At an event in New York City, Spotify announced several updates to its advertising business, including the introduction of Gen AI ads. A significant development is the launch of the Spotify Ad Exchange (SAX), a new programmatic offering that enables advertisers to access Spotify’s logged-in users through real-time auctions.
Spotify has revealed new collaborations with Google’s demand-side platform, Display & Video, Magnite, along with Yahoo DSP, Adform, and others expected to join soon. The Trade Desk is also included in the list of supported platforms. SAX is designed to provide full addressability and measurement capabilities.
These partners will initially be able to advertise using Spotify’s audio, video, and display formats across music, with support for podcasts anticipated in the future. The service will be available in various regions, including the U.S., Canada, Europe, Australia, New Zealand, India, Singapore, Brazil, and Mexico.
Additionally, Spotify announced it would integrate AI technology into its advertising solutions. This integration allows marketers in the U.S. and Canada to utilize Gen AI for creating scripts and voiceovers for audio ads through Spotify Ads Manager.
The company assured advertisers that the use of these AI tools would incur no additional charges.
These updates were promoted as strategies for marketers to engage with the Gen Z demographic, who frequently interact with the streaming service throughout the day, even when not actively looking at the screen. Spotify reported having more than 251 million Gen Z users on its platform.
