Are you a marketer wondering how to reach Gen Z when they are listening to music or streaming podcasts, without actively looking at a screen? Or do you want to produce audio campaigns more quickly without a production studio? Spotify is introducing new features that directly address this.
During an event in New York, Spotify announced the arrival of Gen AI audio ads and the new platform Spotify Ad Exchange (SAX). This allows advertisers to target logged-in Spotify users through real-time auctions.
Programmatic advertising receives a boost
With SAX, Spotify fully enters the realm of programmatic advertising. Through new collaborations with Google’s Display & Video 360, Magnite, Yahoo DSP, and Adform, advertisers can broadly deploy their campaigns. Support for The Trade Desk is also included. The investment is measurable and focused on complete addressability.
Advertisements can be displayed in audio, video, and display formats. Initially, this will be limited to music, but podcasts will follow soon. SAX is being rolled out in the US, Canada, Europe, Australia, New Zealand, India, Singapore, Brazil, and Mexico.
AI makes audio campaigns easier
Another important step is the implementation of generative AI within Spotify Ads Manager. Advertisers in the US and Canada can use this tool to automatically generate scripts and voice-overs. This lowers the barrier to developing audio campaigns. The AI functionality is included and does not incur any additional costs.
What does this mean for companies?
Spotify is responding to the changing listening habits, particularly of Gen Z. This demographic uses the platform throughout the day and often does not look at the screen. Thanks to AI and programmatic tools, companies can reach them better and more efficiently. This presents opportunities for advertisers who want to increase their visibility without relying on visual ads.
The combination of real-time bidding, targeted targeting, and low production costs makes Spotify more appealing to marketers focused on young audiences. The impact lies primarily in the scalability and accessibility of audio campaigns that can be set up quickly and efficiently.