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Streaming on the go: Why Spotify ads offer a prime opportunity to reach telco switchers

Spotify listeners are known for streaming music and podcasts on the go. For telco brands, here's why it matters.

Feeling immersed, entertained, and shut off from the outside world—even if just for a few minutes—is something we all need. So, it's no surprise that in today's tech-savvy world, people are taking their music and podcasts with them wherever they go.

This is significant for telecommunications (telco) brands looking to leverage digital audio advertising. In today's rapidly evolving telco market, Spotify is seeing a trend among service providers: a laser focus on using rich offers and heavy incentives to attract customers looking to switch providers or upgrade their plans.

Recently, Spotify conducted custom research to dive deep into listeners' motivations and barriers when it comes to selecting a service provider and navigating the 5G landscape. Here's what we learned.

Change is on the horizon

Have you heard the saying that people are resistant to change? When it comes to switching or upgrading their telco service, our findings throw that theory out the window. In fact, a whopping 87% of Spotify listeners say they plan to either switch or upgrade their existing mobile service plan—and sooner rather than later, with more than one in four intent on doing so within the next six months.1

Spotify engagement is a key indicator

What does streaming podcasts and music on Spotify have to do with this revelation? As it turns out, a lot. Our results show that listeners who mean to switch or upgrade their telco providers or plans tend to spend significantly more time streaming on Spotify than people who don't intend to make a change.

In fact, listeners who plan to switch service providers are 158% more likely to spend two to four hours per day streaming podcasts on Spotify. They're also 31% more likely to spend that same amount of time each day listening to music.2 That all adds up to a lot of time engaging with Spotify on a day-to-day basis.

There are two core reasons why listeners crave change

Our study investigated the main drivers behind switcher and upgrader behaviors. We found some key insights that telco companies can use to inspire highly effective podcast ads and audio ads:

  • Price matters. A lot. 69% of listeners planning to switch or upgrade cite price as the “extremely influential" reason behind their decision to make the change.3
  • Network coverage is crucial too, with 39% ranking this as an "extremely influential" reason for making a switch.4 After all, no one wants their true crime podcast to cut out right before a big reveal.

Meanwhile, Spotify listeners who aren't planning to make a move need justification: More than three-quarters (76%) of those not intending to change say they're satisfied with their current service provider or plan.5

There is a need for speed

Interest in 5G access is on the rise: Regardless of whether or not they plan to switch or upgrade, nearly half of Spotify listeners (47%) surveyed say they are at least "somewhat interested" in having 5G access. Meanwhile, of those who aren't interested, 29% feel 5G won't make much of a difference—presenting an opportunity for education.6

When it comes to those who do plan to switch, the interest in 5G is even higher, with 75% of switchers more likely than non-switchers to be open to giving up broadband access for a 5G-only option. The primary driver behind this? About 25% of Spotify listeners interested in 5G point to its ability to provide faster streaming for music and video.7

Key takeaways for the telco marketer

Switchers and upgraders play a key role in the telco marketing space, and Spotify's research shines a light on the behaviors of these coveted listeners.

Here's a quick summary of our key takeaways:

  1. People who are highly engaged with Spotify are more likely to be planning to switch or upgrade their providers or plans. This gives telco brands a contained and high-intent audience.
  2. Price and network coverage make a big difference for people planning to make a change. This insight can have a significant impact when it comes to incentivizing listeners to take advantage of telco brand offerings.
  3. Those who plan to switch are open to innovation. This means switchers represent a prime market for telco packages offering 5G and other leading-edge services.
  4. 5G access appeals to switchers and upgraders at least in part because it provides a faster means of streaming. This represents an optimal opportunity for service providers to share educational messaging around the 5G format as part of their brand marketing.

Ready to reach switchers and upgraders eager to make the jump? Explore how with Spotify Ad Studio.

1, 2, 3, 4, 5, 6, 7 Source: Spotify x Qualtrics Service Provider Survey, April 2022

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