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Spotify’s media review has concluded today with the account awarding global media duties to Publicis Media.
The agency has created a bespoke team, Publicis OneVibe, to service the account. It’s a variation of Publicis Media’s “Power of One” model, which taps agency talent from across its media brands.
The global advisory MediaSense kicked off the review in mid-2023. Today, Spotify notified both Publicis and the incumbent, IPG Mediabrands’ UM. Neither agency could be reached for comment before this story’s publication.
Publicis will take over the account—worth almost $245 million, by COMvergence’s estimates—this June. It’ll take on global and regional brand media management, and support performance marketing initiatives. Spotify’s in-house team will continue handling its social performance spend, it confirmed.
“As Spotify’s business and ambitions evolve, embracing change is key to our creative edge, as is doing everything we can to connect with an ever-expanding global audience of more than 602 million users in more than 180 markets. We look forward to a new chapter of brand media and performance marketing excellence with Publicis OneVibe,” said Marc Hazan, vice president of marketing and partnerships at Spotify, in a statement provided to ADWEEK.
The decision follows Spotify’s 17% staff reduction
In December, Spotify announced it would cut 17% of its workforce. Its CEO, Daniel Ek, published a staff memo on its press site, announcing the layoffs and a broader business strategy pivot. In the memo, Ek explained that the layoffs would help to “right-size” Spotify, so it could fare better against future business challenges.
The cuts happened despite Spotify’s positive financial results, which remained strong throughout 2023’s fourth quarter.
Spotify’s pandemic-era strategy led to what Ek painted as a bloated workforce.
“In 2020 and 2021, we took advantage of the opportunity presented by lower-cost capital and invested significantly in team expansion, content enhancement, marketing and new verticals,” he wrote in the memo.
Ek acknowledged that throughout 2022 and 2023, Spotify’s workforce made the company more productive. But that’s not enough to ensure future growth, Ek continued. At the heart of Ek’s concern? Too many staff members supporting projects, and not enough new projects.
‘We need to change how we work’
The CEO attributes Spotify’s success to its early days, when its smaller workforce operated in a scrappier way.
“The Spotify of tomorrow must be defined by being relentlessly resourceful in the ways we operate, innovate and tackle problems. This kind of resourcefulness transcends the basic definition—it’s about preparing for our next phase, where being lean is not just an option but a necessity,” he wrote.
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