Spotify Ads Manager offers AI, improved analytics and support via AUX
Spotify continues to aggressively evolve its advertising direction. The company is offering marketers new ways to target their audiences more precisely. At its first in-house Advance event in New York, the team announced several innovations to Spotify Ads Manager at once. These include AI-powered tools, enhanced measurement capabilities and new ways to collaborate with brands.
In 2024, Spotify ended a full year in the black for the first time, opening up new horizons for its advertising business. However, advertising revenue growth slowed in the second half of the year. The company noted that revenue growth in its music and podcast segments was driven by growth in the volume of shows sold. This effect was partially offset by lower placement costs.
The largest contribution to advertising growth came from automated sales channels. They confirmed their effectiveness and key role in scaling advertising campaigns.
Generative AI in the creation of audio adverts
One of the key updates at Spotify was the integration of generative AI. Advertisers in the US can now automatically create audio scripts and voiceovers directly in Ads Manager. This solution allows you to:
- reduce the time required to produce audio clips;
- lower the cost of hiring third-party production teams;
- test hypotheses faster by creating multiple versions of adverts for A/B testing.
This gives even small brands access to professional-sounding adverts without significant investment.
Improved measurement tools
To improve the effectiveness of campaigns, Spotify has introduced new analytics tools. These allow you to:
- track listener engagement more accurately;
- measure the impact of advertising across music and podcast environments;
- receive real-time reports, making it easier to optimise campaigns on the go.
With these improvements, marketers can make more informed, data-driven decisions.
Among other things, Spotify is strengthening the programmatic component of the platform. The growth of sales through automated channels became one of the revenue drivers at the end of 2024. For advertisers, this means:
- more flexible advertising buying options;
- scalability of campaigns with stable budget control;
- integration with external DSPs, making it easier to place audio ads in multi-channel strategies.
Consultancy support via Spotify AUX
For large businesses, Spotify offers additional expertise through its Spotify AUX division. This initiative has already launched partnerships with Visa and Kona Big Wave brands. AUX helps to:
- develop creative strategies tailored to Spotify’s audience behaviour;
- execute out-of-the-box campaigns focused on awareness and engagement;
- get support in developing content that seamlessly fits into the user experience.
While premium subscriptions remain Spotify’s main source of revenue, the platform is actively developing its advertising business. More than 425 million monthly users use the free, ad-supported version of Spotify. And that’s significant potential for brands.
AI integration, new analytics tools and support for Spotify AUX make the platform attractive to small businesses and large advertisers alike.