Spotify: We pulled back ‘too significantly’ on marketing
Admitting to pulling back too far on marketing in 2023, the streaming giant will direct new funds into acquisition and “reactivating high value users”.
Spotify says it is “correcting” a decision to pull back “too significantly” on its marketing spend in 2023, with new funds being channelled towards “enhancing” the user base.
However, the business has no intention of returning to previous levels of marketing investment, CEO Daniel Ek told investors yesterday (23 July) on the release of Spotify’s second quarter results.
“To be clear, we’re not going to go back to what we were doing before. We still continue to expect improving profitability over the course of this year and into the next. And new funds are being directed towards acquiring and reactivating high value users to enhance our base with their deeper engagement and loyalty,” he explained.
