WPP tunes into Spotify’s first-party data with new global partnership

Dive Brief:

WPP and Spotify have struck a global partnership that will provide the world’s largest ad-holding group with new levels of access to the audio-streaming platform’s ad products and data, according to a press release.
As part of the pact, Spotify is integrating directly into some of WPP’s solutions, including its Choreograph first-party data unit. WPP, in turn, will develop integrations that leverage Spotify’s listening insights to help clients design better creative and audio campaigns.
WPP and Spotify are also working to offer training programs, while clients will receive early access to audience trends research conducted by Spotify. One of the first fruits of the collaboration is a Sonic Science study between Spotify, WPP’s Mindshare and researcher Neuro-Insight that is tailored to the agency’s client base.

Dive Insight:

WPP is deepening an existing relationship with Spotify to help clients refine their digital audio strategies. For Spotify, the new partnership could attract more ad revenue in what has been a depressed market. The audio-streaming platform has added new users at a steady clip this year but missed analyst expectations on revenue in the second quarter while offering weak guidance.

A major component of the global pact with WPP centers on data. Spotify is keyed into when and why consumers tune in to music, podcasts and audiobooks, as well as their receptiveness to ads in those moments. Spotify has 551 million total monthly active users, according to its Q2 earnings statement, including 220 million paid subscribers who receive an ad-free experience.

WPP is getting a peek into Spotify’s first-party “occasions insights” to give advertisers a better understanding of aggregated listening patterns and, stemming from that, the ability to deploy more effective campaigns. This is the first time a digital audio platform has directly integrated with WPP’s solutions and products. A key aspect of the collaboration is focused on WPP’s Choreograph, a group dedicated to first-party data services that formed in 2021 by combining specialist units from GroupM and Wunderman Thompson.

WPP, like other agencies, has been investing heavily in its consumer data know-how ahead of the planned deprecation of cookies next year. Partnerships with large technology platforms are one way to shore up customer data strengths. WPP will post its first-half trading update Friday.

“At WPP, we recognise the power of audio as a critical component of marketing,” said Stephan Pretorius, WPP’s chief technology officer, in a press statement. “The intent of this first-of-its-kind partnership is to integrate Spotify’s insights with the Choreograph platform to create more innovative and relevant ways to connect our clients with their customers.”

WPP and Spotify will also provide agency partners with thought leadership, training programs and industry research around the digital audio market. Studies suggest that audio environments carry a more attentive audience. A recent Lumen report commissioned by Dentsu revealed audio ads generate stronger brand recall metrics than video and other formats.