Spotify announced Gen AI Ads, among other changes to its advertising business at an event in New York City on Thursday. In particular, the company has introduced Spotify Ad Exchange (SAX), a new program offering. This allows advertisers to contact Spotify logged in users via real-time auctions.
In scaling Sax News, Spotify said it has “instantly” inked its new partnerships with Google’s Demandside Platform, Display & Video 360 and Magnite with “Yahoo DSP, Adform, and more.” Trade desks are also supported. SAX will offer “full addressability” and measurement capabilities, the company said.
Partners can initially advertise the entire music in Spotify audio, video and display formats, with podcast support being supported along the way. SAX is available in the US, Canada, Europe, Australia, New Zealand, India, Singapore, Brazil and Mexico.
In another major announcement, the company said it is integrating AI into advertising delivery by using Spotify Ads Manager in the US and Canada to allow marketers to use Gen AI to create scripts and narration for audio ads.
Spotify said using AI tools does not cost advertisers additional costs.
The change was pitched to marketers as a way to reach the coveted Gen Z Zemagraphic, which not only involves directly with the app and views the screen, but also accesses streaming services throughout the day. The company is currently touting over 251 million Gen Z users as participating in the service.
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