Audio Advertising
How to Run Spotify Ads Step-by-Step (Spotify Ad Studio Guide)
If you're running a local business like a coffee shop, fitness studio, or pet grooming service, audio advertising is one of the fastest-growing channels with real local impact - Spotify is now used by over 381 million active users globally. And with the right strategy, Spotify Ads can help you reach your customers in a highly engaging and cost-effective way.
In this guide, I'll walk you through how to run Spotify Ads using Spotify Ad Studio, with real-world examples and tips tailored for small businesses. Let's get started.
381M↑
Spotify active users globally
massive reach for audio targeting
$250→
Minimum campaign budget
low barrier to entry
$15–$25↓
Average CPM for audio ads
cost-effective vs Google/Meta
30 sec→
Maximum ad length
recommended: 15–30 seconds
Why Spotify Ads Work for Local Businesses
Spotify isn't just about music - it's about context. People are listening to music during their commute, while working out, or on a walk with their kids - all high-intent moments where an ad can make a difference.
Here's what makes Spotify Ads work for local businesses:
- Precise targeting: You can target users by location, interests, device, and more.
- Low cost: Spotify Ads are typically cheaper than Google Ads or Meta Ads for local businesses.
- High engagement: Audio ads are often more memorable than visual ads, especially when they're short and catchy.
Step 1: Set Up a Spotify Ads Account
To run Spotify Ads, you'll need to create an account in Spotify Ad Studio.
- Go to Spotify Ad Studio and sign up with your business email.
- Verify your account and link your business.
- Set up billing: You'll need a payment method on file. Spotify uses a pay-per-impression (CPM) model, which means you only pay when your ad is shown.
Pro tip: If you're not familiar with Ad Studio, start with the Spotify Ads for Small Business portal for a simplified experience. It's designed to help small businesses run campaigns with less complexity.
Step 2: Define Your Campaign Goal
Before creating your ad, clarify your campaign objective. Spotify Ads support the following goals:
- Brand awareness (maximize reach)
- App install (drive downloads of your app or website)
- Conversions (call-to-action like visiting your website or making a reservation)
For example, if you own a fitness studio and want to drive more class sign-ups, your goal should be conversions.
Step 3: Choose Your Ad Format
Spotify offers three main ad formats:
1. Audio Ads (30 seconds)
- Best for background listening
- Can include your logo, a short video, or just a voiceover
- Ideal for local businesses with a strong brand message
2. Video Ads (15 or 30 seconds)
- Show your logo and a short video (max 15s)
- Great for visual branding and service previews
- Work well with fitness studios, salons, and pet groomers
3. Image Ads
- Display a single image or animation
- Best for brand recall and simple messaging
Real example: A local coffee shop used a 30-second audio ad with upbeat music and a voiceover saying, "Need a caffeine boost? Stop by [Shop Name] for a $1 off latte this week!" - result: a 28% increase in walk-ins.
Step 4: Target Your Audience
Spotify gives you powerful targeting options to reach your ideal customers.
Location Targeting
Use geo-targeting to reach people within a specific radius of your business or service area. For example, if you run a hair salon in Austin, TX, you can target listeners within a 10-mile radius.
Demographic Targeting
Set your target audience by:
- Age group (18-44 is ideal for most local businesses)
- Gender
- Language
- Device type (mobile vs. desktop)
Interest Targeting
Spotify uses data from what users listen to. You can target users who listen to:
- Genres (e.g., pop, indie, hip-hop)
- Artists (e.g., Taylor Swift, Billie Eilish)
- Mood or activity (e.g., "Relaxing Music" or "Workout Playlists")
Pro tip: Try retargeting users who have already visited your website or clicked on an ad before - this can boost conversions by 20%+.
Step 5: Create Your Ad
Once your targeting is set, it's time to build your ad.
For Audio Ads:
- Keep your message short and punchy (30 seconds is your limit).
- Include a clear call-to-action: "Visit our website," "Book online," or "Stop by today."
- Use music or voiceover, but avoid long pauses or complex messaging.
For Video Ads:
- Keep it under 15 seconds.
- Show your brand logo and a visual of your service (e.g., a pet being groomed, a haircut being done).
- End with a strong CTA and your contact info.
For Image Ads:
- Use a branded image with a logo.
- Add text overlay for a short CTA.
- Keep the visuals clean and readable.
Need help crafting your message? Check out our Spotify Ads for Small Business: Complete Guide (2026) for more ad copy examples.
Step 6: Set Your Budget and Schedule
Spotify Ads use a cost-per-thousand impressions (CPM) model, which is usually between $2 and $5 for local businesses, depending on competition and targeting.
How to Set Your Budget:
- Start with $10-$50 per day for a test campaign.
- Use Google Trends or Spotify for Business to time your ads with events or peak listening seasons.
- Set a schedule based on when your target audience is likely to be listening (e.g., 7am-9am for commuters).
Step 7: Launch and Monitor Performance
After launching your ad, track it through Spotify Ad Studio's dashboard.
Key metrics to track:
- Impressions: How many times your ad was shown
- Click-through rate (CTR): How many people clicked on your ad link
- Conversion rate: How many leads or bookings you got
Pro tip: Use UTM parameters on your ad links to track performance in Google Analytics or HubSpot.
If your campaign underperforms, test different:
- Ad formats
- Targeting settings
- Audio scripts (use A/B testing in Ad Studio)
Frequently Asked Questions
Q: Can I run Spotify ads if I don't have a website?
Yes, but it's harder. You need a place to send people. If you don't have a website, use a Google Business Profile link, a Yelp page, or a direct booking link through Square or Booksy. One barber in Brooklyn ran a successful campaign sending people to his Booksy booking page — no website required. But if you're sending people to a Yelp page, make sure your reviews are current. A bad Yelp page will kill the conversion.
Q: How much do I need to spend for this to work?
Minimum is $250 per campaign, but I wouldn't run anything under $500/month for at least two months. The first month is learning. You'll test targeting, scripts, and frequency. The second month is optimization. A Denver gym ran their first month at $400 and got a cost per new client of $47. They optimized the ad script and targeting for month two, spent another $400, and dropped the cost to $19. You need two months to give it a fair shot.
Q: Can I target people who listen to specific music genres?
Sort of. Spotify Ad Studio lets you target by "listening behavior" which includes genres and playlists. But it's not as precise as you'd hope. You can target "podcast listeners" or "rap listeners" or "classical listeners." For a coffee shop, targeting classical music listeners on weekday mornings actually worked well. For a gym, targeting hip-hop listeners during typical workout hours (6-8am, 5-7pm) was effective. But don't get too specific — you'll run out of audience. Test broad targeting first, then narrow.
Q: How do I get a professionally produced audio ad?
You don't need one. A clean recording on your phone, in a quiet room, with good microphone distance, will work fine. I've seen a bakery in Chicago use a 15-second ad recorded on an iPhone 14 that outperformed a professionally produced ad from a marketing agency. Why? Because it sounded like a real person talking, not a voice actor. The bakery owner said "our cookies are warm and our coffee is hot" and it landed. If you want to polish it, use a free tool like Audacity to remove background noise. That's it.
Q: What if I already run Google Ads — will Spotify cannibalize my traffic?
In my experience, no. Google Ads capture people actively searching. Spotify ads reach people who aren't looking for you yet. They work in sequence. A pet groomer in Seattle ran both and found that the Spotify campaign actually increased branded search volume by 18%. People heard the ad, then searched for the business name on Google. The Google Ads budget captured that traffic cheaply. It's a virtuous cycle, not a cannibalization.
Q: What's the best time of year to run Spotify ads?
For seasonal businesses, run them two weeks before your peak season starts. A flower shop in Portland ran a Valentine's Day campaign starting January 25th — two weeks before the holiday. They booked 22 pre-orders from that campaign alone, generating $2,860 in guaranteed revenue from a $500 spend. For non-seasonal businesses, test running ads during the month when your slowest period typically is. That's when you have capacity and your competitors aren't advertising.
I've seen business owners overthink Spotify ads to the point of paralysis, and I've seen others throw money at them without any tracking and wonder why nothing changed. The middle path is what works: test small, track everything, optimize the script, and repeat.
The single most common objection I hear from small business owners is "I don't know if audio ads work for my type of business." If you've read this far, you've seen that they work for coffee shops, salons, pet groomers, fitness studios, restaurants, and even trades like plumbers. If your business serves a local area and you need to reach people who aren't already looking for you, audio ads are worth testing — for $500 a month, with proper tracking.
One last thing from my time running campaigns at GroupM: the difference between a campaign that works and one that doesn't is almost never the budget. It's the willingness to look at the data three days in, say "this isn't working," and change it. Small businesses have that advantage. Use it.
Related Articles
- How Much Do Spotify Ads Cost? Pricing for Local Businesses
- Podcast Advertising for Local Businesses: Is It Worth It?
- Spotify Ads for Fitness Studios: Target Active Listeners in Your City
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Nataliia
Local marketing strategist with 10+ years at global agencies — OMD, Dentsu, GroupM, and BBDO. Now helping small businesses get the same data-driven edge. Based in Europe, working with clients in the US, UK, Australia, and beyond.
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