Spotify is shaking up the advertising landscape with a wave of new features, headlined by the debut of generative AI (Gen AI) ads and a programmatic ad exchange. Announced during a live event in New York City, the streaming giant introduced the Spotify Ad Exchange (SAX), a new platform that allows advertisers to connect with Spotify’s logged-in users through real-time auctions.
With SAX, Spotify is opening up deeper programmatic access to its ad inventory, aiming to simplify how brands reach listeners across music, video, and display formats. Initially, the programmatic rollout will focus on music content, while podcast support is expected soon.
To enhance reach, Spotify is teaming up with top ad tech players. The company confirmed new partnerships with Google’s Display & Video 360 (DV360), Magnite, and Yahoo DSP, along with Adform and other platforms expected to join shortly. The Trade Desk is already integrated, giving marketers multiple access points into Spotify’s ad ecosystem. According to Spotify, the SAX platform provides full addressability and robust ad performance measurement tools.
SAX will be available in major global markets including the U.S., Canada, Europe, Australia, New Zealand, India, Singapore, Brazil, and Mexico—expanding Spotify’s footprint in both mature and emerging ad markets.
Spotify Adds AI Scriptwriting and Voiceovers to Ads Manager
Beyond programmatic buying, Spotify is diving deeper into artificial intelligence. The company revealed that advertisers in the U.S. and Canada can now leverage generative AI tools directly within Spotify Ads Manager to create custom scripts and voiceovers for audio ads—streamlining the creative process and saving time for marketers.
This AI-powered feature aims to make ad production more accessible and cost-effective, especially for smaller businesses or marketers with limited resources. Importantly, Spotify confirmed that these Gen AI tools will be available at no extra cost to advertisers.
Spotify Targets Gen Z with Smarter Ad Tools
Spotify’s latest advertising push is strategically focused on reaching Gen Z—a coveted audience for many brands. With over 251 million Gen Z users on its platform, the company highlighted how this generation engages with audio throughout the day, not just when actively using the app. That “always-on” listening behavior gives advertisers unique opportunities to stay top-of-mind during daily routines, whether users are commuting, working, or relaxing.
By combining advanced AI tools with real-time ad targeting, Spotify aims to offer marketers a more intelligent and flexible way to engage Gen Z audiences who demand authenticity, speed, and relevance.
