Spotify has announced a major upgrade to its advertising offerings in Australia, introducing a new programmatic solution and a range of enhancements designed to streamline how advertisers buy, create, and measure campaigns on the platform.
At the heart of the update is the launch of Spotify Ad Exchange (SAX), a programmatic marketplace that allows advertisers to reach Spotify’s logged-in users through real-time auctions. The exchange supports full addressability and measurement capabilities, offering greater flexibility and transparency in media buying.
Following a successful pilot in the US, Canada, and Australia, SAX is now available to local advertisers through leading demand-side platforms (DSPs) such as The Trade Desk and Google’s Display & Video 360. The exchange provides access to Spotify’s full suite of audio, video, and display formats across music, with podcast inventory set to be added soon.
This move reflects the broader industry trend towards automation and outcome-based strategies. Spotify’s Head of Automation for JAPAC, Liam Hickey, emphasised the company’s commitment to supporting brands with omni-channel solutions that align with evolving media habits.
“The advertising industry is rapidly shifting towards automation, with programmatic and self-serve platforms driving display and video ad spend. As Spotify continues to grow, we’re helping brands embrace more outcomes-driven, omnichannel strategies,” Hickey said.
“Through Spotify Ad Exchange, we’re evolving our platform to make advertising more automated, competitively priced, and addressable—putting outcome-based audio and the right formats at advertisers’ fingertips. At launch, we’re partnering with industry-leading DSPs like The Trade Desk and DV360, providing seamless access to high-quality inventory across music, with podcasts coming soon.”
In parallel, Spotify is continuing to evolve its self-serve Ads Manager platform with improved targeting, enhanced measurement tools, and outcome-driven campaign objectives. New features include Spotify Pixel, Custom Audiences, expanded third-party integrations, and a dedicated App Install objective.
Spotify is also investing in creative services through its in-house consultancy, Spotify AUX, which helps brands connect with audiences through music, culture, and content production. The division works closely with artists and creators to deliver bespoke, culturally resonant campaigns.
Measurement remains a key focus, with the platform rolling out updated tools such as Spotify Brand Lift and new partnerships with DoubleVerify and Integral Ad Science (IAS). Additionally, Spotify is incorporating identity solutions like Unified ID 2.0, LiveRamp’s RampID, and Google’s PAIR for more robust campaign tracking and attribution.
These advancements come during a period of strong global momentum for Spotify. The platform has achieved its first full year of profitability, with total revenues growing 20 per cent year-over-year. Since 2020, Spotify’s advertising revenue has increased by 141 per cent, driven largely by brand campaigns.
With a global user base of 675 million across 184 markets—and more than 90 per cent of users considering the platform essential to their daily lives—Spotify is positioning itself as a key player in the evolving digital advertising landscape. Internal data also shows that combining audio and video ads on Spotify can boost purchase intent by 27 per cent and generate a 66 per cent increase in incremental sales compared to audio-only campaigns.
The introduction of SAX and the expansion of its ad tech capabilities signal Spotify’s ongoing push to lead in the digital audio advertising space, offering brands the tools they need to drive measurable results at scale.
