The Effectiveness of AI in Marketing "Spotify Wrapped": How it Affects Indonesian Customer's Engagement

Abstract

With the rise of Industry 4.0, everything has become more digitalized. Many companies have started implementing technologies in their digital marketing activities to enhance productivity. Spotify is one of the companies that used AI in their digital marketing campaign called “Spotify Wrapped” from 2016 until today. With the rise of the digital campaign, many consumers were interested in the campaign and the application. There are 3 topics that will be discussed related to how Spotify Wrapped does its marketing, the impact of the campaign on user engagement, and the way Spotify Wrapped could succeed. The data will be gathered in quantitative ways through a survey which will become the primary data. A literature study from a related journal has also been conducted to gain secondary data. The final outcome from this study has found that users participate actively and passively in this marketing strategy.  In order to understand the link between dependent and independent factors and the usage of AI in Spotify Wrapped and how it impacts users' engagement with the application, the analyzed data were also utilized to support the hypotheses that were developed. It also demonstrates that one of the factors influencing users' decisions to continue using the Spotify app is Spotify Wrapped. The research is constrained by the fact that it can only include 100 Indonesian respondents who have used or are presently using the Spotify app. This study looks at consumer behavior, particularly how consumers respond to personalized content and other digital marketing tools. This report also examines and offers advice on how a company might use artificial intelligence to grow its business.