Spotify announced Thursday that it is moving into the advertising space with its first in-house creative agency called Creative Lab, to help brands create personalized marketing campaigns. The company said it will also begin testing generative AI advertising.
The launch of the Creative Lab shows that Spotify is ramping up its efforts to attract advertisers to the platform. This is potentially an attractive proposition for marketers, as they will be able to reach Spotify’s 615 million listeners.
Additionally, Spotify is working on a new AI tool for advertisers: “Quick Audio,” which enables brands to create text and voiceovers using generative AI. A company spokesperson told us that the tool will launch soon in Spotify Ad Managers.
A Spotify executive previously said the company was looking to use artificial intelligence to create host-read ads for podcast creators.
The spokesperson told TechCrunch that brands will be able to work with the new Creative Lab team to produce things like video and audio ads, in-app digital experiences, and other interactive ad formats like call-to-action (CTA) cards.
“Each Creative Lab campaign is highly customized to fit each brand and specific business need,” the spokesperson said.
Using Rockstar Energy Drink client Spotify as an example, it launched a live-streamed concert series on the music streaming app’s Press Play, featuring artists such as British rapper Stormzy. Another beverage company, Aperol, will also be a Creative Lab client.