F# Is Building an Entire Business Around Ad-Supported Music Streaming…

Can ads support anything, at least when it comes to streaming music?  Now, there’s a young company working behind the scenes to make ads more effective on platforms like Spotify.

F# (F Sharp) has been creating “music discovery” ads since February 2012, helping brands use social music and playlists in advertising campaigns.  Their interactive ads are geared for Spotify, Facebook, and the web.  On the sponsor side, the company has worked for Coke, McDonalds, MTV, and others.

The results seem promising: F# ad click rates are around 10 times higher than the average for display ads, and they have facilitated 3 billion engagements.  (That is, according to the company.)

For those who follow social and digital media, their playlist analyzer and unlock countdown are interesting additions to the advertising landscape.  Those who see Spotify as the fourth horseman will be less enthused.

Next week, F# will be announcing their new Adplayer product, which will help brands incorporate social music even further.

10 Responses

  1. Tune Hunter

    f# is a desperation implemented to desperate business model.
    Lets start sale music – it is simple and easy!
    No need for proven business models leaching the industry potential.

    • Nina Ulloa

      Not really sure how this keeps people from buying music, I’d say It exposes people to new music…

      • Tune Hunter

        Exposure to new with simultaneous monetization, YES, it is long overdue!
        FREE cruse on Spotify or Tube with all discovery services and similar tune suggest services also for FREE should be urgently criminalized.

    • Kevin King

      I’ve not bought a CD or downloaded a song in over two, however I’ve got 28k songs in Rdio and just crossed 600 songs liked on Pandora, I win!

      • Visitor

        What exactly do you win, Kevin? Do you think you are beating up on songwriters, artists and record companies …? Good on you, mate … let’s kick the crap out of those people. Right? Actually, you are using legal services to do what legal services are authorized to allow you to do … So, cue up those 28K songs and listen away … Everyone will get paid next to nothing every time you listen … and next to nothing is better than nothing.

        Thank you for your support.

      • Tune Hunter

        It is temporary wining, enjoy as much as you can – dope smoking at Universal is over!

        Current monetization methods cannibalize the music industry.
        Ad supported staff delivers around 5 to 10% of actual value.
        Premium subscription delivers around up to 25% of market value.
        Both prevent common sense sales of music.
        If we stay on current course the industry will not exceed 30 billions in next 10 years.

        If and when we wake up (top musicians have to help) and convert all discovery services to cash cows of the industry we will exceed 100 billions in 10 years .
        It can be done with 39 cent for purchase or addition of the tune to streamer’s playlist.

  2. Visitor

    OK I’m interested. Who pays the .39 … who collects the .39 … who distributes the .39 to whom and how?

    And do you really believe dope smoking at Universal is over?

    • TuneHunter

      Shazam, Soundhound and Gracenote for quick start – they keep 20 to 30%.
      Rest in the early stage goes to label or content owner.
      In second stage digital license plate attached to all publicly plaid tunes would have a tune ownership first and then pay-out formula. At this stage radio stations would automatically become the best music stores and the best friends of new music. Era of good DJs delivering the best discovery and cash to everyone.