Spotify fired a massive shot across radio’s bow this week with the launch of powerful new tools that make it ridiculously easy for small businesses to run targeted ads — not only on Spotify but also across other digital music platforms.
Here’s what they rolled out:
* Spotify Ad Exchange: Advertisers can now run the same creative across multiple programmatic audio platforms—using The Trade Desk, Google, Yahoo, and more. Right now, ad placements are limited to music content (which could theoretically include terrestrial stations’ webstreams), but podcast inventory will also be available later this year.
* Advanced Analytics and Attribution: Advertisers can specify their campaigns’ objectives and have quantitative data showing their campaigns’ efficacy. Spotify is using first-in-class partners such as DoubleVerify, LiveRamp, and TTD’s UID2 to get clear performance data.
* AI-Generated Commercials: Advertisers can instantly generate audio spots—complete with music, voice, and tone—at no cost. No more submitting scripts or uploading MP3s. [At the bottom of this email is a link to an example spot.]
Before this update, small businesses had to jump through hoops to produce and place a Spotify ad. Now, the process is nearly frictionless—and that’s a major threat to local radio.
Let’s take a look at how easy it is to create a commercial on Spotify’s new system.
How to Make a Commercial Using Spotify’s New AI Tool
1. In the Spotify Ad Manager, create a new campaign and select your campaign objective.
2. Select your Ad Category, Targeting (Geography, Demographic, Interest), Run Dates, and Budget
3. Select “Make Your Own”
4. Add a message, keywords, and positive and negative keywords, then click “generate” for the tool to compose a script.
5. Edit the copy output
6. Choose a voice and tone
7. Add background music
8. Add to your campaign and run.
Take a listen to the recruitment commercial for a fictional trade union I created in under ten minutes. Impressive.
Why This Matters
Advertisers—especially small and mid-sized businesses—are cutting back on account reps and leaning into self-serve ad platforms. Until now, production was a major roadblock for audio and video advertising. Spotify just bulldozed that barrier.
Many broadcasters are already using AI tools to create spec spots, and the most successful ad reps are using these tools during their client visits. Those who aren’t? It’s time to catch up. The competition just raised the bar—and radio’s advertisers will notice.
Originally published by Jacobs Media
