Spotify Introduces AI-Generated Ads: A Double-Edged Sword for User Experience and Revenue

The next ad you hear on Spotify might be AI-generated

Google Discover is experimenting with a redesigned feed that looks awful Summary Spotify is focusing on maximizing ad revenue and engaging users with new AI tools for advertisers. Spotify's new AI tool generates ad scripts and voiceovers for segments between songs, in the US and Canada. Users' general frustration with ads and lack of promised lossless streaming could potentially drive users away from Spotify. Spotify has been a two-tier music streaming app for years, offering most of its core features for free so long as you put up with advertisements. Premium subscribers get an ad-free experience with other conveniences like custom playback sequences, unlimited repeats, and more. While we wait for a new tier for lossless quality streaming, Spotify is equipping its advertisers with an AI tool in a bid to keep its ad revenue climbing. Related 5 tweaks to improve the Spotify experience on Android Use Spotify to the fullest with these simple features Posts 1 Presently, subscriptions contribute more to Spotify's earnings than the advertisers, but a recent New York Times report states the business is intent on maximizing the potential of the latter. On Wednesday, Spotify shared elaborate plans to help advertisers with new initiatives, like making ad purchases easier. This seems to be motivated by the distinction that Spotify commands more user involvement and attention than, say, YouTube where Reels and video podcasting has been performing well. The key new addition, though, will be a new AI tool for brands in the US and Canada that automatically generates scripts and voiceovers for ad segments injected between songs on the app. The company's co-president and chief business officer Alex Nordstrom told the New York Times this push for advertising makes sense because an engaged audience will likely engage more with ads on the platform as well. Spotify reckons its engagement is strong because users are arguably more involved in joining shared listening sessions with friends or catching up on a long podcast or audiobook spanning several hours. This involvement beats typical entertainment from Reels and Shorts, which Nordstrom says will soon "self-swipe" as well, further reducing user interaction with the app. AI-powered ads and other issues might also drive users away Compounding problems However, typically we have seen users grow increasingly frustrated as ads on any platform swell. On the video streaming side, we've seen the likes of YouTube crack down on account sharing and other tricks to get cheap Premium subscriptions as it pushed for more invasive ad strategies. I worry the same could happen on Spotify if it continues going down this road. Moreover, frustration among users has been on the rise since we have waited for a lossless-quality streaming service for more than a couple of years now, only to be teased on with leaks. Spotify also has other problems to tackle, such as pornographic adverts and podcasts or shows with sexual content that flout the platform's terms, but still go unchecked. With AI to speed up the process for ad creation, evidently minimal filtering in place, and little hope for users to hang on to, Spotify's appeal may dull soon.

Spotify might put AI ads in its free tier because it wants to annoy you into upgrading

I can't lie -- I've completely lost interest in Spotify and the long, long wait for Spotify HiFi. I'm not sure it's actually going to happen at this point, given we've been waiting for what feels like hundreds of years. But there's still part of me that hopes it's Spotify HiFi on the way when Spotify makes headlines again, only to be shot down when it's something completely different. And this time, it's no different. Apparently, if you're a free user of Spotify, you might end up listening to an ad that's been entirely AI generated. According to The New York Times, we might see a whole new type of ad on the green circle. Spotify is going to had out an "A.I. tool for brands in the United States and Canada to generate scripts and voice-overs" for adverts. The idea is to make it easier for firms to get adverts on the platform, with less investment needed to get products in front (or in the ears) of listeners. It's interesting that Spotify isn't first fixing pre-existing problems with its ads system, or adding any real value for anyone beyond companies that want to flog their latest thing at you. There are still issues with sexually explicit adverts and podcasts on the platform (via Bloomberg), and ongoing irritation at having to pay more and more for a platform that doesn't offer the same feature set as rivals. There's no Spatial Audio component and no hi-res streaming -- all things you'll find on more of the best streaming services like Apple Music, Tidal, or Qobuz. There's not much music-wise to keep people subscribing to Spotify anymore. Perhaps instead of looking at adding A.I. adverts to bombard free subscribers with, Spotify should be looking at increasing value for the end user -- because if all your users jump ship, you won't have anyone to play your adverts too. But what do I know? 2024 saw record profits for Spotify, which is looking into more ways to generate more capital. It couldn't even get Wrapped 2024 right last year, so I'm not holding out hope we're going to get the next Volkswagen 'think small' ad out of Spotify's A.I. advert generator.

Spotify is about to be flooded with AI-made ads, and I wonder if it will make much of a difference to businesses

Like most people, I tune out when an ad comes on while I'm listening to a podcast or streaming service if I can't just skip it. An ad needs something special to draw my attention to the actual product or service being pitched to me. Spotify thinks AI can help businesses overcome ad apathy. The company just launched a feature called Gen AI Ads for businesses using its Ads Manager platform. Gen AI Ads enables businesses to create audio ads with AI help from top to bottom. They can ask for AI help writing and editing a script and even get AI voices to perform the ad. The AI tools are built into the platform for no extra cost, meaning producing new ads should be faster, more affordable, and easier for any business. You can see how it works below. Spotify's offer makes sense since advertising is key to its revenue. At the same time, not every business has the wherewithal to produce a good one or the resources to hire people or a firm to make it. For a smaller business, especially, advertising can cost resources in short supply. Spotify pitches Gen AI Ads as a way to rapidly publish polished ads without needing to book a sound studio or hire Morgan Freeman (or a more affordable impressionist). I can see it as a huge deal for scrappy entrepreneurs trying to reach new audiences. But just because you can make an ad doesn't mean it will be good. Even a competent or outright brilliant ad doesn't guarantee sales. Because, let's be honest, most ads are already annoying. Now imagine a world where half of them are spit out by a bot trained on corporate LinkedIn posts and "How to Sound Friendly" YouTube tutorials. The risk is that instead of democratizing creativity, we'll end up with a sea of samey-sounding voiceovers that make everything from indie bookstores to boutique sock brands feel like they're all pitching for the same corporate team-building seminar. Spotify can claim that AI ads are produced creatively, but creativity isn't preloaded in an AI model. I'd bet the best AI-made ads are from businesses that would have made just as good a commercial without AI tools had they the same resources as a bigger company. I suspect most AI ads will be just audio wallpaper. The example from Spotify doesn't make me feel like my current coffee routine needs improvement. It's just audio wallpaper. Paradoxically, if every ad sounds clean and competent because of AI, the only way to stand out may be to bring in a human voice people recognize. Cue the sudden boom in demand for celebrity voiceovers (but not Ryan Reynolds and his endless Cricket and Mint Mobile ads). When every ad has the same polished AI-generated tone, a familiar voice will cut through the noise like your favorite song's opening chords. That may drive up the cost of those voiceovers and set a new tier for advertising costs. AI replicas of celebrity voices won't level the playing field if the 'live' ads can boast of their non-AI origins. So we could end up in this bizarre situation where AI ads make it cheaper to enter the advertising game but more expensive to win it. Ultimately, nobody likes ads, even if we tolerate them. We might laugh at a good one, but most of the time, we count down the seconds until the music or podcast returns. If Gen AI Ads flood Spotify with a wave of pleasant but dull pitches, there's a chance listeners will start noticing how synthetic everything feels and be annoyed. Ironically, that could work out very well for Spotify. Because what's the fastest way to get rid of ads on Spotify? Pay for Premium. In a roundabout way, all these new AI-generated ads could drive more people to fork over the cash for a subscription. I would be both appalled and impressed if Spotify's play is to "use AI to draw in advertisers with cheaper and more efficient production, but ensure they are just irritating enough to upsell subscriptions." I don't think AI ads are a bad idea. They're just not a magic bullet for businesses. Lower-cost barriers are a big deal, and they sound decent enough. Whether they actually help people sell more dog treats, cologne, or artisanal sourdough starter kits depends entirely on whether the person listening is open to the product. AI can help polish a diamond, but it can't make one out of a chunk of concrete.

Spotify could bring AI-generated ads to its free version, but why? - Softonic

Spotify is testing AI-generated ads for free users, prioritizing advertiser convenience over audio quality improvements and user experience. Spotify is once again in the spotlight, but not for the long-awaited HiFi tier. Instead, the platform is reportedly testing AI-generated ads for free users, raising questions about priorities and user value. While other music streaming platforms improve their audio quality, Spotify seems to be heading in a very different direction. According to The New York Times, Spotify is offering brands in the US and Canada a tool to generate scripts and voiceovers using artificial intelligence. The goal is to simplify the ad creation process and increase the volume of promotional content on the platform. This move would allow companies to publish ads more quickly and cheaply, targeting users who don't pay for Spotify Premium. While innovation in advertising may benefit brands, it does little to improve the listening experience. Spotify still lacks features like Spatial Audio and high-resolution streaming, both of which are already present in services like Apple Music, Tidal, or Qobuz. The focus on AI-generated ads highlights a growing imbalance between Spotify's business goals and user needs. Users continue to see price increases without getting added value, especially when the platform still suffers from issues like sexually explicit ads and poor content moderation. Rather than investing in user-focused improvements, Spotify appears more interested in boosting revenue by increasing ad inventory. That might work in the short term, but it risks alienating listeners already considering alternatives. In the end, if the free-tier experience becomes too frustrating, the plan may backfire.