Spotify unveils Gen AI ads and programmatic buying with Spotify Ad Exchange

Spotify has introduced a transformative shift in its advertising business, unveiling its latest innovations at the Spotify Advance event in New York City. The streaming giant has debuted Gen AI-powered ads alongside the Spotify Ad Exchange (SAX), a new programmatic offering designed to modernize and streamline the ad-buying experience.

The launch of SAX allows advertisers to access Spotify’s logged-in, highly engaged users through real-time auctions. By integrating with major demand-side platforms such as Google’s Display & Video 360, Magnite, and The Trade Desk, as well as upcoming partnerships with Yahoo DSP and Adform, SAX ensures full addressability and enhanced measurement capabilities. Advertisers can now place ads across Spotify’s audio, video, and display formats, with podcast support arriving soon. The platform is available in key markets, including the U.S., Canada, Europe, Australia, New Zealand, India, Singapore, Brazil, and Mexico.

Through the Spotify Ads Manager, advertisers in the U.S. and Canada can now utilize AI to generate high-quality scripts and voiceovers for their campaigns at no additional cost. This innovation significantly lowers the barrier to entry for brands looking to create impactful and scalable audio ads. The introduction of Gen AI Ads is part of Spotify’s broader effort to enhance creative capabilities and offer cutting-edge solutions that meet advertisers’ evolving needs.

Beyond programmatic buying and AI-generated ads, Spotify is doubling down on creative innovation with initiatives like the Spotify Creative Lab and Spotify AUX. The Creative Lab collaborates with brands to craft unique, first-of-their-kind ad experiences tailored to Spotify’s platform, as seen in past campaigns with Coca-Cola, Oreo, and American Express. Meanwhile, Spotify AUX serves as an in-house consultancy that connects brands with music, podcasts, and cultural experiences to enhance their marketing strategies. New partners, including Visa and Kona Big Wave, are joining AUX, further expanding its impact.

To ensure advertisers can track and optimize their campaigns effectively, Spotify has revamped its first-party measurement tools and introduced new third-party partnerships. The updated Spotify Brand Lift tool provides deeper insights into how campaigns influence brand perception, while Spotify Pixel and new lower-funnel objectives—such as App Installs and Website Traffic—help advertisers drive more tangible business results. These advancements ensure that Spotify remains a trusted and data-driven advertising partner in an ever-evolving digital landscape.

With over 251 million Gen Z users, Spotify positions itself as a prime platform for brands looking to connect with this influential demographic. The company emphasizes that its users engage with the service throughout the day, offering advertisers multiple touchpoints beyond just screen interactions. By leveraging its AI-powered tools, programmatic buying capabilities, and creative solutions, Spotify continues to push the boundaries of digital audio advertising, providing marketers with innovative and effective ways to reach their audiences.