We’ve acquired Video Game Insights (VGI)!
Sensor Tower · Seema Shah · September 2024
Spotify Wrapped is on a Roll
Audio streaming apps are seeing US MAUs and downloads decline YoY, per Sensor Tower estimates, potentially a response from American consumers that have cut spending on discretionary items. US ad spend across the top audio streaming platforms has fallen by 15% YoY in 1H24, though audio advertisers have an opportunity to gain new subscribers with the upcoming holiday season.
Key Takeaways:
Per ST data, Spotify allocated 12% and 5% of its overall spend in 4Q22 and 4Q23, respectively, to creatives promoting its annual Wrapped campaign. Spotify actually pulled back spend connected to Wrapped in 2023, down a staggering 60% YoY in 4Q23.
Spotify saw downloads spike by ~90% DoD in 2022 when Wrapped launched vs 60% in 2023; however the uptick in DAUs was remarkably similar both years, up 14% and 13% DoD in 2022 and 2023, respectively
As of 2024 YTD, Spotify, SiriusXM, and Amazon Music are the main advertisers across the audio advertisers cohort, accounting for 46%, 29%, and 22% of spend, respectively. Of the top 3 advertisers, SiriusXM is the only platform that has increased advertising spend in 2024, up 50% and 85% YoY in 1Q24 and 2Q24, respectively
Spotify boasts an incredibly strong percentage of retained users, at 91%, nearly 20ppts higher than any other streaming app, while YouTube Music has seen more volatility than the rest of the cohort as retained users dropped 11ppts YoY in 4Q23, while experiencing a similar surge in new users, up 11ppts
iHeartRadio’s free subscription model may be contributing to a low retention rate among its audience, as only 5% of users return to the app nearly 30 days after downloading it, compared to 27% and 19% for Spotify and YouTube Music, respectively, both of which offer (paid) premium, ad-free listening experiences
For more information, request the full report from reports@sensortower.com.
