Spotify Revolutionizes Advertising with AI-Powered Tools and Global Ad Exchange

Spotify debuts Gen AI ads, programmatic ad buying | TechCrunch

Spotify announced Gen AI ads, among other changes to its advertising business, at an event in New York City on Thursday. Notably, the company introduced a new programmatic offering, the Spotify Ad Exchange (SAX), which allows advertisers to reach Spotify's logged-in users via real-time auctions. On the latter, Spotify announced new partnerships with Google's demand-side platform, Dispay & Video, Magnite, with Yahoo DSP, Adform, and others "soon" to come. The Trade Desk is also supported. SAX will offer full addressability and measurement capabilities, the company notes. The partners will initially be able to advertise within Spotify's audio, video, and display formats across music, with podcast support on the way. SAX will be available in the U.S., Canada, Europe, Australia, New Zealand, India, Singapore, Brazil, and Mexico. In another major announcement, the company said it's integrating AI into its advertising offerings by allowing marketers to use Gen AI to create scripts and voiceovers for their audio ads using Spotify Ads Manager in the U.S. and Canada. Spotify says the use of its AI tools will come at no additional cost to advertisers. The changes were pitched to marketers as a way to reach the coveted Gen Z demographic, who access the streaming service throughout the day, not just when they're engaged directly with the app and looking at the screen. The company touted that it now has over 251 million Gen Z users on its service.

Spotify Revamps Ad Platform with AI-Powered Tools, Global Ad Exchange

New features make it easier for advertisers to buy, create and measure campaigns with flexibility and innovation. Spotify unveiled an overhaul of its advertising ecosystem during its annual Spotify Advance event, introducing tools designed to enhance automation, creative output and brand performance measurement. At the centre of this revamp is the new Spotify Ad Exchange (SAX), a global programmatic marketplace that allows advertisers to reach Spotify's logged-in audience through real-time auctions. This next phase of Spotify Advertising signals the streaming giant's growing commitment to innovating at the intersection of culture, tech and creativity. With SAX, advertisers can now access Spotify's full suite of audio, video and display formats across music and soon, podcasts through platforms like Google DV360, Magnite and The Trade Desk, across major global markets including the US, India, Europe and others. In parallel, Spotify also launched Gen AI Ads, enabling advertisers in the US and Canada to create scripts and voiceovers for audio ads using generative AI at no extra cost. Coupled with the enhanced Spotify Ads Manager, which now supports advanced targeting, app installs, website traffic optimisation and upgraded measurement tools like Spotify Pixel and Brand Lift, advertisers of all sizes can now launch smarter, more efficient campaigns. Spotify is also doubling down on creative collaboration with Spotify's Creative Lab and AUX, its in-house consultancy that bridges brands with culture. New partnerships with Visa, Kona Big Wave and an extended alliance with Coca-Cola highlight the platform's growing influence in experiential branding. With over 251 million Gen Z users relying on Spotify as their daily companion, beyond screen time. Spotify here would connect a young and highly engaging audience with brands at meaningful touchpoints.

Spotify to Launch Ad Manager Platform, AI-Powered Voiceover Tools for Ads

The company also showcased its Creative Lab and AUX agencies Spotify introduced a suite of new ad solutions on Wednesday at its Spotify Advance event in New York. The biggest highlight is the upgrades to the programmatic advertising platform dubbed Spotify Ad Exchange (SAX), which will offer advertisers access to the music streaming platform's engaged and logged-in users. The company is also introducing a new ad manager and its first AI tools to generate scripts and voiceovers. Spotify is also expanding its partnership with Google and Magnite for the ad exchange platform. In a blog post, the Sweden-based music streaming platform detailed the new and upgraded ad solutions it is bringing for advertisers on the service. Spotify said it is modernising its ad platform to make it easier for advertisers to create, measure, and get results on their ads. The company's latest programmatic offering, which was first unveiled in October 2024, Spotify Ad Exchange or SAX, now offers advertisers access to the platform's engaged and logged-in users via real-time auction. It is now being expanded to The Trade Desk, Google's demand side platform Display & Video 360 and Magnite. Spotify says that integration with Yahoo DSP, Adform, and others will be added in the near future. Currently, SAX is available in Australia, Brazil, Canada, Europe, India, Mexico, New Zealand, Singapore, and the US. The platform is also adding new features to its Ads Manager platform. The company said it will now give advertisers more targeting capabilities, new 1P and 3P measurement solutions, and outcome-based objectives to help advertisers with diverse needs create campaigns on the platform. While the company did not provide a lot of details, it announced the Spotify Gen AI Ads, its first set of AI tools for advertisers. The company says the tools can generate ad scripts and voiceovers at no extra cost. It is available to advertisers in the US and Canada within the Ads Manager platform. Pitching to advertisers, Spotify said that free users tune in to the platform for two hours daily. However, the company did not reveal the number of users with two hours of average daily usage. Citing a survey conducted by the company, the platform claimed that 71 percent of its Gen Z users look at Spotify as a positive platform and an "antidote to doomscrolling."