Indian listeners ‘Sunte Ja’ on Spotify; spent Rs 31.8 crore on advertising and marketing in FY19

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Updated: Dec 24, 2019 1:01 PM

Spotify's Sunte Ja Campaign: At present, Spotify competes against Airtel Wynk, Jio-Saavn, Apple Music, Times Internet and Tencent owned Gaana, Amazon Prime Music, Google’s YouTube, among others

Sunte Ja on SpotifyAccording to Ficci-EY report, the number of consumers across online streaming apps
grew 50% to reach around 150 million in 2018.

Spotify TV Ad Campaign ‘Sunte Ja’: Early this year when Sweden based music streaming app Spotify entered a very cluttered Indian market, the approach followed was to play to its strength, it claims. “Spotify has a huge library – which consists of three billion playlists of songs besides we have a large list of curated as well as user-generated content. We have followed a top-down approach focussing on metros and tier I cities, promoting the usage of the free-to-use app,” Neha Ahuja, head, marketing– India, Spotify, said.

According to Ficci-EY report, the number of consumers across online streaming apps grew 50% to reach around 150 million in 2018. Indian audio streaming apps reached around five billion streams per month, a growth of around 50% over the prior year. At present, the streaming app competes against Airtel Wynk, Jio-Saavn, Apple Music, Times Internet and Tencent owned Gaana, Amazon Prime Music, Google’s YouTube, among others. Regulatory filings sourced by business intelligence platform Tofler, revealed that the streaming platform spent Rs 31.8 crore on advertising and marketing in FY19.

According to Ahuja, the streaming platform has used a range of media starting from TV, radio, outdoor, digital. “We have deployed the strategy of using mass messaging and driving engagement through usage,” she added. Case in point is Spotify’s latest campaign which was rolled out during this Diwali. An extension of its original ‘Sunte Ja’ campaign, featuring actors Anil Kapoor and Ishaan Khattar it drew insight from music is deeply rooted in India’s social fabric, which further projected in the creative. “The time spent on the app has increased significantly post the launch of the campaign. In fact, the usage has increased across all languages including regional,” Ahuja explained.

This was further corroborated by the company when it recently announced its quarterly result. The company said that in Q3, 2019 total monthly active users ( MAU) grew 30% to 248 million when compared to the same period, last year. It further said, “India has outperformed the forecast by 30% this quarter, owing to the momentum driven by a number of factors, including the launch of Spotify’s first broad-based marketing campaign, ‘Sunte Ja’, since launch in February.”

For Ahuja, in addition to its campaign, the music streaming app’s formula of working with artists in order to make music accessible has worked in its favour. “We have created various properties such as ‘Ekdum Candid’ on platforms such as Instagram. Similarly, on Facebook we try to highlight artists,” she noted. The music streaming app claims that the focus isn’t on driving subscription revenue, instead its campaigns are being to ensure the usage of the free-to-use app increases.

Interestingly, Spotify Ltd, on a standalone basis posted revenue of Rs 34.24 lakh in FY19 on the back of net loss worth Rs 44.2 crore, according to regulatory filings sourced business intelligence platform, Tofler. Filings further reveal that the streaming platform earned Rs 31.85 lakh from subscription while advertising revenue stood at 2.39 lakh.

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