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Could Spotify use the Internet of Things with their service? Share a couple of innovations they could add that would fit into this category

Could Spotify use the Internet of Things with their service? Share a couple of innovations they could add that would fit into this category

Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Could Spotify use the Internet of Things with their service? Share a couple of innovations they could add that would fit into this category
Spotify is also using its vast data and analytical prowess to both win back skeptical artists who've left and also to attract new artists who are so important to the firm's future success. The company launched its Spotify for Artists app that gives artists access to data about their fans, including which playlists create new fans for the artist and how many streams the artist's music is getting. The app also gives artists some control over their presence on the service, with the ability to update bios, post playlists, and specify which track is the "artist's pick." And Spotify's Fans First program helps to identify the artist's most passionate fans, allowing the musicians to target them with special offers. In 2019, the company acquired the music-production service SoundBetter, which allows record labels to promote new music to specific Spotify listeners. Spotify expects this "two-sided marketplace" focused on tools and services supporting artists and their representatives to grow by 50 percent in 2020. The usefulness of Spotify's vast data stretches well beyond listeners and fans. It also contains a treasure trove of marketing-relevant information that can help advertisers choose which users it most wants to reach. Spotify for Brands is a program that allows marketers of all sorts of goods and services to laser-focus their ads, using insights gleaned from the data that, according to its website, "reflect the real people behind the devices." Music is driven by consumers' real or desired self-identities, a factor that many companies use in advertising. The data also help to determine optimal ad placement timing. Selling Gatorade? Playing an ad at the end of a workout sounds good. Today, Spotify differentiates itself from its competitors by the deeper way that it views customer data. But in its early days of using data analytics, the firm focused mostly on standard fare, such as keeping track of online customers after they left its website (known as retargeting). Now Spotify has reimagined customers as not simply clicks or transactions, but rather as unique human beings with changing needs, wants, and preferences that influence their choices in music and in products. As such, Spotify's goal is to build lasting connections with its users and other stakeholders, understanding how people consume the music they select and then applying those insights to better serve its customers and support its advertising clients' goals.
Transcribed Image Text:Spotify is also using its vast data and analytical prowess to both win back skeptical artists who've left and also to attract new artists who are so important to the firm's future success. The company launched its Spotify for Artists app that gives artists access to data about their fans, including which playlists create new fans for the artist and how many streams the artist's music is getting. The app also gives artists some control over their presence on the service, with the ability to update bios, post playlists, and specify which track is the "artist's pick." And Spotify's Fans First program helps to identify the artist's most passionate fans, allowing the musicians to target them with special offers. In 2019, the company acquired the music-production service SoundBetter, which allows record labels to promote new music to specific Spotify listeners. Spotify expects this "two-sided marketplace" focused on tools and services supporting artists and their representatives to grow by 50 percent in 2020. The usefulness of Spotify's vast data stretches well beyond listeners and fans. It also contains a treasure trove of marketing-relevant information that can help advertisers choose which users it most wants to reach. Spotify for Brands is a program that allows marketers of all sorts of goods and services to laser-focus their ads, using insights gleaned from the data that, according to its website, "reflect the real people behind the devices." Music is driven by consumers' real or desired self-identities, a factor that many companies use in advertising. The data also help to determine optimal ad placement timing. Selling Gatorade? Playing an ad at the end of a workout sounds good. Today, Spotify differentiates itself from its competitors by the deeper way that it views customer data. But in its early days of using data analytics, the firm focused mostly on standard fare, such as keeping track of online customers after they left its website (known as retargeting). Now Spotify has reimagined customers as not simply clicks or transactions, but rather as unique human beings with changing needs, wants, and preferences that influence their choices in music and in products. As such, Spotify's goal is to build lasting connections with its users and other stakeholders, understanding how people consume the music they select and then applying those insights to better serve its customers and support its advertising clients' goals.
What roles will data analytics play in the next chapter of Spotify's growth? While chipping away at competitors' market share in the core business of music streaming is fine, the big prize likely will come by pursuing other ventures. Imagine almost anything connected to music and its stakeholders, from smart speakers to selling exclusive lines of makeup that its artists use. Do you like to listen to podcasts? In 2019, Spotify acquired two big producers of podcasts, Anchor and Gimlet Media, signaling a big focus on this other hot audio product in the future. Spotify is in the midst of a remarkable transformation in which artists are moving from foes to fans of its offerings and business model. Whatever direction it takes, it's fairly certain that Big Data and smart use of analytics will drive those strategies, resulting in deep understanding of Spotify's stakeholders and providing them with a great experience with the firm's offerings. 62
Transcribed Image Text:What roles will data analytics play in the next chapter of Spotify's growth? While chipping away at competitors' market share in the core business of music streaming is fine, the big prize likely will come by pursuing other ventures. Imagine almost anything connected to music and its stakeholders, from smart speakers to selling exclusive lines of makeup that its artists use. Do you like to listen to podcasts? In 2019, Spotify acquired two big producers of podcasts, Anchor and Gimlet Media, signaling a big focus on this other hot audio product in the future. Spotify is in the midst of a remarkable transformation in which artists are moving from foes to fans of its offerings and business model. Whatever direction it takes, it's fairly certain that Big Data and smart use of analytics will drive those strategies, resulting in deep understanding of Spotify's stakeholders and providing them with a great experience with the firm's offerings. 62
Expert Solution
Step 1 Introduction

The Internet of Things (IoT) refers to the growing network of connected devices and sensors that are able to exchange data and communicate with each other. This technology has the potential to revolutionize many industries, including the music streaming industry. Spotify, one of the leading music streaming services, could leverage the IoT to enhance their service and create new innovations for their users. 

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