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On Fri, 4 Apr, 12:04 AM UTC
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[1]
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.
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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.
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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."
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Spotify unveils major updates to its advertising platform, including AI-generated ads and a new programmatic marketplace, aiming to enhance advertiser reach and creativity while targeting Gen Z users.
Spotify has unveiled a major overhaul of its advertising ecosystem, introducing the Spotify Ad Exchange (SAX), a global programmatic marketplace. This new platform allows advertisers to reach Spotify's logged-in audience through real-time auctions, offering full addressability and measurement capabilities 12.
SAX will be available in multiple countries, including the US, Canada, Europe, Australia, New Zealand, India, Singapore, Brazil, and Mexico 13. The company has announced partnerships with several demand-side platforms, including Google's Display & Video 360, Magnite, and The Trade Desk, with Yahoo DSP and Adform integrations coming soon 123.
In a significant move towards AI integration, Spotify has launched Gen AI Ads, enabling advertisers in the US and Canada to create scripts and voiceovers for audio ads using generative AI 12. This feature is available at no additional cost to advertisers and is accessible through the Spotify Ads Manager platform 3.
Spotify has also upgraded its Ads Manager platform, offering advertisers more targeting capabilities, new measurement solutions, and outcome-based objectives 23. These enhancements aim to help advertisers with diverse needs create more effective campaigns on the platform.
Spotify is positioning these changes as a way for marketers to reach the coveted Gen Z demographic. The company boasts over 251 million Gen Z users on its service, emphasizing that these users access Spotify throughout the day, not just during screen time 12. According to a survey conducted by Spotify, 71 percent of its Gen Z users view the platform as a positive "antidote to doomscrolling" 3.
Spotify is doubling down on creative collaboration through its Creative Lab and AUX, an in-house consultancy that bridges brands with culture. The company has announced new partnerships with Visa and Kona Big Wave, as well as an extended alliance with Coca-Cola 2.
Spotify's free users reportedly tune in to the platform for an average of two hours daily, although the company did not disclose the exact number of users with this level of engagement 3. The new advertising tools and exchange are designed to make it easier for advertisers to buy, create, and measure campaigns with increased flexibility and innovation 2.
The new advertising features will initially support audio, video, and display formats across music content, with podcast support planned for the future 1. These updates signify Spotify's growing commitment to innovating at the intersection of culture, technology, and creativity in the advertising space 2.
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Spotify launches AI-powered ad generation tools for advertisers in the US and Canada, aiming to boost ad revenue but potentially risking user satisfaction and retention.
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4 Sources
Amazon Ads introduces AI creative studio and Audio generator, revolutionizing ad creation across multiple media formats and enhancing advertiser capabilities.
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3 Sources
Spotify has launched an AI-powered playlist creation feature in the US, with plans for global expansion. This new tool allows users to generate personalized playlists through text prompts, leveraging artificial intelligence to curate music selections.
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22 Sources
TikTok introduces Smart+, an AI-driven platform that automates ad campaign creation and deployment, competing with similar offerings from Google and Meta.
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3 Sources
Spotify is reportedly developing a new premium tier called 'Music Pro', which may include AI-powered mixing tools and exclusive perks, as part of its strategy to increase revenue and offer more value to subscribers.
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