News & Insights

How Spotify Drives Return on Ad Spend for CPG Campaigns

When marketers connect with real people in relevant moments, they make an impact — and for CPG advertisers who tap into the power and relevancy of streaming platforms, that impact means boosting your bottom line.

New research conducted by Nielsen Catalina Solutions confirms that advertising with Spotify drives significant incremental dollars for CPG brands. Across the CPG campaigns that were measured — spanning cross-platform, multimedia ad solutions — ads were 25% more effective at driving incremental sales per 1,000 impressions than NCS benchmarks. These results reflect the opportunity that comes with pairing the emotional power of a streaming platform with engaging, multimedia ad formats in the right context.

Here are a few key takeaways from the research to keep in mind as you plan your next campaign.

Overall, CPG campaigns on streaming platforms drive results, giving marketers a strong return on their ad spend and increasing purchase frequency of CPG products in larger quantities.

  • All together, the campaigns drove an ROAS of $2.08 for every $1.00 of media invested.
  • A 9% lift in incremental sales demonstrated ability to drive more new households to buy, as well as buying households to buy more frequently and spend larger amounts.

Cross-platform, multimedia solutions deliver maximum impact.

  • Households that were exposed to campaigns on both desktop and mobile drove a 39% higher contribution toward incremental sales, compared to those exposed on only one platform.
  • Similarly, households that were exposed to both audio and display ads drove a 27% higher contribution to incremental sales, compared to those exposed to only one ad format.

Streaming ads can help CPG marketers convert effectively against both brand “switchers” and “loyalists.”

  • Spotify campaigns were able to successfully convert non-brand, heavy-category buyers, as well as retain loyal brand buyers.

This research marks the beginning of Spotify’s ongoing partnership with NCS, a leading third-party measurement provider, and commitment to helping brands understand the true impact of advertising with streaming platforms. Going forward, NCS will continue to measure the effectiveness of Spotify campaigns, helping brands and marketers verify the reach and impact of their advertising on CPG retail sales.

About the analysis: Nielsen Catalina Solutions measured 11 US campaigns spanning across three verticals: food, non-alcoholic beverage, and personal care brands. The campaigns also spanned across platforms (mobile and desktop), across all Spotify ad solutions and across ages (primarily adults 18-44). Campaigns of varying length ran between mid-2015 and late 2016.

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