Spotify Revamps Ad Platform with AI-Powered Tools, Global Ad Exchange

Spotify unveiled an overhaul of its advertising ecosystem during its annual Spotify Advance event, introducing tools designed to enhance automation, creative output and brand performance measurement. 

At the centre of this revamp is the new Spotify Ad Exchange (SAX), a global programmatic marketplace that allows advertisers to reach Spotify’s logged-in audience through real-time auctions.

This next phase of Spotify Advertising signals the streaming giant’s growing commitment to innovating at the intersection of culture, tech and creativity. With SAX, advertisers can now access Spotify’s full suite of audio, video and display formats across music and soon, podcasts through platforms like Google DV360, Magnite and The Trade Desk, across major global markets including the US, India, Europe and others.

In parallel, Spotify also launched Gen AI Ads, enabling advertisers in the US and Canada to create scripts and voiceovers for audio ads using generative AI at no extra cost. Coupled with the enhanced Spotify Ads Manager, which now supports advanced targeting, app installs, website traffic optimisation and upgraded measurement tools like Spotify Pixel and Brand Lift, advertisers of all sizes can now launch smarter, more efficient campaigns.

Spotify is also doubling down on creative collaboration with Spotify’s Creative Lab and AUX, its in-house consultancy that bridges brands with culture. New partnerships with Visa, Kona Big Wave and an extended alliance with Coca-Cola highlight the platform’s growing influence in experiential branding.

With over 251 million Gen Z users relying on Spotify as their daily companion, beyond screen time. Spotify here would connect a young and highly engaging audience with brands at meaningful touchpoints.