Spotify debuts an in-house agency to help brands capitalize on its audience

Spotify is making a big push into the advertising space with the launch of its first-ever in-house creative agency, called Creative Lab. This new initiative will see Spotify collaborating with brands and agencies to craft custom marketing campaigns that leverage the unique strengths of the audio streaming platform.

A tailored approach for advertisers

Creative Lab will offer a dedicated team of specialists across 11 markets, including the US, India, and major European territories. These regional teams will provide brands with localized insights and collaborate to develop campaigns through workshops, brainstorming sessions, and bespoke creative development. “Creative Lab can offer advertisers a way to reach the premium audience, such as through podcasts and live events,” said Brian Berner, Spotify’s Global Head of Sales, to Business Insider.

Spotify aims to become a top advertising destination

Spotify’s ambition is to become a prominent player in the advertising market. The platform boasts a massive user base of 615 million, with listeners averaging a significant 2.4 hours daily on the app. “Spotify is unique because you reach listeners at various touchpoints throughout their day,” said Brian Berner, Spotify’s Global Head of Sales. “They’re engaged, one-on-one, and receptive to messaging, unlike other platforms where users are bombarded with information overload.”

Exploring generative AI for audio ads

Adding to its advertising push, Spotify also revealed it’s in the early stages of testing a generative AI tool called “Quick Audio.” According to the platform, this tool will allow brands to leverage AI to create scripts and voiceovers for their audio ads directly within Spotify Ads Manager.

While advertising currently represents a smaller portion of Spotify’s revenue compared to its premium subscription tier, the company is witnessing promising growth in the ad-supported sector, thanks to a rise in ad pricing and the ongoing expansion of Spotify’s content library beyond music.