AI Case Study

Spotify measures effectiveness of digital ads on foot traffic in real world locations with machine learning

Spotify has partnered with Foursquare to leverage its machine learning technology, a platform called Attribution, to measure the effectiveness of advertiser campaigns in the real world.

Industry

Consumer Goods And Services

Entertainment And Sports

Project Overview

"Spotify is working with Foursquare to connect the ads its listeners experience to the brick-and-mortar businesses they visit, as the digital streaming service looks to a range of partnerships to enhance its marketing offerings since becoming a public company." (geomarketing)

"As Spotify’s new location measurement partner, Attribution by Foursquare will be measuring offline attribution for ads running across all devices, including mobile app, desktop app, tablet, web, and connected devices (gaming consoles, connected TVs, and connected cars). Anywhere that Spotify delivers ads across all formats (audio, video, display, and sponsorship), Attribution by Foursquare will be able to measure real world results." (Medium)

Reported Results

Results undisclosed

Technology

"Here’s how it works: instead of just comparing people that were or weren’t exposed to a given ad based on four simple factors (age, gender, DMA and recency), we are now able to incorporate more than 500 different attributes into the equation to understand if it was truly the ad that drove them into that sandwich shop, big box store or movie theater, or the fact that they might have wound up there anyway. Our machine learning methodology allows us to factor in everything from historical visits, time of year, day of the week, distance from store, what apps and platforms a person uses, and so much more, in order to determine what truly drove visit lift." (Medium)

Function

Marketing

Marketing Research Planning

Background

Linking virtual advertising with real world actions is one of the holy grails of advertising - especially for physical store retailers keen to understand the real world impact of their digital marketing spend.

Apart from the 75 million premium uses that get no ads, Spotify has 99 million basic users that are ad-supported listeners. The company is working to connect those to the brick-and-mortar businesses they visit.

Benefits

Data

More than 500 different attributes, such as historical visits, time of year, day of the week, distance from store, what apps and platforms a person uses.