Spotify is taking a new approach on how its reaches its listeners with advertisements. Spotify is the world’s largest music streaming service and has millions of users. Spotify currently purchased an app called MightyTV. MightyTV is a TV and movie recommendation app that made recommendations based on user's previous selections of TV shows and movies. Spotify is purchased MightyTV in order to create technology that will allow advertisers to target listeners based on their listening habits. Spotify will now be using user's listening habits as another form of segmentation. Spotify currently uses geographic and demographic segmentation when advertising to its listeners. Spotify asks its users their sex, age, home state, and other personal information when signing up. The segmentation based on listening habits that Spotify is looking to use is has been used by online publishers for a while now, this form of segmentation is not as frequently used for audio advertising. Spotify and MightyTV have a great opportunity to perfect this method of segmentation in order to propel themselves above competitors.
https://www.bloomberg.com/news/articles/2017-03-27/spotify-buys-tv-app-that-helped-viewers-figure-out-what-to-watch
Dontrell Lawrence