Sweden-based audio streaming subscription service provider Spotify Technology SA (SPOT) has launched its first global brand campaign to attract new advertisers, a report published by The Wall Street Journal stated. The campaign forms part of the company’s plan to boost its advertising revenue.
Furthermore, to appeal to small and medium-sized businesses, Spotify has changed the name of its advertising unit from Spotify for Brands to Spotify Advertising. Notably, over the past years, the company mostly focused on major brands.
Spotify’s shares closed 1.2% up at $232.94 on Monday. The company boasts of more than 320 million users across 92 markets. (See Spotify stock chart on TipRanks)
Spotify plans to run the campaign via audio ads, social media and digital video on and off its platform across the globe, including New Zealand, Spain, the U.K., Australia, Canada, and the U.S. to attract podcast creators and publishers.
The Chief Content and Advertising Business Officer at Spotify, Dawn Ostroff, said, “Our goal is to start to really compete with Snap (SNAP) and Twitter and deliver on the expectations advertisers have, including small businesses.”
The campaign forms a part of the company’s plan to become the number one podcast platform in the world by overtaking Apple (AAPL). According to eMarketer’s expectations, Spotify aims for 28.2 million monthly podcast listeners by the end of 2021, surpassing Apple’s likely 28 million.
Last month, Wells Fargo analyst Steven Cahall reiterated a Sell rating on the stock with a price target of $200 (14.1% downside potential).
The analyst said, “We’ve analyzed MAU (monthly active user) growth from smartphone penetration and think consensus remains too optimistic, plus growth should come from less profitable markets.”
Overall, the stock has a Moderate Buy consensus rating based on 9 Buys, 4 Holds and 3 Sells. The average Spotify price target of $287.88 implies 23.6% upside potential. Shares have lost 25.1% year-to-date.
According to TipRanks’ Smart Score rating system, Spotify scores an 8 out of 10, suggesting that the stock is likely to outperform market averages.