Spotify's Audio Ad Evolution

Spotify wants advertisers to use generative AI to create audio ads


Spotify CEO Daniel Ek hinted at using a generative AI to produce podcast summaries and audio ads that can increase the user experience and efficiency.


Spotify is looking at new ways to utilize AI for its platform following the popularity of DJ, a generative AI feature that produces personalized playlists based on listening patterns. During the company’s second-quarter earnings conference call, Spotify’s CEO Daniel Ek hinted at some possibilities for AI features that could increase the efficiency and engagement of users.

One of the potential applications of generative AI is the creation of summaries of podcasts that can assist users in finding new shows that fit their preferences. This could also benefit podcast creators by increasing their exposure and growth.


Another area where generative AI can aid Spotify is the development of audio advertisements. Ek stated that using AI to create audio ads could drastically reduce the cost and time required for advertisers to develop new formats.

“By using generative AI and our tools here, I think you’re going to be able to see that we can significantly reduce the cost it takes for advertisers to develop new ad formats,” Ek explained. “And that means that you, as an advertiser, instead of having one ad, you can imagine having thousands and tested across the Spotify networks, things that you could easily do today using text but haven’t been able to do over video or audio.”


These comments coincide with these remarks and align with Spotify’s patent describing an artificial intelligence-powered “text-to-speech synthesis” system that was announced on July 20. The patent describes a technology that converts text into a human-like voice with intention and emotion. This suggests Spotify is looking to develop an option that is more sophisticated than a DJ who can only say a few words between songs. The speech synthesis technology may help Spotify remove the requirement to use human dubbing in audiobooks or replace that with artificially generated speech.

In the earnings conference, it was disclosed the fact that Spotify is home to 220 million pay users across the globe. This is an increase of 17% over the previous year. Spotify currently has 551 million active monthly users.


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