Spotify Overhauls Ad Platform With Launch of Programmatic Exchange, AI Tools.

Spotify has announced a sweeping upgrade to its advertising technology, positioning itself as a more powerful, flexible and creative destination for advertisers. “We’ve upgraded our ad tech, expanded partnerships, and deepened our expertise to make it easier for advertisers to buy, create, and measure campaigns with clear results,” it says in the announcement. The centerpiece is a trio of innovations that blend automation, programmatic scale and generative AI.

The biggest shift comes with the launch of the Spotify Ad Exchange (SAX), the company’s new programmatic platform. For the first time, advertisers can tap into Spotify’s logged-in user base through real-time auctions, gaining access to audio, video and display inventory targeting its music listeners. The Spotify Ad Exchange (SAX) will eventually also add podcast inventory, but the company has not offered any insight into how quickly that will happen.

SAX is now integrated with major demand-side platforms, including Google’s Display & Video 360, Magnite, and The Trade Desk, with Yahoo DSP, Adform, and others on the way. The exchange launches in key markets, including the U.S., Canada, Europe, Australia, New Zealand, India, Singapore, Brazil and Mexico.

Spotify is also rolling out Spotify Gen AI Ads, a new tool that enables advertisers to generate scripts and voiceovers using generative AI — free of charge. Available via the Spotify Ads Manager in the U.S. and Canada, the feature aims to make high-quality, scalable audio ads accessible to advertisers of all sizes.

Meanwhile, Spotify Creative Lab continues its work with brands to develop custom ad experiences. Previous collaborations include campaigns with Coca-Cola, Oreo, American Express and Chevrolet.

Spotify’s in-house cultural consultancy, Spotify AUX, also announced new partnerships with Visa — focusing on artist empowerment — and Kona Big Wave, which will leverage live experiences to extend brand storytelling. Spotify is also extending its long-running creative collaboration with Coca-Cola.

Upgraded Self-Serve Tools And Measurement Stack

As part of the upgrades, the self-serve Spotify Ads Manager is getting a major boost with new audience targeting, custom audiences, and advanced measurement tools. New App Installs and Website Traffic objectives allow marketers to optimize toward lower-funnel outcomes.

Spotify is also expanding its first-party measurement tools, including a revamped Spotify Brand Lift and integration of the Spotify Pixel. For third-party validation, Spotify has inked new partnerships with DoubleVerify, Integral Ad Science, LiveRamp, The Trade Desk’s Unified ID 2.0, and Google’s PAIR.

“We’ve reimagined what it means to advertise on Spotify,” the company says in the announcement. “This is about giving advertisers the tools to buy, create and measure seamlessly — on a platform that merges culture, tech and creativity.”

The updates were rolled out Wednesday (April 2) during Spotify’s version of an Upfront, called Advance, in New York. It says since the pilot was launched last year, more than 5,000 advertisers have taken part in the test of the new features.