Spotify is making big changes to how ads work on its platform. At its Spotify Advance event in New York, the company announced new tools that make it easier for advertisers to create, buy, and track ads.
The biggest updates include a new system for real-time ad bidding and AI-generated audio ads.
The Spotify Ad Exchange (SAX) is a new feature that lets advertisers bid for ad space in real-time. This means they can reach Spotify’s logged-in users more efficiently.
Spotify has partnered with platforms like Google’s Display & Video 360 and Magnite to make this happen. SAX supports audio, video, and display ads and is available in several countries, including the U.S., Canada, Europe, and India. Soon, advertisers will also be able to run ads on podcasts.
Another update is Spotify Gen AI Ads, a tool that helps advertisers create audio ads quickly. Using AI, they can generate scripts and voiceovers within Spotify Ads Manager at no extra cost. This feature is currently available in the U.S. and Canada.
Spotify says these changes are designed to help advertisers connect with Gen Z listeners, who make up a large part of its user base.
With over 251 million Gen Z users, Spotify wants to give brands more ways to reach this audience throughout the day, whether they are actively using the app or just listening in the background.
To help advertisers get better results, Spotify has also upgraded its Ads Manager with improved targeting and measurement tools. Companies can now focus on specific goals like increasing app downloads or driving website traffic. The platform’s updated Spotify Brand Lift tool also helps businesses see how their ads are impacting brand awareness.
Beyond technology, Spotify is investing in creativity. Its Spotify Creative Lab works with brands to design unique ad campaigns tailored to the platform. Recent collaborations include the “Bestie Mode” campaign with Coca-Cola and Oreo.
Spotify is also connecting to brands with music and culture through its AUX consultancy, which recently partnered with Visa and Kona Big Wave.
The streaming giant is making it easier for businesses to advertise effectively via a combination of AI, real-time bidding, and creative partnerships. These will enhance the way brands reach their audiences on the platform.
