Spotify announced the establishment of its first in-house creative agency, Creative Lab, and began testing generative AI advertising, aiming to attract more advertisers and make full use of its huge 615 million listener base. This move marks Spotify's strategic upgrade in its advertising business. By providing customized marketing services and AI tools, it will improve the efficiency and effectiveness of advertising, thereby enhancing its competitiveness in the music streaming market. Creative Lab will provide brands with highly customized video, audio advertising and interactive advertising experiences, and launch a new AI tool "Quick Audio" to assist advertisers in creating scripts and dubbing, further lowering the threshold for advertising production.
Music streaming giant Spotify announced the establishment of its first in-house creative agency, Creative Lab, to help brands customize marketing campaigns and begin testing generative AI advertising. The move shows Spotify is increasing its efforts to attract advertisers, which may be attracted by the ability to reach Spotify's 615 million listeners.
Image source: Spotify
Additionally, Spotify is working on a new AI tool, "Quick Audio," to help advertisers create scripts and voiceovers using generative AI. A company spokesperson revealed that the tool will soon be available in the Spotify ad management platform.
Spotify has said earlier that it hopes to use AI to create ads read by hosts for podcasts. Brands can work with the newly formed Creative Lab team to create video and audio ads, in-app digital experiences, and other interactive ad formats such as call-to-action cards. A company spokesman said: "Every campaign Creative Lab engages in is highly customized to meet specific brand and business needs."
Spotify cited customer Rockstar Energy Drink as an example. The brand launched the "Press Play" live concert series within the music streaming app, inviting artists such as British rapper Stormzy. Another beverage company, Aperol, will also become a Creative Lab client.
Through the application of Creative Lab and AI tools, Spotify is actively expanding its advertising business, providing advertisers with more creative and efficient marketing solutions, and further consolidating its leading position in the music streaming field. This indicates that the in-depth integration of music streaming platforms and advertising marketing will be closer in the future.