Spotify unveiled a range of new advertising solutions during its Spotify Advance event in New York on Wednesday. A significant feature of the announcement is the enhanced programmatic advertising platform known as Spotify Ad Exchange (SAX), which will give advertisers access to the platform’s active and logged-in user base. Additionally, the company is launching a new ad manager alongside its inaugural AI tools for creating scripts and voiceovers. Spotify is also broadening its collaboration with Google and Magnite for the SAX platform.
In a blog post, Spotify, based in Sweden, outlined the upgraded advertising solutions aimed at enhancing the experience for advertisers on its platform. The company emphasized its commitment to modernizing the ad interface to facilitate the creation, measurement, and effectiveness of advertising campaigns.
The latest iteration of SAX, initially introduced in October 2024, now enables advertisers to connect with engaged and logged-in users through real-time auctions. This platform expansion includes partnerships with The Trade Desk, Google’s Display & Video 360, and Magnite, expanding the scope of its advertising reach.
Further integrations with Yahoo DSP, Adform, and additional platforms are expected soon. Currently, SAX is operational in various countries, including Australia, Brazil, Canada, Europe, India, Mexico, New Zealand, Singapore, and the United States.
Spotify is also enhancing its Ads Manager, which will now feature improved targeting capabilities, new first-party and third-party measurement solutions, as well as outcome-based objectives, catering to the diverse needs of advertisers for campaign creation.
While specifics were limited, the company introduced Spotify Gen AI Ads, the first set of AI tools available for advertisers. These tools are designed to generate ad scripts and voiceovers at no extra cost, accessible to advertisers in the U.S. and Canada within the Ads Manager.
In its pitch to advertisers, Spotify highlighted that free users spend an average of two hours daily on the platform. However, the exact number of users reaching this usage benchmark was not disclosed. According to an internal survey, Spotify indicated that 71 percent of its Gen Z audience views the platform positively, describing it as a remedy for “doomscrolling.”
