If money makes the world go round and America “Runs on Dunkin”, what does music do? Well, I would dare to say that music owns our souls. From radio, to satellite, to iPods and even greeting cards – it seems that music is part of our everyday lives. With consumers’ addiction to the Internet, it was only a matter of time before Internet radio emerged. Most are aware and/or have used the big players in this space, Pandora, Spotify, Turntable, and iHeartRadio but I have recently found a new way to feed my addiction. Songza, a free streaming music and recommendation service, has actually been around for roughly 4 years but has recently perfected their model. What makes Songza so different? It doesn’t just create stations based on genres or artists, but time of day, what you’re doing, interests, and eras. Pretty cool, huh?
This great new platform is available on mobile for free and is free to all users online. The platform is similar to most competitors and has functions for liking, disliking, skipping, and sharing. It is also integrated with good ole Facebook and listeners can comment on the playlist and see other users who have listened to the same playlist. Well this is all fine and dandy, but how does this affect the world of display advertising? I’m getting there….I promise.
As of right now, Songza does NOT have any audio ads. From a conversation I had with a rep, they plan to keep is this way for quite some time. This is great for listeners but not so great for advertisers. Despite the lack of audio ads, brands can create their own branded playlists with a small area for brand details. Marketers can also advertise on the site based on standard measures such as zip code, and other demographics. Perhaps the coolest display opportunity has not rolled out yet, but I’m sure is to come. Songza is now collecting data on what consumers are doing, at a specific time of day. This type of information is very valuable to advertisers. I can just see it now…I’m logging in around 3pm on a Wednesday and I need an “energy boost”. Poof! Here comes my 5-hour energy ad or my Starbucks ad. Or say it’s Friday night and I’m listening to my “Weekend Dance Party” playlist – que the Smirnoff ads or even Degree deodorant ads. The potential is never ending as long as Songza continues to add these unique playlists catered to activity and time of day. As the platform becomes more heavily used and more music lovers use these playlists to get them through the day, the advertising leverage will be a fresh new spin on targeting consumers with relevant content (which is key).
Now excuse me while I get my “Unwinding After a Long Week” on.