Latest / Social Media Marketing with Fexingo: Instagram, TikTok, LinkedIn, and Platform Strategy / Why Brands Are Using Social Media for Data Partnerships
Transcript
- Lucas: So last month, Spotify rolled out a new feature called 'Trending Playlists' — and what's interesting is where they're getting the data to build them. Luna: Let me guess — TikTok? Lucas: Bingo. Spotify has a data partnership with TikTok where they get access to trending sounds and viral audio clips. They use that to predict which songs will break out and surface them in dedicated playlists. Luna: That is smart. But also a little creepy if you think about it. Lucas: It is, and we'll get to the privacy angle. But first, this is a perfect case study for how brands are using social media data partnerships — sharing first-party data between platforms to improve products. Luna: And you know, if conversations like this spark an idea you actually use at work — maybe a new way to think about your own data strategy — that's the kind of value we hope you get from this show. Lucas: Exactly. And honestly, if today was worth a coffee to you, there's a link — buy me a coffee dot com slash fexingo. Keeps us ad-free and independent. Luna: Yeah, just a small way to say this kind of deep-dive is useful. Now back to Spotify and TikTok. Lucas: Right. So the deal reportedly gives Spotify access to TikTok's 'trending sounds' data — that's the audio clips users are adding to their videos most frequently. Luna: And Spotify uses that to update playlists like 'Viral Hits' or 'Today's Top Hits' more dynamically. Lucas: Exactly. Instead of relying solely on their own streaming data, they're getting a signal from the social layer. A song might be blowing up on TikTok before it has huge streams on Spotify. Luna: So they're using TikTok as an early warning system. Lucas: Yes. And this isn't just a music thing. We're seeing data partnerships across industries. Retailers sharing purchase data with Instagram to improve ad targeting. Travel brands sharing booking data with TikTok to serve destination ads. Luna: What's the incentive for TikTok? Why share their valuable data? Lucas: Good question. TikTok gets something in return — probably access to Spotify's listening data, or a revenue share from the playlists. Or maybe just a stronger ecosystem where users stay engaged because the music discovery loop is tighter. Luna: So it's a win-win, as long as users are okay with their data being shared. Lucas: Right, and that's the big question. Both platforms have to be transparent about what data is shared and how it's used. In this case, Spotify says they only receive aggregated, anonymized trends — not individual user data. Luna: But 'anonymized' can sometimes be re-identified. We've seen that with location data. Lucas: Absolutely. And regulators are watching. The FTC in the US and the European Commission have both signaled interest in data partnerships between large platforms. Luna: So what's the playbook for a brand that wants to do something similar? Lucas: First, be crystal clear on what data you're sharing and what you're getting. Second, have a legal framework that addresses privacy regulations like GDPR and CCPA. Third, make sure the partnership improves the user experience — not just your targeting. Luna: And users need to know about it. Transparency builds trust. Lucas: Exactly. Spotify and TikTok announced their partnership publicly with a press release and a blog post explaining the benefits. That's a good model. Luna: What about smaller brands? Can they get into data partnerships? Lucas: They can, but it's tougher. Platforms like TikTok or Meta typically want data from partners with large, engaged audiences. But smaller brands can join data co-ops — like the one from Salesforce's Marketing Cloud — where multiple brands pool first-party data for mutual benefit. Luna: So there's a scale requirement, but not necessarily massive scale. Lucas: Right. And the key is to have clean, well-structured first-party data. If your data is messy, partnerships won't yield much value. Luna: Let's talk measurement. How do you know if a data partnership is working? Lucas: You need clear KPIs upfront. For Spotify, it might be increased playlist engagement or higher retention. For a retailer, it could be lower cost per acquisition or higher return on ad spend. Luna: And you need a way to attribute results — which is tricky when data crosses platforms. Lucas: Very tricky. That's why many partnerships include a data clean room — a neutral environment where both sides can analyze data without revealing raw information to each other. Luna: That sounds like the safest approach, privacy-wise. Lucas: It is. And it's becoming standard. Amazon, Google, and Snowflake all offer clean room solutions now. Luna: So what's the future of these partnerships? Will we see more platform to platform data sharing? Lucas: I think so, especially as third-party cookies disappear. First-party data and partnerships are the new currency. But regulation will tighten. The UK's Information Commissioner's Office recently published guidance on data sharing for AI training — expect similar frameworks for marketing data. Luna: So brands need to stay agile and compliant. Lucas: Exactly. And the brands that do it well will have a competitive advantage. They'll understand their customers better and deliver more relevant experiences. Luna: Alright, let's wrap with a practical takeaway. If I'm a marketing director at a mid-size brand, what's my first step? Lucas: Audit your own first-party data. Make sure it's accurate, consented, and well-organized. Then identify a potential partner whose data complements yours — not just overlaps. Reach out with a clear value proposition. Luna: And don't forget the legal review. Lucas: Critical. Have your privacy officer or legal team involved from day one. The last thing you want is a partnership that generates great results but lands you in regulatory trouble. Luna: Good advice. And if any of this sparks an idea, you know where to find us. Lucas: Yeah. For now, thanks for listening. We'll be back next time with another angle on social media marketing.