Spotify Launches AI Tools for Advertisers and New Ad Manager

Spotify is putting more effort on attracting ad dollars. Along with expanding its programmatic ad agreements with Google, Magnite, and The Trade Desk, the streaming platform also revealed a suite of new AI-powered advertising capabilities.

As they revealed how they are making it simpler than ever for marketers to purchase, produce, and measure on and for our platform, Spotify Advertising reached a new high note today, at its Spotify Advance event in New York on Wednesday, Spotify unveiled a number of new advertising options. The most notable feature is the enhancements made to Spotify Ad Exchange (SAX), a programmatic advertising network that will provide marketers access to the active and logged-in customers of the music streaming service. Along with its first AI tools for creating voice overs and scripts, the business is also launching a new ad manager. Additionally, Spotify is growing its collaboration with Google and Magnite on the ad exchange platform.

Spotify is modernizing its ad platform to make it easier for advertisers to design, measure, and receive results on their commercials. The Swedish music streaming service described the new and improved ad solutions it is delivering for marketers on the site in a blog post.

As a platform that delivers results for advertisers of all sizes, they have been hard at work investing in their ad platform, modernizing our ad tech, and strengthening industry partnerships.

Spotify Ad Exchange, also known as SAX, the company’s most recent programmatic solution, was initially introduced in October 2024 and gives advertisers access to the platform’s logged-in and active users through a real-time auction. The announcement of the launch of Spotify Ad Exchange, or SAX for short, also marked the beginning of the next stage of Spotify advertising. With full addressability and measurement capabilities, SAX will allow advertisers to access Spotify’s logged-in and engaged users through a real-time auction for the first time. Currently, advertisers can connect to SAX through The Trade Desk, Google Display & Video 360, and Magnite, with Adform and Yahoo DSP on the horizon.

Spotify states that connectivity with Yahoo DSP, Adform, and others will be implemented in the near future. SAX is now accessible in the US, Australia, Brazil, Canada, Europe, India, Mexico, New Zealand, and Singapore.

In order to assist advertisers with a variety of needs in creating campaigns on the platform, the business said that it would be introducing more targeting tools, new 1P and 3P measurement solutions, and outcome-based objectives to its Ads Manager platform.

Additionally, Spotify introduced Spotify Gen AI Ads, a generative AI tool that enables advertisers to create voiceovers and scripts rapidly and for free. The solution, which is now accessible in the US and Canada via Spotify Ads Manager, aims to increase accessibility to high-quality, scalable audio advertisements.

With limited information, the company revealed its first set of AI tools for advertisers, Spotify Gen AI Ads, which can create voiceovers and ad scripts for free and is accessible to US and Canadian advertisers through the Ads Manager platform.

According to Spotify’s pitch to advertising, two hours a day are spent on the platform by its free users. The number of customers with an average daily usage of two hours was not disclosed by the corporation, though. The website stated that 71 percent of its Gen Z users view Spotify favourably and as a “antidote to doomscrolling,” citing a poll it conducted.