It's all about the first impression. Whether you're launching a startup, product or feature, the launch can make or break it. It's the shining moment when all eyes are on you.
Better make the most of it.
There are stories of how some companies got it right, but one that stands out in particular: Spotify.
Looking at the success of Spotify, to the tune of over 2.5 million paying subscribers, there's one thing that sticks out in my mind… the launch. The fact is that many similar services existed long before. Folks like Rhapsody, Rdio and MOG had the coveted first to market advantage. They had it won. Spotify wasn't the first to market, at least in the US. Yet, everyone in the US was anxiously awaiting Spotify. Foaming from the mouth anxious.
Spotify are masters of the launch. Artists, aficionados, ninjas -- pick your favorite flavor. So, how'd they do it? How can you achieve the same launch success? Let's take a look at how they did it.
Private Beta
Exclusivity, it's the value that comes from launching in private beta. Spotify executed the private beta beautifully. The concept is simple; grant invites to a select few, those select few have a limited number of invites to grant to their friends, and so on, and so on. It's a process that inherently brings discussion, need and distribution. Just look at the buzz.
There's some subtle detail there, though. Beta invites are like a spigot, if you turn it on full throttle, the well will dry up quickly. If you open it slightly, the water comes out slower, and more controlled. Spotify only granted users a limited number of invites. It created scarcity, and allowed them to control their growth. Now that the service is scalable and distribution became widespread, they turned it on full force.
Geographic Segmentation
Faceook famously used geographic segmentation. In one of my favorites, The Social Network, Sean Parker uses the term "little big horn" to describe the strategy of planting Facebook at surrounding campuses of the one they were looking to target. Spotify launched in a similar fashion, however unintentional, just on a larger scale.
Being in the states, all we ever heard was that Spotify was coming. Again, again, and again. So we waited. Then, we waited some more. Finally, it arrived and everyone had to have their hands on it. I too couldn't wait to use it, even though I was already happily using Rdio. If they would have just opened the doors in the US without any prior buildup, that outcome would've been much different. Instead, it looked like this.
The "Right" Press and Subtle Hints
You don't need press to be successful, but it sure helps. Especially at launch. But there's a difference between press, and the "right" press. Most folks think that landing a few articles in TechCrunch is all you need to do to get that first wave of users that you can ride to the bank. Wrong.
Press is strategic, and you need to put your message in the hands of the right market. For some (including Spotify) TechCrunch, LifeHacker, and Mashable were part of the right audience. Their readership had those coveted, tech loving early adopters. That wasn't all they did, though. They got their message in front of music lovers through outlets like Rolling Stone, MTV, Spinner, etc. Press means nothing if your target user isn't reading it.
It's important to also note how they released their news. Apple infamously uses subtle hints for every single product they release. They give fanboys (like myself) just enough information to stir the pot, without spilling the beans. It causes a frenzied debate over what the latest and greatest announcement will be. Spotify did the same thing for their expansion into the US, and most recently with their announcement of a "new direction." A taste is all that's needed to make someone start salivating.
Influencers
If the subtle hints and amazing press didn't draw you in, surely the breadth of celebrities boasting about the service did. Tweets from Ashton, Britney Spears, Trent Reznor, Talib Kweli and countless others constantly filled the interwebs. All of the right people in the music space were talking about Spotify. Influencers in a niche can provide the social proof and validity that many early stage companies lack, with the click of the tweet button. Spotify took care of their influencers, and the favor was returned.
Virality and Innovation
How can you make the most out of a massive influx of beta users? You build viral features that encourage sharing and new user acquisition, of course. Luckily for Spotify, music is inherently viral. People enjoy sharing the music they listen to. So, Spotify built features into their service that made it easy to share the music you were listening to. They took it a step further to making it completely thoughtless with the new Facebook integration. But they made sure to encourage action from the other end, as well. Every song that gets shared on Facebook has a nice little play icon next to each song. When a user clicks on it, a Spotify registration action appears.
Fuel for the launch fire.
Not only did Spotify build new user acquisition into their DNA, but they made the platform sticky by continuing to innovate. The launch is only a means to an end. What you do after you get users in the door is a whole 'nother discussion.
Conclusion
Spotify won the launch game. They were strategic, precise and had all of the necessary pieces to the puzzle. They realized that a launch isn't just throwing up a blog post and callin' it good. There are deep, powerful implications that result from launching properly.
It made Spotify, will it make you?
Wonderful marketing case history Andrew; I do really like these posts. I would just add 1 thing that did the success of Spotify launch: the constant positive buzz coming from the its European users. In twitter/Facebook world I personally believe it was one of the main reason of that success (apart that it is a great product).
This photo will reveal their future planning and exploring to other countries as well.
Look at this photo -
https://dl.dropbox.com/u/12871439/Spotify%20Marketing.PNG
Very good point, Gianluca. The prior success of Spotify in Europe definitely played a big part in their US adoption.
I think you left out an important factor: It was unlimited usage and free to start off.
That's it. That's the only reason I tried it out (and eventually stopped using it). It wasn't just 'free for 2 hours a month', but during launch it allowed users to test drive what a paid account would get them.
I have to agree. I'm sure plenty joined for the exact same reason (I sure did). We can see now as the amount of advertisement's between songs is growing, that the number of users is declining.
Whilst the original post has mentioned the facebook intergration, you seem to miss its negative effect on Spotify within its community. I see it being much like how Netflix saw a dip when they introduced a higher base price.
Whilst getting the launch of a product right is a great help in creating success (and Spotify did this), it is the continuation of that success which really matters.
Like we all do ... Free Trial for 30 Days.
In our case we give FREE REVIEW to top and respected members of forums.
I'd obvioulsy argue that there was a lot more than just the free version of Spotify that propelled it to where it is now. Of course, freemium can do a lot for adoption of the product, but there's countless companies that opened the doors wide and flopped.
The buzz and need that Spotify created pre-launch in the US was the first step, the product hook was a secondary (and very important) piece.
Free option was just another arrow their marketing skill.
There is no doubt that all arrows hit the bulls eye.
I think the biggest factor in the marketing for Spotify was the Word of Mouth factor, and the real viral sense. Every on is talking to their friends to sign up hense the explosive growth. Also as said they have heaps of celbs and free media to back it up.
Nice, this is spicy!
Idea of a private Beta is common and used by many big brands like Facebook and Google+ recently! And I think it’s pretty much a good idea, as this allows people to talk about the brand.
Share it to Social Network (facebook) is common but they its presented is very awesome and this actually encourage user to share…
As far as the Influencers are concern this was a sexy idea… no matter if they had the budget for it or you actually plot influencers and naturally force them to tweet about the product (this is possible but sometime take lot of time)
It was a very sexy U.S. launch. Now I just need them to add FLAC support and I'll never load my other music player ever again.
Nice analysis and explanation. Way to learn from others. It's definitly important to, like you said, turn the spigot on the right amount. Supply and demand.
Thanks
Spotify should write a chapter in college marketing classes regarding product launch!
Great article, Andrew!
This is definitely a must read for anyone who want to launch products or services.
It's bookmarked and I will definitely come back to check it again later.
Really, the strategy they used for their promotion is something other in development brands can used. Private beta is one of the best strategy in order to learn reviews about your product from limited people which definitely help Google+ in launching, unlike their Google Buzz which was integrated into our gmail without our permission & before testing it.
Nice post Andrew!!!
Excellent snapshot - there's only so much you can cover in a few hundred words, so well done for sharing this mid-level view...plenty of learnings for new startups...clearly the best takeaway: marketing strategy starts on your first day as a start up, not when you are ready to go live...
What a damn good, well thought out and planned article!! Thanks for the information, I can keep in mind and integrante into my ststem soon :) -Not too farmiliar with spotify, but I'' be checking on your website more. :) Thanks for a great post!
I literally just wrote down notes from this article for our startup (incentibox) in social media marketing for ecommerce. Thanks for the awesome article, Andrew! I especially appreciate the data to support your points.
Happy Holidays!
Pumped to hear that, Justin. Best of luck!
Hi Andrew,
good post. thankx for sharing.
What i would like to ad.. It surprises me that nobody started about the brandname itself..
Spotify.. hear it once and it just sticks. And it got a strong positive connotation.
Can't put my finger on it why but it does.
mno
It was indeed a great launch.
I usually fell on those subtle hints. It touches on the human emotions such as excitement, curiosity, sense of anticipation etc. And will only and always led to dicussions which we can equate to prelaunch promotion.
We all play a very significant role in these launches.
Don't you think we all deserve to give due credits to ourselves for the success of all these successful launches? :)
Great job Andrew. Great job Spotify!
I am sure they do have brilliant PR managers. Not only huge brands can learn from them - smaller business launches will profit from the same strategy, too.
Thanks AndrewDumont for the intereseting post! I have learned that if you have a concept/stuff which is quite helpful in terms of their usuability for a particular group of people and if you release it with a perfect control in beta mode towards some real group of people, it helps in creating much buzz about that product! Spotify did in great way, now I am waiting how does it start in India! Facebook timeline and Google+ have used full advantage of Beta invitations! Google has already planned same step for their another interesting site i.e. Schemer.com!!(best example for now)
I have some examples , which either chose to do over advertising or just not advertising their products( these products were of Big brands) 1. Apple Newton--they did not do any promotion 2. Coca Cola's coke in 1982--they did over advertisment .. and hence these products failed... I think they should have learned these things of creating buzz( it can be done in offline world also because in 1982 ,internet was not so much developed at all.)
thanks again
Every step of the way, I wonder to myself, how could this be integrated into affiliate-based marketing...
Obviously, someone seasoned in affiliate marketing would take each historical step of the spotify process, and apply it accordingly.
Also, further reading into Spotify brings up Sean Parker, whom is very experienced producing viral innovation. So much to learn...
Nice case study - I wonder how much marketing budget they had to get the celebrities & bands on board?
I really like the idea of hype - anticipation's where it's at!
..not available in Australia still! Ah well, back to soundcloud.com & mixcloud.com for me then :)
I have been using spotify for nearly 3 years - must have joined soon after it was launched, love it and believe it really shows how things can be done,
Interesting and thoughtful, thanks!
Good read, Andrew. I'll be looking for more from you regarding branding. I like how you called attention to the slow trickle of the launch, creating mystery and intrigue. I liken it to new, popular clubs making people wait outside just to make it appear more is "happening" inside than really is.
Great post Andrew. I wondered for some time why they took so long to launch in the US.
Another thing to add is that everyone was extremely positive all the way through for Spotify. If everyone had had the common 'Is this good, let's analyse it and review it thoroughly' mentality which is what happens with most launching companies/products, buzz and growth would have been much slower. Instead, Spotify got a fast pass straight to the hype stage.
You can have all the marketing buzz you want, but it has no good long-term effect unless it's backed by a great product/service, which is what Spotify has.
Exactly, the quality of the product definitely lead them to where they are now. The launch only opened the door.
There doesn't any matter where a big brnds were paid or not paid, always they are sucessfull.
This is effect of pre launching exercises done by SPOTIFY team.....well-done.. And thanks to Andrew to share this with us so i can use same method to launch a site.....
Really great to see how Spotify launched.
And not only in the States but also in the Netherlands. Is getting moe popular by the day and one of the reasons is facebook integration.
Great article.
Until they can fix this problem though, artists will have more success giving away their music than getting paid $1 per 3200 plays on Spotify: https://derekwebb.tumblr.com/post/13503899950/giving-it-away-how-free-music-makes-more-than-sense
Very sad since its not available in India, anywayz liked how much hype was given before its launch also the way of viral marketing which was initiated while launching (analytics graph shows everthing).
All the very best for the future of 'Spotify' , hoping it will be launched in India soon.
Really cool to see the MOZ team addressing this. Being in the music vertical for a few years, the Spotify launch was done to PERFECTION. It also helped that their product kicked their competitor's asses and delivered.
Spotify is very much more then just a cool service or cool product launch...it's going to change the music buisness, as much as they (the industry) doesn't want it to. Thanks for covering this!
Did you know that a former SEO was (at least partially) behind it? Shakil Khan, who used to be a regular on the SEO scene, is the #2 guy at Spotify now :-)
great post! It's always cool to know such stories because they give us tons of idea about marketing campaigns and a lot of excitement for future opportunities.
And, above all: you cited Trent Reznor on this article, another great innovator.
thanks for sharing!
You hit on a great point about private invites. Carefully managing how much demand by regulating how much supply there is. I imagine that is a tough balance to strike.
The win-win with the private invites is that you have a user base providing you with usage data and allowing you to iron out any bugs, as well as fuelling the hype machine and making people salivate at the chance to get an invite!
Of course, private invites worked so perfectly in this case because of what was mentioned above: there was already some buzz coming from Europe... so people in the US were waiting anxiously to be invited to Spotify. I guess this would be harder for a completely new and unknown company (but not impossible) :)
But I agree, private invites are great way to grow in a controlled way and to fix any bugs the platform might have during the initial stage.
Greetings Champion!
You sung a tale with the prowess of a Bard, well written good sir.
Justin Smith
I personally haven't used spotify, but I have heard great things about it. However, another deterrant that I have heard from consumers was the fact that Spotify, after the update, has not worked for android phones. I believe that the technical issues might just outweigh the entire marketing aspect, regardless of how well the launch was.
Great case study there - I'd be quite interested to know how much their setup / marketing budget was in the begining, they did everything right but you've got to question how many business could (afford to) do everything they did
@Tof, Jennita and Moosahemani,
I was just stating a fact, i am not against these strategies infact i support them. All i wanted was to clear the myth on how they got these tweets.
Let not manipulate people by highlighting it as if it was free.
- Sajeet
Understandable, however I don't think Andrew was trying to manipulate people in any way.
Definitely no intention of manipulating, simply pointing out how they went to market in the US.
The cost is irrelevant. And for the record, it's very much possible to get that support without slipping some cash under the table.
Big names tweeted about the brand? Seriously? One need not be an Einstein to realize that obviously there was a marketing budget associated with this strategy. But the trick is to make it look natural to the target audience.
Like it or not Andrew but the harsh reality is that the big names who have tweeted about the brand obviosuly got their own fair share if you know what i mean. Same strategy would also have been extended to Techcrunch.
Bottom-line, if you invest in the right mediums and the right people, whether your brand is good or bad, you will always get that initial push. Later it is totally up to the brand to live up to the hype and the quality of service delivered.
- Sajeet
I agree but I still wanted to believe that there are ones that tweeted because they sincerely believe and like it. :)
Whether the big names were paid or not doesn't matter. It was still part of a very successful launch.
even if it is the part of their budget, i would call it a sensable investment!
I think you're missing the point.
The launch is the marketing strategy. Regardless of whether or not the celebrities were compensated for tweeting about Spotify (which, I doubt they were), it's something that got the influencers in the music industry and their fans talking about Spotify. The end goal. Rather than direct compensation, I think you can attribute the support by these influencers to getting them on the service early, and having their best interest tied directly to how Spotify does -- with every person that subscribes to Spotify, good ol' Britney gets a few more bucks in here pocket.
All that said, your last paragraph hit the nail right on the head. :)
And, for the record, sites like TechCrunch don't publish stories for money. There's a certain level of editorial integrity that they have to keep to stay relevant.
SPOTIFY!!!!!!!!!!!!!!