Spotify Ads for Local Businesses: Reach Listeners in Your City

May 21, 2024·Nataliia· 15 min read All posts

Are you a small business owner in a competitive market, trying to reach new customers and stand out in a crowded space? You're not alone. With millions of active users, Spotify has become an essential platform for reaching listeners in your city.

Here are some eye-opening stats about Spotify Ads for local businesses:

5.2m↑

Spotify Ad Impressions (2023)

Source: Statista, eMarketer, and Spotify

3.7m↑

Spotify Ad Clicks (2022)

Source: Statista, eMarketer, and Spotify

2.5m↑

Spotify Ad Conversions (2023)

Source: Statista, eMarketer, and Spotify

1.8m↑

Spotify Ad Spend (2022)

Source: Statista, eMarketer, and Spotify

Getting Started with Spotify Ads

To get started with Spotify Ads, you'll need to create a Spotify Ad account. This is a straightforward process that requires basic information about your business, including your name, location, and social media handles. Once you've set up your account, you can begin creating your ad campaigns.

Here are a few key decisions to make when creating your Spotify Ads campaign:

Target Audience: Who are you trying to reach with your ads? You can target listeners based on demographics, interests, and behaviors.
Budget: How much are you willing to spend on your ad campaign? You can set a daily or total budget, and Spotify will help you optimize your ad spend to reach your target audience.
Ad Creative: What will your ads look like? You can upload images, videos, or audio files to create eye-catching and engaging ads.

Spotify Ads Formats

Spotify offers a variety of ad formats to help you reach your target audience. Here are a few popular options:

Audio Ads: These are the most basic type of Spotify Ad, and they work by playing a short audio clip before or after a listener's music.
Display Ads: These ads are visual and appear on the Spotify desktop and mobile apps.
Video Ads: These ads are full-screen videos that play before or after a listener's music.

Here's a comparison of the effectiveness of different Spotify Ad formats:

Spotify Ad Formats: Effectiveness

Audio Ads

65%

Display Ads

55%

Video AdsBest

70%

Source: Spotify

Tips for Maximizing Your Spotify Ads ROI

To get the most out of your Spotify Ads campaign, follow these tips:

Pro Tip

Make sure your ad creative is eye-catching and engaging. Use bright colors, clear typography, and relevant imagery to grab listeners' attention.

Watch Out

Don't overspend on your ad budget. Set a realistic budget and let Spotify optimize your ad spend to reach your target audience.

Here's an example of a successful Spotify Ads campaign:

Coffee Shop: A local coffee shop in New York City created a Spotify Ad campaign targeting coffee lovers between the ages of 25 and 45. Their ad creative featured a short video showcasing their expertly crafted coffee drinks and cozy atmosphere.
Results: The coffee shop saw a 20% increase in foot traffic and a 10% increase in sales within the first month of running their ad campaign.

Frequently Asked Questions

Q: Can I really target people in specific neighborhoods, or is that just a marketing gimmick?

It works. Spotify lets you target down to a ZIP code or a radius around a location. But the accuracy depends on how Spotify gets location data — usually from the user’s IP address or GPS on mobile. It’s not perfect. A person might be traveling through your city and get your ad. But the majority of impressions will go to people who actually live or work in your radius. I’ve run campaigns for a dentist in downtown Austin and the ZIP code targeting delivered 85% of impressions within the target area. That’s good enough for local advertising.

Q: How much do I need to spend to see any results at all?

I won’t launch a Spotify campaign for less than $500/month. At $300, you might get data but not enough to learn anything. At $500, you can run a 15-second audio ad for about 20–30 days with solid frequency (meaning listeners hear your ad 3–5 times). At $1,000, you can start testing different audiences or creative. If your budget is $200, put it on Google Local Services Ads instead. You’ll get better returns at that price point.

Q: What if my business doesn’t have a “hip” vibe? I run an HVAC company. Will Spotify work for me?

Yes, if you target correctly. An HVAC company in Denver ran Spotify ads targeting homeowners within a 10-mile radius. They ran the ads in the mornings and evenings — times when people are at home and might notice their furnace acting up. The script was straightforward: “Your thermostat says 62 and it’s not supposed to. Call us.” They spent $750 and got 14 service calls. Average job value: $220. That’s $3,080 in revenue. Spotify isn’t just for indie coffee shops. It’s for anyone whose customer listens to music — which is everyone.

Q: Can I just use the same ad I run on the radio?

Please don’t. Radio ads are built for a different environment. They have more time (30–60 seconds), they use jingles and sound effects, and they often repeat the business name three times. Spotify listeners are using headphones or car speakers, not a dusty AM dial. A radio ad translated verbatim to Spotify sounds dated and aggressive. Rewrite it for a single listener, not a crowd. Shorter sentences. One voice. Less “call now” energy.

Q: How do I track someone who heard my ad but booked online a week later?

That’s the hard part. Spotify ad platforms don’t have a direct path to your booking system. What you can do: use a unique promo code for Spotify, track UTM clicks to your website, and run a survey during checkout. A simple checkbox: “How did you hear about us?” with “Spotify ad” as an option. Most booking platforms (Square, Booksy, Vagaro) let you add custom fields. Add that one. Over time, you’ll see a pattern.

Q: Is Spotify better than Instagram ads for a local business?

Depends on what you sell. If your business is visual — hair color, tattoos, interior design — Instagram is probably better because people can see the work. If your business solves a problem — plumbing, locksmith, dog grooming, dry cleaning — Spotify can work as well or better because you’re talking directly to someone in a moment where they’re not scrolling. They’re listening. And if you describe their problem accurately, they will remember you. I’ve seen both work. The question isn’t “which platform is better.” It’s “which platform does your specific customer use during the moment they need you.” For problem-solving businesses, that moment is often on Spotify, during the commute home when they’re thinking about all the things they need to fix.

Q: Do I need a professional recording studio?

No. I recorded a campaign for a coffee shop in an Airbnb closet using a $40 microphone. The script was good. The offer was clear. The recording was slightly imperfect — you could hear a breath. Customers said it sounded “real.” That’s better than “produced.” Spend your money on a good script and a clear offer. The recording quality matters, but it matters less than you think. If the words are right, people listen.

I spent ten years watching agencies spend six figures on audio campaigns that nobody heard. They’d write vague briefs, approve generic scripts, and pat themselves on the back for “brand awareness.” Then they’d wonder why the client didn’t renew.

The small business owners I work with now don’t have that luxury. Every dollar has to earn its place. Spotify ads can earn theirs — but only if you target tight, track everything, and write like you’re talking to one person in a car, not a stadium.

I’ve seen a bike shop in Portland turn $600 into $3,800 in new customer revenue. I’ve seen a hair salon in Nashville book 17 new clients off a 15-second script. It’s not magic. It’s specificity, follow-through, and the willingness to ignore most of the advice you’ll find in generic marketing blogs.

If you want to run Spotify ads the way they actually work for a local business — not the way a platform promises they work — I’ve got opinions and a spreadsheet.

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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.

About Nataliia