Major Labels

Spotify Touts The Weeknd’s ‘After Hours’ As Proof That Paid Sponsored Recommendations Work

During a Spotify earnings call Tuesday, CEO Daniel Ek highlighted the streamer’s “two-sided marketplace” of paid tools and services that help artists and labels promote music on the platform.

As an example, Spotify shared that UMG label Republic booked a Spotify Sponsored Recommendation ad campaign to promote The Weeknd’s new album, “After Hours”, which saw the highest click-through rate of a campaign on the platform to date.

“After Hours” was also the largest album debut of the year so far, and the album reached #1 following this promotional period.

“We continue to believe that growth from these and other products in our Marketplace strategy will exceed 50% for the full year,” said Spotify in a statement.

Ek did not directly answer a question about what new products or services might be added to the two-sided marketplace but did say that some “off-platform” tools were possible.

MORE: No COVID User Bounce For Spotify In Q1 2020 and Spotify Q1 2020 Results – INFOGRAPHIC

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