The evolution of streaming and the future of digital advertising (insights from Spotify)

The entertainment and technology market has undergone a profound metamorphosis in the last two decades. From the era of physical video rental stores to the absolute dominance of streaming, consumer behavior and brand strategies have had to adapt to a world where access has triumphed over ownership.

In a recent episode of the TrendOff , Vicente Carrari , Director of Ad Sales at Spotify (with notable experience at Google and education startups), shared an analytical perspective on how technology has shaped the music industry and what the next steps are for audio advertising.

In this article, we explore the main points of this conversation, from the "algorithmization" of taste to the power of nostalgia as a marketing tool.

The death of the CD and the birth of the official distribution center

The transition from physical to digital media was not merely a change of medium, but a solution to a crisis of legality in the recording industry. As Carrari points out, the CD format lost its purpose when unauthorized downloading became the norm.

Spotify emerged as a true "official distribution center," guaranteeing copyright and offering two monetization avenues:

1. Premium Model: subscription-based payment for uninterrupted use.
2. Freemium model: free access sponsored by advertisers.

This "conjunction of factors"—the reluctance to buy CDs, the need for fast platforms, and the introduction of layers of intelligence and recommendation—is what consolidated streaming.

The end of tribes: the non-tribalization of taste in Generation Z

One of the most fascinating points of the discussion is the change in how generations identify with music. In the past, musical taste was a factor of social exclusion: you were either into rock, pop, or samba.

Today, we live in the era of non-tribalization . The same user who listens to Kiss might have Pedro Sampaio and Beethoven on their playlist. For marketing professionals, this represents an immense challenge:

• There is no longer a single "ideal spokesperson".
• Brands need multiple ambassadors to encompass the multifaceted perspectives of the modern consumer.
• Consumption is guided by rhythms and functional moments (music for running, cooking, or concentrating), and not necessarily by complete albums or specific bands.

Nostalgia marketing: why did vinyl make a comeback?

In a technological paradox, while streaming offers unlimited access at low costs, the vinyl market is experiencing a renaissance, with records being sold at high prices.

Carrari attributes this to a strong nostalgic bias and the need for a "mechanical charm" that digital doesn't offer. Nostalgia has become a global trend, visible from Super Bowl commercials to series like Stranger Things .

Vinyl represents the "craftsmanship" of music: the manual act of flipping the record, the macro art of the liner notes, and the uninterrupted listening experience free from cell phone notifications.

The psychology of audio and the attention economy

Unlike social media platforms that operate under the logic of FOMO ( Fear of Missing Out ) and endless scrolling, digital audio, especially on Spotify, is seen as a refuge.

"When I turn on Spotify, I don't look at the screen. I immerse myself in my own world."

This synesthetic characteristic of audio allows brands to impact the user in moments where screens are barriers: while running, driving, or performing household chores. Furthermore, neuroscience explains that audio has priority in brain processing due to evolutionary reasons; we hear dangers before we see them.

The future of podcasts and audiobooks

Spotify, which was slow to enter the world of podcasts, now sees the format as a powerful tool for a plurality of voices. The future points to:

• Video podcasts: the natural evolution towards hybrid formats.
• Audiobooks: a strategy already established in international markets and expanding.
• Extreme personalization: the use of cues such as BPM (beats per minute) to tailor content to the listener's emotional state or activity level.

Advertising 3.0: entertainment and data

The future of advertising on streaming platforms is moving away from boring commercial breaks and into the realm of entertainment. Examples such as campaigns using entire songs as ads or brands remaking classics show that connection through friendship and reciprocity is more effective than simple commercial persuasion.

Technology will soon allow for much more precise calculation of ROI (Return on Investment), identifying exactly the likelihood of a user making a purchase after listening to an audio advertisement.

Listen to the full episode!

The conversation between Vicente Carrari and the TrendOff hosts delves even deeper into topics such as startup culture, the challenges of education in Brazil with the Isaac project, and futuristic trends for TV. Want to check out the full conversation?

🎧 Click here to listen to this episode of TrendOff on Spotify

Written by Skyone