Spotify’s media assessment has concluded at present with the account awarding international media duties to Publicis Media.
The company has created a bespoke staff, Publicis OneVibe, to service the account. It’s a variation of Publicis Media’s “Energy of One” mannequin, which faucets company expertise from throughout its media companies, Spark Foundry, Starcom and Zenith.
The worldwide advisory MediaSense kicked off the assessment in mid-2023. As we speak, Spotify notified each Publicis and the incumbent, IPG Mediabrands’ UM. Neither company might be reached for remark earlier than this story’s publication.
Publicis will take over the account—price virtually $245 million, by COMvergence’s estimates—this June. It’ll tackle international and regional model media administration, and help efficiency advertising initiatives. Spotify’s in-house staff will proceed dealing with its social efficiency spend, it confirmed.
“As Spotify’s enterprise and ambitions evolve, embracing change is vital to our artistic edge, as is doing all the pieces we will to attach with an ever-expanding international viewers of greater than 602 million customers in additional than 180 markets. We stay up for a brand new chapter of name media and efficiency advertising excellence with Publicis OneVibe,” mentioned Marc Hazan, vp of promoting and partnerships at Spotify, in an announcement offered to ADWEEK.
The choice follows Spotify’s 17% workers discount
In December, Spotify introduced it could minimize 17% of its workforce. Its CEO, Daniel Ek, revealed a workers memo on its press website, asserting the layoffs and a broader enterprise technique pivot. Within the memo, Eg defined that the layoffs would assist to “right-size” Spotify, so it may fare higher towards future enterprise challenges.
The cuts occurred regardless of Spotify’s constructive monetary outcomes, which remained robust all through 2023’s fourth quarter.
Spotify’s pandemic-era technique led to what Eg painted as a bloated workforce.
“In 2020 and 2021, we took benefit of the chance offered by lower-cost capital and invested considerably in staff enlargement, content material enhancement, advertising and new verticals,” he wrote within the memo.
Eg acknowledged that all through 2022 and 2023, Spotify’s workforce made the corporate extra productive. However that’s not sufficient to make sure future progress, Eg continued. On the coronary heart of Eg’s concern? Too many workers members supporting initiatives, and never sufficient new initiatives.
‘We have to change how we work’
The CEO attributes Spotify’s success to its early days, when its smaller workforce operated in a scrappier manner.
“The Spotify of tomorrow should be outlined by being relentlessly resourceful within the methods we function, innovate and sort out issues. This type of resourcefulness transcends the fundamental definition—it’s about getting ready for our subsequent section, the place being lean isn’t just an possibility however a necessity,” he wrote.