Get Gen Z and Millennial Prospects Engaged With Spotify (PART 1)

Could targeted Spotify ads help your insurance company to break through the noise?

With over 240 million listeners enjoying an average of 25 hours of ad-supported content every month, Spotify is the world’s leading music and podcast streaming platform. And while online and mobile streaming continues to grow in popularity across all age groups, most of Spotify’s users are under 35, making it the perfect medium for reaching Gen Z and millennial prospects as they go about their daily routines.

What’s more, Spotify makes it easy for advertisers to fine-tune their audience with advanced targeting tools that go beyond the usual demographic and geographic parameters. With flexible creative options, a minimum spend of just $250, and access to real-time analytics, it’s easy for insurance companies to get started with their first Spotify campaign – and Lightstream is ready to help.

Sound intriguing? Read on for more info about the importance of engaging Gen Z and millennial consumers and how Spotify can drive that goal.

📣 FAST FACT: Audio ads drive 24% higher recall on average when compared to display ads.



While they may not have hit peak profitability yet, reaching and retaining younger account holders is vital for future growth. Here’s why:

  1. They Dominate the Population: True to their name, the Baby Boomer generation (born 1946–1964) was the biggest in the U.S. until 2019. Since then, they’ve been gradually overtaken by millennials (born 1981–1996) – and when you add in Gen Z (born 1997–2012), these younger generations make up the majority of the population. For insurance brands looking to forge enduring relationships, demographics are destiny.
  2. Many Are in Their Prime ‘Adulting’ Years: The term millennial might still conjure up images of disaffected youth, but many are now nearing or over 40, well-established in their professions, raising families, and in the market for insurance products such as auto, renters or homeowners, and life insurance. A significant portion of Gen Z is entering the workforce and holds immense potential for driving the growth of insurance companies.
  3. They Desire Security: For many in these generations, the Great Recession was a formative childhood memory or a major roadblock on their early career path. Whether their parents were among the millions who lost their jobs or homes, or they experienced serious setbacks themselves, Gen Z and millennial consumers crave the kind of stability that an insurance company can help them achieve.
  4. They Desperately Need Guidance: A study found that 80% of Millennials and Gen Z wanted to talk to an insurance agent to get a better understanding of their insurance plans. What’s more, only one-third of Millennials surveyed felt that they were “insurance savvy.” Insurance companies have a valuable opportunity to build brand awareness and trust as a guiding voice on these topics by reaching Gen Z and Millennials on their preferred channels.
  5. They Value the Service at Which You Excel: For all their talk of tech, younger consumers desire genuine human connections for more complex topics/purchases. When it comes to insurance needs, they’re more likely than their Gen X and “Boomer” counterparts to demand personalized attention, continuity, and convenience. As a member of an industry focused on customer service, that is already one of your strengths.

📣 FAST FACT: 47% of Gen Z and Millennial insurance policyholders are open to sharing data from their smart home devices with their insurance provider to receive customized products and services.



Here’s how you can use this popular audio platform to engage with your ideal audiences:

  1. Go Mobile-First: What better way to promote your company’s digital services than on a digital channel? Position your Spotify ads to focus on your tools that make common tasks easier, like making payments, receiving quotes, reviewing policy limits and coverages, and filing claims. In combination with broader messaging, this can boost brand awareness as well as your credibility as an insurance company that keeps up with people’s busy lives.
  2. Focus on Device Type: As we’ve noted, Spotify’s overall customer base trends young. But you can further home in on Gen Z and millennial audiences – while avoiding any potential age-related targeting restrictions – by sending ads only to mobile devices. Boomers may be the fastest-growing segment of smartphone owners, but they’re still at 61%, while Gen Z and millennials make up the bulk of the market, holding steady at around 95%.
  3. Target by Topic: Most people equate Spotify with music, but it’s also increasingly the go-to platform for podcasts – especially for members of Gen Z, who prefer Spotify to Apple® Podcasts by a wide margin. This presents an opportunity for highly granular targeting, like serving up more sophisticated messaging to fans of business, investment, and insurance podcasts. It’s also a good way to educate younger consumers about the importance of life insurance and other types of protection.
  4. Seize the (Micro) Moment: Audio is integral in many everyday activities like driving, studying, cooking, cleaning, and exercising. Many users have specific playlists for these tasks, and you can target them by keyword to deliver perfectly timed pitches. Plus, you can take advantage of Spotify’s contextual targeting capabilities to deploy multiformat campaigns that display complementary video and still-image content when users are actively scrolling.
  5. Tap Into Psychographics: Custom playlists can also reflect transitory moods and mindsets. Someone listening to a playlist named “Calming” might appreciate a lowkey message of reassurance, while “Summer Dance Mix” might call for something more irreverent and celebratory. Creative options like these are great for A/B testing – you can try out two very different approaches and see which one drives more conversions.

Stay tuned for Part 2, where we’ll cover the different types of Spotify ads and tips for crafting ads that inform, entertain, and convert.

📣 FAST FACT: Lightstream currently serves dozens of insurance companies from coast to coast.

Since the earliest days of streaming, search engine marketing, and social media, we’ve been helping insurance companies use powerful tools to their fullest potential. What are you hoping to achieve with your next marketing initiative? Reach out to our digital strategists today, tell us your story, and find out how we can support your goals.