Spotify's two ad systems (what each is for)
People say "run ads on Spotify" like it is one thing. It is not.
Campaign Kit (Spotify for Artists -> Campaigns) means Marquee, Showcase, and Discovery Mode. These are built around Spotify's in-app behavior.
Spotify Ads Manager is the self-serve ad platform for audio and display-style ads with objectives like awareness and traffic. It can promote music, but it is not Campaign Kit. (Spotify Advertising: Pricing.)
Sources: Spotify Campaign Kit docs (Spotify: Getting started with Marquee and Showcase and Using Discovery Mode.)
The practical split: Campaign Kit is for "opens to streams" inside Spotify. Ads Manager is for reach and clicks to destinations you control (smart link, tickets, mailing list).
Eligibility and cost, in one table
Use this to decide what is even possible before you build a plan.
| Product | Where you run it | Eligibility (official) | Cost model (official) | Best use case |
|---|---|---|---|---|
Showcase |
Spotify for Artists (Campaigns) |
1,000 streams in last 28 days in at least one target market | Budget $100 to $10,000 (USD or local equivalent), CPC | Catalog push, tour moment, "second wave" after release |
Marquee |
Spotify for Artists (Campaigns) |
Showcase access + 5,000 monthly active listeners in target market | Budget $100 to $10,000 (USD or local equivalent), CPC | New-release launch when you have real market density |
Discovery Mode |
Spotify for Artists (Campaigns) |
Artist-team + song requirements (includes 25,000 monthly listeners) | 30% commission on recording royalties in Discovery Mode contexts | Algorithmic scale trade-off when the track already converts |
Ads Manager |
Spotify Ads Manager | Platform access and budget rules (no stream threshold listed) | Auction pricing with daily or lifetime budgets | Awareness and traffic (tickets, pre-saves, email capture) |
Sources: Spotify Marquee/Showcase eligibility and format rules (Spotify: Getting started with Marquee and Showcase), budgets (Spotify: Forecasting and budget), Discovery Mode eligibility and commission (Spotify: Using Discovery Mode), Ads Manager pricing model (Spotify Advertising: Pricing).
One nuance that changes outcomes: Campaign Kit eligibility is market-based. You can be eligible in one country and not eligible in another.
Tip Pick one target country first. Campaign Kit eligibility is market-based.
Campaign Kit: Marquee, Showcase, Discovery Mode
Marquee: high-attention launch unit (new releases)
Marquee is a full-screen sponsored recommendation in the Spotify mobile app. It is meant for new releases and has a limited launch window. (Spotify: Getting started with Marquee and Showcase.)
Two rules gate planning. Access starts at 1,000 streams in the last 28 days in at least one target market. Marquee also requires 5,000 monthly active listeners in the target market you select.
If you want the full step-by-step setup workflow, use the dedicated guide: Spotify Marquee campaign setup.
Showcase: flexible Home placement (new or catalog)
Showcase runs as a banner on Spotify's Home, and Spotify positions it as usable for new and catalog releases. (Spotify: Getting started with Marquee and Showcase.)
The key planning point: Showcase shares the 1,000 streams in 28 days access rule, but it does not add Marquee's 5,000 monthly active listener threshold. That is why it is often the first Campaign Kit product that mid-sized indie teams can use in a specific market.
For practical plays and creative choices, see: Spotify Showcase catalog revival guide.
Discovery Mode: algorithmic distribution with a royalty trade-off
Discovery Mode is not a banner ad. It is a signal you apply to selected songs that can increase the likelihood of recommendation in specific algorithmic contexts. (Spotify: Discovery Mode.)
Spotify's help center frames it as "no upfront budget," but the cost is real:
- A 30% commission is applied to recording royalties generated from streams of selected songs in Discovery Mode contexts. (Spotify: Using Discovery Mode.)
- Other streams remain commission-free.
Discovery Mode eligibility is also stricter than Marquee/Showcase. Spotify's official criteria include:
At least 3 eligible songs, at least 25,000 monthly listeners, and song-level requirements including being released for at least 30 days and having 20+ streams in Discovery Mode contexts in the last 28 days (plus monetization eligibility rules). (Spotify: Using Discovery Mode.)
Warning Treat Discovery Mode enrollment like a margin cut, not a free promo lever.
How to think about the 30% trade-off (the simplest math)
Treat the commission like a built-in "marketing spend" that is paid out of future royalties.
If you only look at the commission-bearing streams themselves, a 30% cut means you need about 43% more of those streams to break even on recording-royalty revenue:
If you earn $1.00 from a set of Discovery Mode-context streams without the commission, the 30% commission nets $0.70. To get back to $1.00 at $0.70 per unit, you need $1.00 / $0.70 = 1.43x, or about 43% more.
That break-even framing is basic math on Spotify's fee structure, not a Spotify performance promise. (Spotify: Using Discovery Mode.)
Discovery Mode can still make sense if the value lands outside the commission bucket: saves, playlist adds, repeat listening, and catalog exploration that is not charged the commission. Spotify makes that downstream argument explicitly, while also noting there is no guarantee of recommendation. (Spotify: Discovery Mode.)
Spotify Ads Manager: when you want awareness and traffic
Spotify Ads Manager is best treated like an ad platform (closer to Meta or YouTube in feel) rather than a "buy streams" tool.
Pricing is auction-based with budgets you control, not a fixed rate card. (Spotify Advertising: Pricing.) A common constraint is minimums: Spotify's Ads help center notes that the minimum lifetime budget is roughly the equivalent of $250 USD in your local currency (daily minimums can be lower, depending on market). (Spotify Advertising Help: Ad creation overview - setting your budget.)
Spotify Ads Manager is usually the right tool when:
- You are not eligible for Campaign Kit yet (no
Campaignsaccess, or you cannot target a market where you qualify). - Your KPI is off-platform: pre-saves, ticket clicks, merch, email list growth, or awareness in a city before a show.
- You need targeting controls that Campaign Kit does not offer.
In practice, a simple Ads Manager setup looks like this (Spotify provides the platform-specific workflow in its Ads help docs). (Spotify Advertising Help: Ad creation overview.)
1) Choose one objective and one destination One campaign, one link, one job. Keep the first test simple.
2) Build one audience you can explain Pick one geo and one broad direction. If you cannot describe it in one sentence, it is too complex to learn from.
3) Launch a small test and judge it by downstream behavior A click is not a fan. Watch what happens after the click: saves, follows, email sign-ups, ticket conversions, and return listening.
Decision tree: which Spotify product to use when
Start with one check: do you have Campaigns in Spotify for Artists for the market you want?
If no, use Spotify Ads Manager for awareness and traffic, and keep building real listener activity until Campaign Kit unlocks. If yes, decide based on release timing and the market where you qualify.
Sources: Spotify Campaign Kit access rules (Spotify: Getting started with Marquee and Showcase); Discovery Mode eligibility and commission (Spotify: Using Discovery Mode.)
If the release is new (launch window)
- If you meet 5,000 monthly active listeners in the target market, test
Marqueefirst. - If you do not meet the Marquee market minimum, use
Showcaseinstead.
If the release is catalog (or you need flexible timing)
Use Showcase. Spotify positions it as "anytime" and supports catalog promotion. (Spotify: Getting started with Marquee and Showcase.)
If the goal is algorithmic scale for a proven track
Consider Discovery Mode only if you meet the official eligibility criteria and you are comfortable paying the commission. (Spotify: Using Discovery Mode.)
Before you pick a product, make three decisions you can defend: the one country you are targeting, whether this is a launch or a catalog push, and whether you are willing to trade recording royalties for more algorithmic distribution.
FAQ
How do I run ads on Spotify as an artist?
First check Spotify for Artists on desktop for the Campaigns tab. If you have access, Campaign Kit lets you run Showcase and Marquee (and sometimes Discovery Mode) based on eligibility. (Spotify: Getting started with Marquee and Showcase and Using Discovery Mode.)
If you do not have Campaign Kit access, use Spotify Ads Manager for awareness or traffic campaigns. (Spotify Advertising: Pricing.)
How much do Spotify Marquee campaigns cost?
Spotify's published budget range for Marquee and Showcase campaigns is $100 to $10,000 USD (or the equivalent in local currency), billed on a cost-per-click basis. (Spotify: Forecasting and budget.)
What is Spotify Showcase?
Showcase is a sponsored recommendation banner on Spotify Home that Spotify positions as usable for new releases and catalog. (Spotify: Getting started with Marquee and Showcase.)
What's the difference between Marquee and Showcase?
Marquee is a full-screen format meant for new releases within a limited launch window, while Showcase is a Home placement Spotify positions as usable anytime, including catalog. (Spotify: Getting started with Marquee and Showcase.)
For a deeper comparison, see: Spotify Marquee vs Showcase.
Do I need a minimum number of streams for Spotify ads?
For Campaign Kit (Marquee and Showcase), yes: Spotify's official rule for access is 1,000 streams in the last 28 days in at least one target market, and Marquee adds the 5,000 monthly active listeners requirement in the selected target market. (Spotify: Getting started with Marquee and Showcase.)
For Discovery Mode, Spotify's official eligibility includes 25,000 monthly listeners and additional song-level rules. (Spotify: Using Discovery Mode.)
For Ads Manager, Spotify's docs focus on platform access and budget minimums, not stream thresholds. (Spotify Advertising Help: Setting your budget.)
Can independent artists use Spotify Campaign Kit?
Yes, if they meet Spotify's eligibility and availability rules for their team and target markets. Spotify documents both availability by billing country and the eligibility thresholds for Campaign Kit access. (Spotify: Getting started with Marquee and Showcase.)
Is Discovery Mode worth the royalty cut?
It can be, but only when you have a clear reason to trade recording royalties for more distribution.
The non-negotiable is understanding the cost: Spotify applies a 30% commission to recording royalties from streams of selected songs in Discovery Mode contexts, while other streams remain commission-free. (Spotify: Using Discovery Mode.)
The simplest test question: if the song gets a lot of its value from direct recording-royalty revenue today, do you really want to reduce margin on those specific streams? If the value is in growth and downstream catalog exploration, the trade-off can be reasonable.
One thing to do before you spend a dollar
Open Spotify for Artists and filter Audience by the exact country you want to target. If you cannot point to one market where you meet the Campaign Kit thresholds today, you are not choosing between Marquee and Ads Manager yet. You are choosing between building market concentration first, or wasting budget trying to force it.