Spotify has officially introduced its Spotify Ad Exchange (SAX) platform and advanced artificial intelligence (AI) tools for advertisers in India. The announcement, made on Monday, follows the global rollout of these services and marks a significant milestone for the audio streaming service in the Indian market. SAX is a programmatic advertising platform designed to streamline the ad buying and placement processes, offering advertisers capabilities for comprehensive addressability and performance measurement never before seen in India. Additionally, the platform will enable users to create audio ads at no cost using Generative AI Ads within the Ads Manager.
Spotify’s New Ad Platform and AI Features Now Available in India
In its press release, the company detailed the launch of SAX and Generative AI Ads, initially introduced in the US and Canada before expanding to additional markets, including India. Through SAX, advertisers can tap into a pool of logged-in users through a real-time auction mechanism, enhancing their ability to measure the effectiveness and reach of their campaigns.
Importantly, SAX incorporates a real-time bidding (RTB) model for programmatic advertising, enabling multiple advertisers to compete for ad space via demand-side platforms (DSPs). The highest bidder secures the ad placement, with the entire process occurring in mere seconds.
For the Indian market, Spotify’s programmatic ads platform is integrated with major DSPs, including Google Display & Video 360, Magnite, and The Trade Desk. This integration allows advertisers to leverage Spotify’s range of audio, video, and display advertising options. The company has plans to include podcast advertising in its offerings shortly. Moreover, advertisers will be able to identify their target audiences and assess their results across various media platforms.
Spotify’s internal analysis of over 350 ad campaigns across different publishers on Google DV 360 revealed that the SAX platform achieved an average incremental reach of 11.5 percent without elevating media spending. Furthermore, the platform effectively maximizes unique reach while minimizing ad repetition, addressing concerns surrounding brand fatigue.
In addition to SAX, Spotify is rolling out its Generative AI Ads feature within the Ads Manager. This innovation allows advertisers to generate scripts and voiceovers using AI technology, facilitating the creation of AI-generated voice ads at no extra cost. This tool is designed to support advertisers of all scales in India, empowering them to craft and distribute scalable audio ads on the Spotify platform.
