Spotify Launches AI Ad Tools and Expands Programmatic Platform

The company introduces generative AI for ad creation and real-time auctions to bolster its advertising business and address slowing revenue growth.

Spotify unveiled generative AI tools for creating ad scripts and voiceovers, now available to advertisers in the U.S. and Canada at no extra cost.
The Spotify Ad Exchange (SAX) has been expanded to include real-time auctions and partnerships with Google and Magnite, offering advertisers access to engaged users.
New brand partnerships with Visa and Kona Big Wave were announced through Spotify's in-house consultancy, Spotify AUX.
The company emphasized its appeal to Gen Z and free-tier users, citing high engagement and positive perceptions among these demographics.
These updates aim to modernize Spotify's advertising platform and diversify revenue as ad-supported revenue growth slowed in late 2024.