Spotify on Thursday announced it is expanding further into advertising by launching its first in-house creative agency, Creative Lab, to help brands create custom marketing campaigns, and the company said it will also begin testing generative AI ads.
The launch of Creative Lab signals Spotify's increased efforts to attract advertisers to its platform, which could be an attractive offering for marketers because it can reach Spotify's 615 million listeners.
Additionally, Spotify is working on a new AI tool for advertisers, “Quick Audio,” that will allow brands to create scripts and narrations using generative AI. A company spokesperson said the tool will be released in Spotify Ads Managers soon.
Image credit: Spotify
Spotify executives have previously said the company is looking into using AI to generate host-read ads for podcasters.
A spokesperson told TechCrunch that brands will be able to work with the new Creative Lab team to create video and audio ads, in-app digital experiences and interactive ad formats like call-to-action cards.
“Every campaign that Creative Lab creates is highly customised to suit each brand and business need,” the spokesperson said.
Spotify cites client Rockstar Energy Drink as an example, which launched a “Press Play” livestreaming concert series within the music streaming app, featuring artists such as British rapper Stormzy. Another beverage company, Aperol, will also be a Creative Lab client.