On Wednesday, Spotify unveiled a range of new advertising solutions during its Spotify Advance event held in New York. Among the key announcements was the enhancement of its programmatic advertising platform, Spotify Ad Exchange (SAX), which will now provide advertisers access to a pool of engaged, logged-in users on the music streaming service. Additionally, Spotify introduced a new ad management tool along with its first suite of AI technologies designed to create scripts and voiceovers.
The Swedish streaming giant elaborated on its upgraded ad solutions in a blog post, emphasizing its intent to modernize the advertising experience. Spotify aims to streamline the process for advertisers to create, measure, and achieve results from their campaigns.
The newly upgraded programmatic feature, first announced in October 2024, allows advertisers to bid for access to Spotify’s logged-in user base in real time. The service is expanding its reach to platforms like The Trade Desk, Google’s Display & Video 360, and Magnite.
Spotify also indicated that integrations with Yahoo DSP, Adform, and other platforms are planned for the near future. Currently, SAX is available in countries such as Australia, Brazil, Canada, various European nations, India, Mexico, New Zealand, Singapore, and the United States.
Enhanced capabilities are also coming to Spotify’s Ads Manager. The platform will now offer advertisers improved targeting options, both first-party and third-party measurement solutions, and outcome-based objectives to help meet the diverse needs of advertisers.
While details were minimal, Spotify announced the launch of Spotify Gen AI Ads, its initial set of AI tools for advertisers which can generate ad scripts and voiceovers at no additional cost. This feature is currently accessible to advertisers in the U.S. and Canada through the Ads Manager.
In appealing to potential advertisers, Spotify highlighted that free users spend an average of two hours each day on the platform. However, the company did not disclose the total number of users engaging at this level. According to an internal survey, Spotify reported that 71 percent of its Gen Z audience views the platform as a positive alternative to the often overwhelming nature of online content consumption.
