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.
