Spotify ran a 75-day premium subscription campaign on NEXUS to convert free users and attract new music enthusiasts seeking enhanced audio experiences. The campaign focused on personalized music discovery, ad-free listening, and exclusive podcast content.
With a $182K budget, Spotify effectively expanded its premium subscriber base while maintaining high conversion efficiency.
Campaign Objective
The objective was to convert free Spotify users to premium subscriptions and acquire new high-value subscribers by leveraging custom audience targeting, lookalike expansion, and subscription-focused retargeting.
Audience Targeting Strategy
- SaaS & Subscription Familiar Users: Targeted SaaS subscribers and AI tool users comfortable with recurring digital subscriptions.
- Custom Audience Segmentation: Re-engaged existing free users through 1st Party Audience targeting to maximize conversion probability.
- Lookalike Expansion: Identified new music lovers, podcast listeners, and premium audio enthusiasts with similar behavioral patterns to existing high-value subscribers.
Creative & Campaign Optimization
- Personalized Content: Showcased Spotify’s recommendation algorithms, Discover Weekly playlists, and exclusive podcast content to highlight premium benefits.
- Feature-Focused Messaging: Emphasized ad-free listening, offline downloads, and enhanced audio experience to differentiate premium subscriptions.
- A/B Testing & Optimization: Tested creative variations across demographic segments to maximize free-to-paid conversion rates.
Campaign Execution
- Custom Audience Precision: Reached existing free users most likely to convert, maximizing subscription efficiency and lifetime value.
- Lookalike Expansion: Expanded reach to high-potential audiences while maintaining conversion quality.
- Subscription-Familiar Targeting: Reduced onboarding friction for audiences already comfortable with subscription services.
Campaign Results
- Total Conversions: 2,800+ verified premium subscriptions
- Monthly Revenue: $182,000 in recurring subscription revenue
- Cost Per User: $65
- Return on Ad Spend: 11.5×
- Total Impressions: 38.9 million across music and entertainment platforms
Observations
Spotify’s premium acquisition campaign demonstrates the effectiveness of combining 1st Party Audience re-engagement with lookalike expansion to drive subscription growth. By targeting users already familiar with subscription models and highlighting personalized premium features, Spotify achieved strong conversions while efficiently growing its music streaming community. This campaign proves that music platforms can scale premium subscriptions through precise behavioral segmentation and audience optimization on NEXUS.
