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Spotify Launches Ad Exchange and Generative AI Ads in India, Unlocking Real-Time Access to Logged-in Users

Spotify introduces Spotify Ad Exchange (SAX) and AI-powered audio ads in India, enabling advertisers to reach engaged users via real-time bidding and create instant, customised ads.

Pragati Chougule

Spotify has officially launched its Spotify Ad Exchange (SAX) and Generative AI Ads in India, marking a significant advancement in the country’s digital advertising landscape. This launch follows a successful global rollout and pilot programs in the US and Canada, now bringing Indian advertisers real-time programmatic access to Spotify’s highly engaged, logged-in user base.

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Know With TBC: What is Spotify Ad Exchange (SAX)?

SAX is a programmatic ad-buying platform that allows advertisers to bid in real-time for audio, video, and display ad slots on Spotify. Integrated with major demand-side platforms (DSPs) such as Google Display & Video 360, The Trade Desk, and Magnite, SAX offers full addressability and measurable performance tracking. Advertisers can efficiently target Spotify’s audience, optimizing reach and reducing ad fatigue through unified frequency management.

An internal analysis of over 350 campaigns revealed that incorporating Spotify programmatically led to an average incremental reach increase of 11.5% without additional media spend, highlighting the platform’s effectiveness in maximizing unique audience engagement.

Alongside SAX, Spotify has introduced Generative AI Ads within its Ads Manager platform. This innovative tool enables advertisers and agencies to instantly create high-quality audio ads, including scripts, voiceovers, and licensed background music,at no extra cost. The AI-powered feature drastically reduces ad creation time from days to minutes, allowing brands of all sizes to launch scalable, customized audio campaigns tailored specifically for Spotify’s platform.

Arjun Kolady, Head of Sales (India) at Spotify, emphasized the goal of making SAX accessible to all programmatic players in India, facilitating seamless integration into ongoing audience strategies. With India being one of Spotify’s top five markets by user base, this launch is a key part of the company’s expansion strategy. Podcast ads are expected to be added soon, further broadening advertising opportunities on Spotify.

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