Isabell, Julieta (2024) The Correlation between Perceived In-App Advertising and Brand Association of the Spotify Music Streaming Application with Consumer Purchasing Decision of Premium Services. Undergraduate thesis, Fakultas Ilmu Sosial dan Ilmu Politik Universitas Diponegoro.

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Abstract

As digitalization continues to advance, in-app advertising plays a pivotal
role in enhancing marketing strategies. Spotify, a music streaming application,
implements in-app advertising strategy to encourage free users to subscribe to its
premium services. The message conveyed in these in-app advertisements
emphasize the relevant benefits and features of the service. This is expected to
foster positive perceptions of the brand and its premium services. Through the
development of positive perceptions, associations with the premium service can
be established, potentially effecting consumer purchasing decisions for the
premium subscription. However, annual data reveals a declining percentage of
premium subscriber growth Year over Year (YoY) over the past 3 years. Therefore,
the study entitled ‘’The Correlation between Perceived In-App Advertising and
Brand Association of the Spotify Music Streaming Application with Consumer
Purchasing Decision of Premium Services’’ was examined.
This research is a quantitative study using an explanatory method.
Through semi-interviews with 100 participants, characterized as Indonesian
individuals (male and female) aged 18-24 years who are Spotify users. The
findings of Pearson multivariate correlation result reveal a positive correlation
between perceived in-app advertising and brand association of the Spotify music
streaming application with consumer purchasing decision of premium services.
This is supported by significance values less (<) than 0.01, with a positive
correlation strength that is cathagorized as moderate (0.459). These findings align
with the advertising Exposure Theory by Batra R., Myers J., and Aaker D. The
results suggest that Spotify can enhance ad optimization and brand building
strategies to improve consumer perceptions and brand associations, thereby
increasing the probability of users subscribing to premium services.
Keywords: Perceived In-App Advertising, Brand Association, Spotify
Premium, Purchasing Decision

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