A guest blog from Our Video lead – Brian Danzis – Spotify are leading the way in quality content
When it comes to viewability, what you see isn’t always what you get.
It seems that every day brings a negative report about unseen advertising, wasted investment or misrepresented metrics by large publishers. Concerns over fraudulent traffic and the re-emergence of silent, auto-play, small-player video are raising new questions about the definition of a video view—a concept that once seemed straightforward.
The industry is calling on its leaders to take action. Procter & Gamble’s Chief Brand Officer, Marc Pritchard, gave a widely lauded speech at the IAB Annual Leadership Meeting in January, announcing new requirements for the company’s media vendors to clean up the supply chain. He spoke on this subject again this week at 4A’s Transformation 2017. We’ve also seen brands and agencies recently remove their content from platforms in response to questionable user generated content. At Spotify, we’re thinking hard about product innovation and third-party measurement…
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First published here
Some classic disco to jump-start the morning, a slice of soothing folk to assist concentration at work, a bit of roaring heavy metal in the car on the way home, and some easy-listening jazz to accompany dinner-time cooking – well, you get the idea.
Sound like your ideal day? Almost certainly not – everyone has their own music tastes. For many of Spotify’s 100 million-plus registered users, that playlist would include Ed Sheeran, who nearly ‘broke’ the platform with 273 million streams of his latest album within days of its release.
Either way, Spotify claims those listening habits are enabling it to help brands create more relevant advertising experiences.
Former Publicis executive Marco Bertozzi joined the streaming service as vice president, Europe, and head of sales late last year. Speaking to M&M Global ahead of his participation as a speaker at Festival of Media Global 2017 in Rome, Bertozzi said that, prior to his move, he had not considered Spotify’s potential for multi-device, day-long storytelling.
“Our core audience is listening to Spotify two-and-a-half hours a day across all different devices. The one USP I hadn’t thought about when I came in is our ability to communicate with people right through the day,” says Bertozzi.
“Even if they have their phone in their pockets, or they are in the car where they won’t be watching video, we have the audio to be able to communicate. That helps us to talk to the consumer right through the day, and I don’t think anyone else can do it.”
‘STREAMING STATE OF MIND’
Bertozzi will be attending Festival of Media Global in part to discuss ‘The Streaming State of Mind’, a report published last year in partnership with WPP’s GroupM, exploring the growth in streaming of music, TV and movie content across North America, Europe and Asia Pacific.
Thanks to the likes of Spotify and Netflix, streaming has become a prevalent form of digital content consumption, especially with younger Millennial and Gen Z users. The majority (60%) of this streaming is also being carried out using mobile devices throughout the day.
The report concludes that ads on streaming platforms targeting consumers during specific moments of the day – from commuting to working out at the gym – represents a $220m opportunity in the surveyed markets alone (the US, Canada, the UK, France, Germany, Sweden and Australia). These numbers are music, quite literally, to Spotify’s ears.
To help advertisers reach the right users at optimal moments, Spotify has opted to turn its back on the co-called ‘walled garden’ ethos of Google and Facebook in favour of a more open and collaborative approach to data – within, of course, privacy parameters that listeners find acceptable.
“Our challenge is to make advertisers realise they can work with us in all these different ways”
Last month, Spotify partnered with Acxiom-owned ad tech company LiveRamp to allow brands to combine their first-party data with its own. Currently being tested in the US, with Europe and other regions to follow, Bertozzi claims this style of ‘people-based’ marketing will finally surpass the old cookie method, and help marketers to improve both targeting and their understanding of campaign performance.
“The sophistication around data-driven marketing is going to continue to grow. A couple of years ago, people would have described using third-party data as being ‘data-driven’. I think we have now moved to an era now where it is more focused on CRM, custom audiences and data matching,” he says.
“[The RampUp partnership] is going to be a really big deal for us, as – in terms of opportunities and capabilities – it puts us in the same league as the Facebooks and Googles of the world.
“It allows us to have much more in-depth conversations with our advertisers, in understanding their audiences better and being able to target and create audiences, [as well as] tracking sales, because you have matched the data. That is a huge play.”
For Bertozzi, Spotify’s core digital audio takes the “personal link” and “intimacy” consumers have long enjoyed with radio as a medium, and offers advertisers contextual benefits. “It’s the best of both worlds,” he insists.
As well as its bread-and-butter music industry campaigns, Spotify has been looking to dial up the creativity of its ad deals. In the UK, supermarket chain Sainsbury’s has used the platform’s Branded Moments format reach consumers in the kitchen while they are preparing meals – and working out plans for their next grocery shop. Disney, meanwhile, also selected Spotify for an elaborate music-themed campaign to promote its latest movie release, ‘Beauty and the Beast’.
A key challenge, however, remains, namely in the need to drive awareness among brands that Spotify – famous for its audio services – offers the full suite of video and display ad formats.
“Advertisers like the fact they can combine video, display and audio as a single campaign, connecting channels that used to be very siloed. That helps us to do more of that storytelling that brands talk about,” says Bertozzi.
“There is an opportunity for pretty much any advertiser to work with us. We talk about the power of audio as one of our key narratives, but we’re talking about it in the sense of people listening to music and podcasts. From an advertiser point of view we are a multi-channel experience, and our challenge is to make advertisers realise they can work with us in all these different ways.”
And to the big question – can anyone (or anything) top Ed Sheeran’s incredible strangle-hold on Spotify playlists in 2017?
“Very good question,” chuckles Bertozzi. “It’s hard to see anybody coming up behind Ed Sheeran any time soon. I guess it will be if someone, somewhere could persuade Taylor Swift to come back, but that is well above my pay-grade!”
- Advertisers are going to continue to take more ownership of their programmatic work in some way, hopefully finding a happy balance with agencies, combining best of both worlds
- Quality media will see a resurgence – it will at least be given air to breathe. Quality sites will be seen for what they are, brand safe with quality audiences
- Verification will be standard for Facebook and Google – at last advertisers will be able to see what their viewability scores are on puking rainbows
- Standards are about to shoot up. At Spotify we sell all video with Moat HAVOC standards – Human, Audio, Video, on complete. Our ads deliver 100% SOV, 95+% viewability. See these as becoming standard.
- I really did not know where anyone’s offices were and Christ you do a lot of travelling around. Google saves hundreds of hours by getting everyone to come to them.
- You get cancelled a lot. No biggie, shit happens, but you get cancelled a lot
- What I assumed would be an awesome event to attend is actually just competing with loads of awesome events to attend
- People cancel late – main thing is to cancel, even that day, but not so late you can’t find a home for the ticket, even if I bring my mum
- Learning all about restaurants in a 5min circumference from each agency
- I have competed with many, annoyed some, but overall everyone has been hugely welcoming of my new role.
- Agencies are working their socks off on pitches. Every.Single.Day.
- There is some cool shit going on in agencies, fascinating to see and hear it. One even came to tell us about it.
- I am really enjoying getting to work with all the people I used to work with but are now scattered across the industry – chance to see everyone again
- Agency chat involves a lot about offices. A lot. More even than Google and Facebook talk about theirs.
- People talk about Google and Facebook a lot.
- There are so many people I did not know but glad I am getting to know.
I have not self combusted.
I could have waited a month, six months, a year to write this but the biggest impact of jumping in cold water comes immediately, not after a few minutes, so I thought I would try to sum up my feelings about the change from agency to sales two weeks in.
This is not a blog about better or worse, it’s about difference. I am old enough and wise enough now to know that everyone goes to work every day and takes what they need out of work, you can only hope that you find a role that fulfils you, we spend a lot of time at work and being happy there, whatever the role is important. What I will be finding out I guess is whether I should have been doing sales all along, as many have told me, or whether I had it right first time. I feel like timing and choice of company will also impact that decision and I will come back to that shortly.
1.Clarity of focus
So 20,000 minutes later, the first thing that really strikes me is the clarity of focus. I used to describe that as ‘does it not feel repetitive talking about only one thing?’ But now I am in it, there is something liberating about having a clear focus on what your role in life is, it helps being in a brand as strong as Spotify admittedly, but nevertheless. Agencies have a lot of ground to cover and they have to be experts in many things which is hard and they do a great job of it. When I think of a planning director in an agency, they have to be strategic, understand everything from content to programmatic, keep the client service ticking over and that is not easy. That range of services and opportunities needs to be communicated to clients and so meetings have to cover so much and sometimes without the time to really go deep. When I hear people say ‘I can never get hold of someone’ I suspect it is because they have shifted their time to their clients and not meeting everyone and their dog from the outside. What appears to be a negative, is likely a positive.
On the media owner side, dark side, partner or publisher side you are there for one reason. Everyone knows you are there to talk about your brand and your proposition, the challenge for us is that we have to do a good job of that, since that is all you have to do. As an agency executive I would expect sales people to know their product inside out, ideally know what’s happening in my business and with my clients and deliver a clear and persuasive argument as to why I should spend money with you. The clarity of that purpose is quite liberating. I was in a meeting with a large global client and for me the first thing was that the relationship of our two brands was a no brainer – our audiences complimented each other perfectly. That is something as a publisher, if you have that you should be confident of it, how you then connect the two brands is just a collaboration using all the assets we have available to a brand.
2. Pace of work generates energy
I expected the pace to be different for sure, agency life runs on a different, longer term timetable, different objectives and I expected to find that on the sales side, but there is a stark difference. Of course things are shorter term, but pleasingly mixed with longer term strategies running in parallel. On top of the pace of things though comes the energy which is generated – the communication is fast and frequent, the team support each other and there is a great energy, again connected with clarity of purpose. I think that is something that 20K minutes in, I am enjoying the most. The team has great energy and I love seeing them getting behind each other, both in country and across countries.
The time in CES which I was lucky enough to enjoy with some of my European band members and some of the US as well was a joy in terms of spending time with people who are all excited and pulling for each other. The Spotify space in Vegas was real quality and I felt proud to be part of the company and especially when combined with the great people I met who all welcomed me in. I am going to spend the next week with them in NY as well, which I am thoroughly looking forward to.
Yes. Numbers are everywhere, this is a company built on understanding our business regardless of your level, sounds obvious? Well I think sales people who move to agencies may be surprised how relatively cosseted the equivalent levels in agency are from the business metrics behind what they do. At a certain level of course there is more exposure but there is so much to make sure you are on top of in a shorter term revenue business to make sure that targets are met than you would find in agency. At a large Google conference that I go to every year they split it into buy and sell side. This year it fell right on the change in my role and so I asked if I could swap and join the sales side tracks even though I was invited as buyside. It was interesting to me that on the buyside everything focused on what could we target, how could we use the data more, how can we join up channels etc. On the buyside it was far more commercial. How do we drive revenue for our valuable and scarce quality audience?
So you want to join the dark side? Well I am afraid I think it will depend on who and when you join. I wrote down the kind of company I wanted to join, and Spotify came top and I was lucky enough to get in the door. I feel comfortable in this environment because I can be passionate about a brand that is in the hand of the most sort after audiences for 2+hrs a day. I feel passionate about a brand that people love and that makes my job so much easier. The clarity of purpose suits me, the brand suits me, and the team is great so it works, albeit 20K minutes in! Agencies provide a powerful view of the landscape, you get to see everything, that variety is intoxicating so if you move to media owner side I would suggest go somewhere you care about and has a great offering, that more than makes up for the slightly more focused narrative. That said, I have enjoyed meeting some of the agency contacts I have been mates with for 20 years, that gives a whole new perspective on things. I look forward to working with all those agency friends, I just happen to be sitting on the other side of the desk.