Spotify introduced a suite of new ad solutions on Wednesday at its Spotify Advance event in New York. The biggest highlight is the upgrades to the programmatic advertising platform dubbed Spotify Ad Exchange (SAX), which will offer advertisers access to the music streaming platform's engaged and logged-in users. The company is also introducing a new ad manager and its first AI tools to generate scripts and voiceovers. Spotify is also expanding its partnership with Google and Magnite for the ad exchange platform.

Spotify Unveils First Advertiser-Focused AI Tools

In a blog post, the Sweden-based music streaming platform detailed the new and upgraded ad solutions it is bringing for advertisers on the service. Spotify said it is modernising its ad platform to make it easier for advertisers to create, measure, and get results on their ads.

The company's latest programmatic offering, which was first unveiled in October 2024, Spotify Ad Exchange or SAX, now offers advertisers access to the platform's engaged and logged-in users via real-time auction. It is now being expanded to The Trade Desk, Google's demand side platform Display & Video 360 and Magnite. 

Spotify says that integration with Yahoo DSP, Adform, and others will be added in the near future. Currently, SAX is available in Australia, Brazil, Canada, Europe, India, Mexico, New Zealand, Singapore, and the US.

The platform is also adding new features to its Ads Manager platform. The company said it will now give advertisers more targeting capabilities, new 1P and 3P measurement solutions, and outcome-based objectives to help advertisers with diverse needs create campaigns on the platform.

While the company did not provide a lot of details, it announced the Spotify Gen AI Ads, its first set of AI tools for advertisers. The company says the tools can generate ad scripts and voiceovers at no extra cost. It is available to advertisers in the US and Canada within the Ads Manager platform.

Pitching to advertisers, Spotify said that free users tune in to the platform for two hours daily. However, the company did not reveal the number of users with two hours of average daily usage. Citing a survey conducted by the company, the platform claimed that 71 percent of its Gen Z users look at Spotify as a positive platform and an “antidote to doomscrolling.”