Spotify Advertising has hit a new high note, unveiling a series of updates that make it easier than ever for advertisers to buy, create, and measure on its platform.
The company has been steadily investing in its ad technology, expanding industry partnerships, and modernizing its platform to deliver real results for advertisers of all sizes. At the inaugural Spotify Advance event in New York City, Spotify introduced a suite of new advertising solutions designed to unlock the full potential of its platform.
One of the major announcements was the launch of the Spotify Ad Exchange (SAX), a real-time programmatic marketplace giving advertisers access to Spotify’s engaged, logged-in audience with full addressability and measurement capabilities. As of today, advertisers can access SAX via The Trade Desk, Google Display & Video 360, and Magnite, with Adform and Yahoo DSP integrations coming soon.
Spotify also introduced enhancements to its self-serve Spotify Ads Manager, including improved targeting and measurement tools, aimed at helping advertisers better meet their business objectives.
On the creative side, Spotify unveiled new tools and services to make ad creation more accessible. These include its in-house creative agencies, Creative Lab and AUX, as well as the launch of Spotify Gen AI Ads, an intuitive tool that allows advertisers in the U.S. and Canada to use generative AI to produce scripts and voiceovers for audio ads—at no additional cost. A U.K. rollout is on the way.
To help advertisers better assess performance, Spotify is also expanding its measurement capabilities with tools like Spotify Brand Lift and a new App Installs objective. New partnerships with third-party measurement leaders such as DoubleVerify, IAS, AppsFlyer, and Kochava further bolster the platform’s analytics offering.
In a recent interview with For the Record, Spotify’s Global Head of Advertising Lee Brown reflected on the significance of the moment. “Spotify Advance marks a pivotal moment for our company as our advertising business enters a new stage,” Brown said. “We’ve been investing to become a platform that can deliver results for advertisers, whatever their goal, whatever their size.”
Brown emphasized that Spotify provides a unique environment for brands to connect with consumers, especially through its free tier, where users spend an average of two hours per day streaming music and podcasts. The platform is seen as a “positive environment,” with Spotify’s 2024 Culture Next report revealing that 71% of Gen Z listeners view Spotify as the ultimate antidote to doomscrolling.
Brown also spoke about Spotify’s cultural edge, noting how brands can collaborate with in-house teams like Creative Lab for campaign strategy and AUX for music consultancy. AUX’s recent partnerships with Visa, Kona Big Wave, and the expanded collaboration with Coke Studio highlight Spotify’s ability to integrate brand storytelling with music and fandom.
When asked how advertisers should approach Gen Z audiences, Brown pointed out that more than 251 million Gen Zers use Spotify as a daily companion—not just while looking at a screen, but throughout every part of their day. That context creates unique opportunities for brands to engage with this influential generation in more meaningful ways.
Spotify’s latest offerings represent a bold step forward for its advertising business—one that blends cutting-edge technology, creative storytelling, and cultural insight to empower brands and connect with audiences more effectively than ever before.