What is Spotify?

“According to its most recent publicly-available measure, Spotify has 45 million active users that can receive ads, and another 30 million subscribers.” So reports Advertising Age today.

What is the purpose?

“With Spotify and Krux working together, we have access to first-party data allowing us to better target specific people and user groups such as those looking for auto insurance and commuters,” said Cyndie Beckwith, VP-marketing at Esurance. “For this initiative, we wanted to add on some similar targeting approaches that we’ve been leveraging across desktops to streaming audio, and in particular mobile streaming audio.”

Listening to playlists is an increasingly common experience on Spotify, and the company is investing in analyzing such listening data and enhancing it with third-party demographic information — some of which Krux provides, such as education status and household income. The company tracks when specific users listen to playlists, for example when someone starts a “running” playlist around the same time most mornings, it can be used to determine that that person is actually running during those times.

Spotify has grown to use such data as a proxy for determining user activities and moods, said Brian Benedik, global head of sales at Spotify. An adult activating a playlist of kids’ music is likely a parent, for example.

Data harvesting and real-time marketing are the purpose. Spotify is overclass spyware.