Spotify Introduces New Solutions for Advertisers that Transform Buying, Measurement & Creativity

Note: These are notes we’ve been sent from the PR team; there doesn’t appear to be a press release.

Today at Spotify Advance, we’re unveiling the next phase of Spotify Advertising. We’ve upgraded our ad tech, expanded partnerships, and deepened our expertise to make it easier for advertisers to **buy, create, and measure campaigns with clear results.

This marks a major leap in automated buying and creative innovation—highlighted by the newSpotify Ad Exchange and Spotify Gen AI Ads—giving advertisers fresh, easy ways to tap into Spotify’s unique blend of culture, tech, and creativity.

Here are our Key Announcements:

1. We’re modernizing our ad platform to give advertisers the flexibility to buy Spotify in the way that works best for them: the brand new Spotify Ad Exchange and our self-serve Spotify Ads Manager.

• Spotify Ad Exchange (SAX): Our new programmatic offering. For the first time, advertisers can now access Spotify’s engaged, logged-in users via real-time auction with full addressability and measurement capabilities in whatever way works best for them. Beginning today, in addition to The Trade Desk, the Spotify Ad Exchange is now available via Google’s Display & Video 360 and Magnite, with Yahoo DSP, Adform, and many more to come soon. These partners now have access to our suite of audio, video, and display formats across music, with podcasts coming soon. SAX is now available to advertisers across US, Canada, Europe, Australia, New Zealand, India, Singapore, Brazil, and Mexico.

• Spotify Ads Manager: We’re continuing to innovate our self-serve platform with more advanced targeting capabilities, new 1P & 3P measurement solutions, and new outcome-based objectives to help advertisers of all sizes create, optimize, and measure their Spotify campaigns, including Spotify Pixel, Custom Audiences, key third-party partnerships and a new App Installs objective.

2. We’re making it easier than ever for advertisers to create with Spotify.

• Spotify Gen AI Ads: We’re bringing our decades-long AI expertise and innovative approach to our advertising partners to enable them to create scripts and voiceovers at no additional cost, making it easier than ever to create high-quality, scalable audio ads. Gen AI Ads are available to advertisers in the U.S. and Canada in Spotify Ads Manager.
• Spotify Creative Lab: Our dedicated team of creative minds work collaboratively with brands and agencies to inspire and scale creativity and to build unique and effective campaigns made just for the Spotify platform. Our Creative Lab team has helped brands create first-of-its-kind Spotify experiences, like Bestie Mode with Coca-Cola and Oreo, American Express and Resy’s Music Taste campaign, and the ‘100 Years of Chevrolet’ in Brazil.
• Spotify AUX: Our in-house consultancy brings together our unrivaled know-how in music, podcasts, culture, experiential, and content production to bridge the worlds of brands, artists, creators, and fandom. Our mission is to provide innovative solutions that elevate brands through the power of music and culture.
• Today, we’re thrilled to welcome two partners to the AUX family, Visa and Kona Big Wave. We’re also continuing our multi-year partnership with Coca-Cola. We’re partnering with Visa to address artists’ evolving needs as entrepreneurs and business owners. And together with Kona, we’re creating live experiences that amplify their storytelling during tentpole moments and solidify their place in culture.

3. We’re helping advertisers reach their goals on Spotify with new measurement tools built just for Spotify and new 3P partnerships: We’ve rebuilt our first-party measurement stack and expanded tools with key third-party partnerships, enabling advertisers to evaluate performance across the funnel.

• New Lower-Funnel Objectives: Starting today, our new App Installs Objectiveenables advertisers to show ads to people likely to click and download their app, while our new Website Traffic Objective enables advertisers to optimize their campaign towards people most likely to view their website.
• Measurement Solutions: We’ve updated Spotify Brand Lift, our 1P measurement tool that helps advertisers understand how their Spotify campaigns impact their brand metrics. We’re also bringing Spotify Brand Lift and Spotify Pixel to Ads Manager Lastly, we’re investing in key 3P partnerships, such as DoubleVerify and IAS for Ads Manager, and adopting The Trade Desk ​​Unified ID 2.0, LiveRamp’s RampID, and Google’s Display & Video 360’s PAIR for SAX to offer greater measurement capabilities and ensure that Spotify can be a trusted partner in this ever-evolving landscape.

Topline Stats:

Business Growth:

• We’ve accomplished Spotify’s first full year of profitability by growing our total revenues 20% YoY, while operating more nimbly and profitably and driving what we call sustainable growth (1).
• Our ad revenue has more than doubled since 2020 with significant yearly gains, driven primarily by brand advertising. (141% increase in ad revenue since 2020) (2).
• Today, we work with tens of thousands of advertisers. As we move down the funnel to offer more performance-based advertising and increase our appeal to video-first advertisers, we believe we have the opportunity to serve many more multiples of advertisers in the near future. (3).
• Automated channels drive $2 billion in ad spending with digital audio in 2025 (4).
• Automated planning and buying has become the industry default — accounting for over90% of US digital display dollars (5).
• Since we launched our pilot last year, we’ve seen over 5,000 advertisers jump in to test (6).
• Spotify Ads Manager revenue grew more than 50% YOY Q4’24 (13).

Spotify Advertising:

• 675 million users in 184 markets around the world trust Spotify to give them an unmatched experience every time they tap in (7). And over 90% of them say Spotify is essential to their daily life (8).
• Spotify is the #1 most home-screened app (9).
• Video consumption on Spotify is exploding. In fact, in-focus time is up 44% YoY in the US (10).
• On the ads side, we’ve found that combining audio and video ads increases purchase intent by 27% and incremental sales by 66% compared to audio alone (11).
• As we’ve rolled out AI Ads, we’re already seeing that when advertisers choose to produce an audio ad with Spotify Ads Manager’s creative tools, 40% of them are already choosing to do so with our AI Ad tool (12).

Source:

1. Spotify 1P Data

2. Spotify 1P Data, FY 2020 vs 2024

3.Spotify 1P Data

4. eMarketer

5. eMarketer

6. Spotify 1P Data

7. Q4 Earnings

8. GWI Global Study, June 2024

9. Hub Entertainment Research, global, 2024

10. Spotify 1P Data, Q4’23 vs Q4 ‘24

11. What We Know research, global, 2024

12. Spotify 1P Data

13. Spotify 1P Data