During Spotify’s Advance event hosted in New York, they discussed the updates they’ve made to improve buying and selling through the music platform. Notably, Spotify Ad Exchange.
Spotify have been working on advancing their advertising products. Recently, at their Advance event, they discussed the measures they’ve put in place to make the buying and selling process easier for advertisers. They’ve even added a new product.
The music platform believe many advertisers look to them for the next big thing. This is why they’ve been working to improve their current features and also have added Spotify Ad Exchange as well as Spotify Gen AI Ads.
Their current advert platform has been revamped, to provide flexibility, so advertisers can buy in a way that suits them best. It’s been referred to as self-serve. Spotify Ad Exchange known as SAX will allow advertisers to see real-time user data.
Spotify Ad Exchange
Available via Google’s Display & Video 360, Magnite, Adform and The Trade Desk, Spotify Ad Exchange (SAX) will let advertisers see users that are logged in. Allowing them to real-time auction in a way that works better for their own needs.
SAX has been made available to advertisers in the US, Canada, Europe, New Zealand, Australia, India, Singapore, Brazil and Mexico. An ad exchange acts as an online marketplace. Advertisers can place ads depending on real-time user use.
Spotify Ads Manager
This feature already existed as a self-serve platform. Allowing advertisers to essentially buy what they need, when they need it. However, Spotify have now improved their targeting capabilities. Meaning, how advertisers can target their preferred market.
There are new 1P and 3P measurement solutions. This refers to first-party data, information a user provides themselves, to a platform. 3P is third-party data, information collected by the advertisers or platform themselves.
Examples of third-party collected data is information such as, reach and viewability. Where have people seen the brand, have they interacted with the ads? Collecting data such as how impactful the adverts have been, have they brought any new customers in?
First-party examples are usage of coupon codes. A customer has found and used a code, and therefore have made the decision to purchase an item. Perhaps they wouldn’t have bought it at full price. QR codes are also a similar example of 1P usage.
Spotify Gen AI Ads
Spotify are introducing AI tools, allowing advertisers to create scripts and voiceovers. This won’t come at an additional cost, but will give people the tools to create high-quality adverts that will bring customers to their service.
This is only available to those in the US and Canada at the moment. It can be accessed through Spotify Ads Manager. Hopefully this will make creating engaging adverts much easier and quicker, freeing up time for advertisers.
Spotify Creative Lab
A unique team of creators are in charge of collaborating with brands and ad agencies to create unique adverts. These ads are designed with the brand and target market in mind. The adverts are specific to Spotify and therefore won’t be found elsewhere.
These tools are the first of their kind in many ways. Spotify are known for their evolution, and this is why artists, listeners, podcasters and advertisers turn to their platform. They offer opportunities that their rivals don’t.
