Spotify expands advertising platform with new tools and measurement solutions
Spotify is expanding its advertising offerings with new programmatic buying options, AI-powered ad creation, and improved measurement solutions. The goal is to make campaign management easier and more effective for advertisers.
At the "Spotify Advance Event" in New York, the streaming service presented the further development of its advertising platform. The innovations include the introduction of the Spotify Ad Exchange (SAX), a programmatic trading platform for digital audio advertising. SAX enables advertisers to access logged-in Spotify users via real-time auctions and offers comprehensive measurement functions. Following initial tests in the USA and Canada, SAX is now available in several international markets, including Europe.
The Spotify Ads Manager has also been expanded and offers extended targeting options, new first and third-party measurement solutions and performance-based campaign objectives. These include the new "App Install" marketing objective, which allows advertisers to target users who are most likely to download an app.
Automatic creation
With Spotify Gen AI Ads, the company is also introducing an AI-supported tool that automatically creates audio ads including scripts and voice-overs. The solution was previously only available in the USA and Canada, but is now gradually being rolled out internationally. In addition, the internal "Spotify Creative Lab" supports companies and agencies in the development of customized campaigns.
Advertising revenue more than doubled in 5 years
According to the company, advertising revenue has more than doubled since 2020. Spotify Ads Manager revenue increased by over 50 percent in the fourth quarter of 2024, and the use of video ads on the platform grew by 44 percent year-on-year in the US.
