Spotify has rolled out Gen AI ads, among other changes to its advertising business.
At an event in New York City on Thursday, April 3, 2025, the company introduced a new programmatic offering, the “Spotify Ad Exchange (SAX),” which enables advertisers to reach Spotify’s logged-in users via real-time auctions.S
Spotify revealed new partnerships with Google’s demand-side platform, Display & Video, Magnite, with Yahoo DSP, Adform, and others “soon” to come.
According to the Swedish audio streaming company, SAX will provide full addressability and measurement capabilities.
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The partners will initially be able to advertise within Spotify’s audio, video, and display formats across music, with podcast support on the way.
To note, SAX will be available in the US, Canada, Europe, Australia, New Zealand, India, Singapore, Brazil, and Mexico.
On the other hand, the company said it is including AI into its advertising offerings by allowing marketers to use Gen AI to create scripts and voiceovers for their audio ads using Spotify Ads Manager in the US and Canada.
Importantly, “the use of its AI tools will come at no additional cost to advertisers.”
It is worth mentioning that the changes were pitched to marketers as a way to reach the coveted Gen Z demographic, who access the streaming service throughout the day, the company notes.
Spotify has over 251 million Gen Z users on its service.
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