There’s a war going on and neither side seem ready to budge. We’re talking, of course, about the never-ending debate between Gen Z’s and millennials. The conundrum? Skinny jeans or baggy jeans. No, really. Despite both generations being close in age, they could not be more different. The only thing they seem to have in common is their social awareness. But whichever kind of jeans you prefer, we’ve made a guide to help advertisers understand both audiences and create killer Spotify ads that yield amazing results. Here’s how you can target both Gen Z’s and millennials to make Spotify ads work for you.

What is Spotify advertising?

Spotify Audio Ads are a fantastic tool to help brands build awareness and relatability. The consumer is much more likely to actively receive this type of ad than with many other kinds of advertising, making it a favourite for many brands. But how can Spotify Audio Ads be used to reach Gen Z’s and millennials effectively?

Spotify’s ad system

In their 2021 Culture Next report, Spotify states their goals in the following:

“At Spotify, we believe that digital audio offers brands something unique: intimate connection with listeners as they stream what they love, on a platform that elevates the world’s most beloved creators alongside emerging up-and-comers.” – Culture Next, 2021.

Spotify makes this as easy as possible through its advertising platform. Using their cutting-edge technology, advertising agencies can easily create a connection with millions of listeners. Even better, these ads can be created freely and in minutes, with 100% measurable results including real-time reporting on the audience, performance and overall ad performance.

Podcasts for advertisers

Remember when we said that Gen Z’s and Millennials have one main thing (environmental awareness) in common? Well, we might have been a little economical with the truth... As it happens, there’s one other thing both generations share. Podcasts.

In April 2021 for their global Culture Next Survey, Spotify asked 9,000 people between ages 15 and 40 (covering both Gen Z’s and millennials) how often they listen to podcasts. Over 60% said weekly, with no notable difference between both generations. Consumers are listening to podcasts, and they’re listening regularly. Even better, they’re listening on Spotify. This gives advertisers an incredible opportunity to reach new & engaged audiences. Leading third-party podcast publishers such as Vox and ViacomCBS favour the Spotify Audience Network. Created with advertisers in mind and boasting easy-to-use tools, the SAN allows brands both big and small to connect with listeners based on their listening habits, age, gender and location. For example, listeners of business-related podcasts are excellent targets for B2B businesses, and with the Spotify Audience Network, advertiser’s can fully leverage this opportunity to connect to potential consumers.

Music for advertisers

There’s a playlist for everything on Spotify. Literally. From rainy car rides to morning gym workouts, Spotify has you covered. And if you’re a brand/advertiser, they have you covered. Why? Interest and genre targeting.

Interest targeting allows advertisers to reach relevant audiences based on topics they’re passionate about. For example, trainer brands will likely have more success targeting those “early morning gym workout playlist listeners” than listeners of “music for rainy car rides”. Just as there’s a playlist for every kind of mood or situation imaginable, Spotify also gives listeners access to many more music genres than most other music apps. Spotify’s advertising technology makes genre targeting an appealing option for many brands so that advertisers can even target listeners of specific music genres as well as consumers with specific interests.

Gen Z and audio

In the 2021 Culture, Next Report, Dawn Ostroff, Chief Content & Advertising Business Officer at Spotify says,

“It’s been quite a year for Gen Z, a generation now on the edge of newfound independence. With traditional markers of adulthood… now on pause, Zs are eager to leave virtual events behind and resume IRL.”

Between the ages of 15 and 25, Gen Z’s are the first generation to grow up with social media. While millennials might have made it cool, it is Gen Z’s whose development has intertwined with the changing tides of the internet. So, how can advertisers hope to gain the attention of this incredibly diverse generation? While analyzing audience location, age and gender are great ways of targeting other demographics such as millennials, Gen Z’s tend to be defined more by their cultural interests. 42% of Gen Z’s believe that listening to music without contextual knowledge of its cultural significance, or even which culture it came from, is problematic. Gen Z is a socially conscious group, so when it comes to targeting this demographic, there is one thing brands should prioritize.

Authenticity

Their prioritization of cultural awareness means that Gen Z’s have in many ways popularized the micro-genre. It also means that to connect to this demographic, brands should align themselves to this ideal. By being honest and authentic, and promoting diversity in genuine ways, brands can establish a common goal with Gen Z’s and stand out from other brands. But how can advertisers target Gen Z’s in the first place?

Spotify’s advertiser technology allows advertisers to prioritize Cultural Affinity Targeting for this demographic. CAT allows advertisers to target listeners based on their intentional interactions with content around cultural moments.

Millennials and audio

Where Gen Z’s are emerging from the pandemic at the start of their adult life, millennials also have some big life decisions to make. Is working from home right for me? Should I have kids? Which school is right for my kids? Being such a large demographic (between the ages of 26 and 40), there are a wide array of challenges that millennials are facing.

As Dawn Ostroff says:

“As this generation advances in their careers and starts families of their own, the pandemic has shaken up their expectations of work-life balance. Audio has emerged as the go-to source for millennials to connect with family, stay informed, and indulge in “me time”. “

An estimated 51% of millennials claim that their social circle has grown smaller because of the pandemic. As a result, millennials are choosing to stay connected to their loved ones virtually and through audio. Spotify reports a 263% increase in in-car listening and a 59% increase in smart speakers since this time last year. So, with millennials working hard to make their home a vibrant hub for their social life, here’s how advertisers can leverage Spotify advertising to reach this fascinating demographic:

Unify

When running Spotify ads, it’s important to think about how your audience consumes audio, the needs and desires of your target audience and what attracts them to the audio they consume.

The real secret? Unity.

For an audience of millennials, this means reaching them even as they use audio as a background for their day-to-day activities, using your ads to bring people together in a time where we seek connection, and teaming up with positive and authentic podcast personalities to connect to your audience.

The final verdict

The unique power of Spotify advertising is that it is one of the few modes of advertising where brands can boast a personal, deeper connection to potential customers.

There are few other kinds of advertising where brands can reach listeners directly (as they are typically receptive and are taking time to themselves to listen to their favourite artists or podcasts).

Brands can also leverage these ads so that customers associate them with their self-care or meditative practices. Just as the Culture Next report suggests, “intimate connection” is the ultimate goal and reward for advertiser’s looking to connect to listeners.

For millennial audiences, advertisers can see great results by focusing on targeting listeners listening to Spotify audio through shared & connected devices.

And where millennials are choosing to stay at home but connect through technology, Gen Z’s are eager to return to normal. This young demographic, prioritizing cultural awareness and personal growth, can connect deeply to the brands that they truly believe in.

Brands can use Spotify’s cutting edge technology to target Gen Z’s based on their reactions to cultural moments and shifts, and position themselves as trustworthy, authentic voices.

To learn more about Spotify Ads, get in contact today.