Spotify + Facebook Ads - is this some $$ method?

Alae63

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Hey guys, Its been a very long time that I see ads a LOT of them like this

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Where people advertise for playlist, but I'm very curious here why do they do that? since the songs in the playlist are from multiple random/known artist, how do they generate earnings from this? because there is no way people would spend money on ads if there is no returns :D someone explain please
 
Once they have an audience. They talk to artists to include their songs there and charge them.
 
Once they have an audience. They talk to artists to include their songs there and charge them.
So basically the only way they can make money from this is to build a huge fan base and get paid from artist to add their songs?
 
Hey guys, Its been a very long time that I see ads a LOT of them like this

View attachment 257859

Where people advertise for playlist, but I'm very curious here why do they do that? since the songs in the playlist are from multiple random/known artist, how do they generate earnings from this? because there is no way people would spend money on ads if there is no returns :D someone explain please
Enhanced Music is also a label, so the artist on the playlists could be signed to enhanced music and enhanced music would be making money on them all. Mostly like a 50/50 deal.

This type of ads mostly makes sense if you are a label or try to sell playlist spots to artists.
 
Haa now it make sense, well always good to know new stuff thank you guys
 
It is different music labels advertising on FB. They have deal with the artists and get their part from the revenue generated by streaming. They attract more listeners to their artist's music by advertising and it increases the revenue.
 
Enhanced Music is also a label, so the artist on the playlists could be signed to enhanced music and enhanced music would be making money on them all. Mostly like a 50/50 deal.

This type of ads mostly makes sense if you are a label or try to sell playlist spots to artists.
Is building a fan base though cost effective for the ads?
 
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