Spotify has launched the Spotify Ad Exchange in the Australian market following pilot programs in the Unites States and Canada. The new programmatic offering gives advertisers access to the audio streaming platform's user base via real-time auctions, complete with full addressability and measurement capabilities.

The inventory will be made accessible via major demand-side platforms (DSPs) including The Trade Desk, Google DV360, and Magnite, which already have access to Spotify's suite of audio, video, and display formats across music, with podcasts to join soon.

Head of Automation, JAPAC, at Spotify, Liam Hickey, said: "Through Spotify Ad Exchange, we’re evolving our platform to make advertising more automated, competitively priced, and addressable—putting outcome-based audio and the right formats at advertisers’ fingertips. At launch, we’re partnering with industry-leading DSPs like The Trade Desk and DV360, providing seamless access to high-quality inventory across music, with podcasts coming soon."

In addition to SAX, Spotify is enhancing its self-serve platform, Spotify Ads Manager, with advanced targeting options, new measurement solutions, and outcome-based objectives. This move is part of Spotify's broader strategy to support brands in adopting more outcomes-driven, omnichannel strategies.

"The advertising industry is rapidly shifting towards automation, with programmatic and self-serve platforms driving display and video ad spend. As Spotify continues to grow, we’re helping brands embrace more outcomes-driven, omnichannel strategies," said Hickey.

Spotify AUX, an in-house consultancy, has been introduced to connect brands with music, podcasts, culture, and content production. This consultancy aims to leverage Spotify's extensive reach and influence in the audio and cultural landscape to provide brands with unique opportunities for engagement.

The company is also rolling out new measurement tools, including updates to Spotify Brand Lift and partnerships with measurement firms such as Doubleverify and IAS. These enhancements are designed to provide advertisers with more robust measurement capabilities, ensuring that their campaigns are effectively reaching and engaging their target audiences.

Spotify has reported its first full year of profitability, with a 20% year-over-year revenue growth. The company's advertising revenue has surged by 141% since 2020, largely driven by brand advertising. Spotify's global reach extends to 675 million users across 184 markets, with over 90% of users considering the platform essential to their daily lives.

The combination of audio and video ads on Spotify has been shown to increase purchase intent by 27% and incremental sales by 66% compared to audio-only ads.