Spotify has unveiled its Spotify Ad Exchange (SAX) platform and new artificial intelligence (AI) tools designed for advertisers in India. The announcement was made on Monday, just a week after the global launch of these services. SAX functions as a programmatic advertising platform, streamlining the purchasing and placement of ads. According to Spotify, this marks the first time advertisers in India will benefit from comprehensive addressability and performance measurement capabilities. Additionally, the platform will allow users to create audio ads at no cost through its Generative AI Ads feature within the Ads Manager.
Spotify’s New Ad Platform and AI Features Now Available in India
The company shared details about the SAX platform and Generative AI Ads in a press release, emphasizing its initial launch in the United States and Canada before its expansion into new markets like India. Advertisers in India will now be able to access the platform’s logged-in user base through real-time auctions, enabling them to monitor ad reach effectively.
Importantly, SAX employs a real-time bidding (RTB) model for programmatic advertising. This system allows multiple advertisers to bid for ad space through demand-side platforms (DSPs), with the highest bidder securing the ad slot. The entire transaction is executed within seconds, resulting in timely ad placements.
In India, Spotify’s programmatic ads platform is integrated with key demand-side platforms such as Google Display & Video 360, Magnite, and The Trade Desk. Advertisers on these platforms can leverage Spotify’s range of audio, video, and display ads, with plans to incorporate podcast advertisements in the near future. Additionally, users will be able to identify target audiences and monitor outcomes across various media channels.
Spotify conducted an internal study involving over 350 ad campaigns across different publishers within Google DV 360 and reported that utilizing SAX resulted in an average incremental reach of 11.5 percent, all without increasing media expenditure. The platform is also designed to enhance unique reach while minimizing ad repetition, thereby reducing the potential for brand fatigue.
Moreover, Spotify is launching the Spotify Generative AI Ads feature, available through its Ads Manager. This tool enables advertisers to generate scripts and voiceovers using AI technology, facilitating the production of AI-driven voice ads at no extra charge. Advertisers of varying scales in India are encouraged to utilize this AI tool for the effective creation and deployment of scalable audio ads on the Spotify platform.
