad recall and a 10% boost in awareness of LinkedIn.

Takeaway: For local businesses offering educational or professional services, tailor your ads to moments when your audience is in a similar mindset. For instance, if you run a tutoring service, your ad could say, “Ready to boost your skills? Stay focused with [Your Business]—offering personalized tutoring sessions, now with a free trial.”

Hyundai on Spotify: Building Brand Awareness Through Humor

Hyundai, a global automotive brand, used Spotify’s sound-on video ads to create an engaging, humorous campaign that played on the different ways Brits pronounce “Hyundai.” They used Spotify ads to get listeners laughing, but also to reconsider their brand, boosting brand awareness. The results? A 26% increase in ad recall and a 10% jump in top-of-mind awareness.

These increases mean that more people not only remembered the brand but also started considering it first when thinking about cars. For businesses, this translates into staying top of mind, leading to more potential sales and customer engagement.

Here’s how local businesses can apply this strategy:

Engage with the local audience: Use familiar themes or local slang in your video ads to make your business stand out. Whether you’re a café or a gym, tapping into what your local audience values or finds humorous can make your brand feel more personal.

Maximize engagement with short, powerful messages: Short, unskippable ads give you a few seconds to capture attention. Make sure your message is clear, engaging, and ties back to your brand—just like Hyundai did.

Leverage existing video content: If your business already has video content, repurpose it for Spotify ads. You don’t need a huge budget to create engaging ads; even a simple walkthrough of your shop or highlighting a special offer can be effective.

Conclusion

Spotify ads offer a powerful way for businesses of all sizes to create personal, engaging connections with their target audience. By delivering ads that feel relevant and tailored to the listener’s experience—whether through storytelling, humor, or syncing with popular playlists—your brand can become a part of the listener’s daily routine. As seen with brands like RendezVous, Gymshark, and Hyundai, even small budgets can drive big results when paired with the right strategy. With the help of platforms like Roya and AI-powered targeting, you can maximize your ad spend and effectively reach the right people at the right time.

FAQs

1. How much do Spotify ads cost for small businesses?

Spotify ads are highly flexible, and you can start with a budget as low as $15 a day. With precise targeting, every dollar can be maximized. This guide will explain step-by-step how to set up your first Spotify campaign.

2. Can I use Spotify ads if I don’t have a large video or audio library?

Absolutely! You don’t need a huge content library. Even simple ads, like a quick walkthrough of your shop or a short, engaging message, can be effective. Spotify offers creative tools to help you create audio ads from scratch. And, in this blog I explain you how you can use ChatGPT combined with Roya to create your message - without you having to record anything.

3. What makes Spotify ads more effective than other platforms?

Spotify ads are sound-on and unskippable for free listeners, meaning your message is guaranteed to be heard. This leads to higher engagement compared to visual ads that people might scroll past or ignore.

4. How can local businesses use Spotify ads to engage their audience?

Local businesses can benefit from hyper-targeting based on location, demographics, and interests. By creating ads that feel relevant and personal—like using local humor or addressing the audience’s specific needs—you can build a stronger connection and increase engagement.

Still have questions?

Contact us for further assistance.

1. Target Local, Think Global: Use Spotify’s local targeting to narrow in on your community while tapping into its massive global audience. A well-placed ad in the right playlist can capture local listeners at exactly the right moment.

2. Context is King: Match your ad to the listener’s context. Just like Gymshark targeted workout playlists with motivational messages, adapt your message to fit the mood of your audience to enhance engagement and increase recall.

3. Story-Driven Ads Win: Focus on telling a short, compelling story rather than just pushing a product. Spotify ads allow you to connect emotionally with listeners—build trust through stories that make your business feel personal and relevant.

4. Leverage AI for Precision: With AI-powered tools like Roya, you can automate ad optimization based on real-time data. This means your ads are continually refined to deliver the best performance—reaching the right audience, at the right time, with the right message.

Written by:
Floor Linskens
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