Spotify Ad Pitches Reveal More Details About Its Forthcoming US Facebook Integration

A deck of Spotify marketing materials has been obtained by AllThingsD. The deck, which the music streaming company was using to pitch advertisers in preparation of a launch in the US, includes some details about Spotify's plans for reaching American Facebook users. It notes that these users will see music in their news feed and will be able to click through to subscribe to the service. The deck also notes that a Spotify tab application will allow Pages to offer their fans a music experience. It's currently unclear whether Spotify will be part of the Music Dashboard that Facebook plans to launch, be separate but with premium placement on the site thanks to a deal with Facebook, appear as standard Platform applications, or some combination. These materials don't indicate any special treatment, implying that outside of a place in the Music Dashboard, Spotify might just be available to US users in the form of canvas and Page tab applications. Regardless, the launch of Spotify in the US could help shift music sharing on Facebook from isolated news feed posts of YouTube music videos and other links into something more structured, centralized, and archived that could drive sustained engagement. Spotify's Facebook app has been holding at about 900,000 daily active users for several months, though it's had several spikes up above 2 million DAU that could be due to marketing campaigns. A US launch would give Spotify access to 300 million more people and over 150 million more Facebook users. This could lead to rapid growth for the app, and the service as a whole which the company says has 1 million paying customers, and has implied has 7 million active users. The marketing materials may be a bit ambitious, though, predicting 50 million American users within the first year. Spotify has been telling American record label executives that it could launch in the US as early as next week. It has secured US distribution deals with all the major labels except for Warner Bros. A launch without Warner would mean gaps in its catalogue, including some artists with popular Facebook Pages such as Linkin Park, Metallica, and Green Day. Still, it would have enough content to begin drawing American users to both its free ad-supported and premium subscription services, especially with distribution help from Facebook. The marketing materials primarily explain how the expanded user base that will come with a US launch will drive more users to Spotify, increasing the value of its ad inventory. Users with Spotify accounts outside the US can already share music through the news feed and use Spotify-powered apps, so it doesn't appear that the functionality will be different. Once Spotify launches, Pages with American fan bases can start hosting branded, Spotify-powered applications. The presenting a streaming playlist of music that fans can interact with, recommend to friends, or vote on could help brands create more compelling promotions. Without an official music service of its own, American Facebook users have been in dire need of a solid solution for music streaming and sharing. Turntable.fm's rapid ascension underscores this pent up demand. If Spotify can launch in the US ahead of Facebook's own Music Dashboard, it could get a head start on ingraining itself into music-related user behaviors before Facebook and the other streaming services it may aggregate in the Music Dashboard have a chance.

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Spotify Ad Pitches Reveal More Details About Its Forthcoming US Facebook Integration

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