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.

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.

1. Go to Spotify Ad Studio and sign up with your business email.
2. Verify your account and link your business.
3. 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).

Read more: How Much Do Spotify Ads Cost? Pricing for Local Businesses

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

How much should a small business spend on Spotify Ads?

Start with $10-$50 per day to test and optimize. Once you see results, you can scale up. For a local business, $100/month can yield decent reach and leads.

Is $10 a day enough for Spotify Ads?

Yes, $10/day is enough to test a few ad variations and get performance insights. It's a great starting point for small businesses with tight budgets.

Is $100 enough for Spotify Ads?

$100/month is a reasonable budget for a small local business, especially if you're running a short-term campaign or seasonal promotion.

What are the best times to run Spotify Ads?

The best times depend on your audience. Try 7am-9am for commuters or 5pm-8pm for evening listeners. Use Spotify's scheduling tools to test different times.

Can I run Spotify Ads if I'm not a big brand?

Absolutely. Spotify Ads are designed for small and medium-sized businesses. You can run effective campaigns with modest budgets and local targeting.

Can Spotify Ads drive in-store visits?

Yes - if your ad includes a clear CTA like "Stop by [Shop Name] today" or "Book online at [URL]", and you test the right time/day, you can drive local foot traffic.

How do I track results from Spotify Ads?

Use UTM links in your ad to track:

• Website visits
• Form submissions
• Booking conversions

Should I use audio or video ads?

It depends on your message. Audio ads are best for storytelling or when listeners are on the move. Video ads are better for visual branding or showcasing your service.

Final Thoughts

Spotify Ads are a powerful tool for local businesses looking to grow with audio-based marketing. With the right strategy, you can reach music lovers in the moment - and drive real results for your business.

If you're not sure where to start, or want help setting up a Spotify campaign that converts, DataLatte is here to help. We specialize in data-driven audio and local marketing for small businesses like yours.

👉 Talk to us today to get started with Spotify Ads and other local marketing strategies that work.

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Thanks for reading - now go make your next ad so catchy, people will remember it long after the song ends. 🎶