Following on from its partnership with Shopify, which enabled merch purchases to be integrated into artist profiles, increasing merch sales by 22%, Spotify is now taking the sales funnel a step further by launching a “Merch Hub”.
This new feature is based on each user’s listening habits, so that when they click on “Merch” in the Spotify search tab, the platform can suggest a selection of merch that might interest them.
This all-new “Merch Hub” is a reminder of just how powerful Spotify’s algorithm can be: while it already plays a major role in music discovery by offering users brand-new tracks with its algorithmic playlists, it now also has an even more important role in product purchasing. Here, the algorithm will be able to target audiences as “super fans” of artists to encourage them to buy merchandise.
This is good news for artists, who could see their merch sales get boosted thanks to this new feature. However, its effectiveness remains to be seen: the “Merch” insert in the platform’s search tab is located at the very bottom of the categories, which can make it difficult to access in the user experience. We look forward to seeing the first results of this “Merch Hub” in the coming months. To be continued…
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