The news: Spotify announced two new ad formats Tuesday as part of its broader effort to grow its ads business beyond audio-only formats.

• The company is testing interactive carousel ads, a multi-card, swipeable format available in the Spotify Now Playing view. Advertisers gain access to up to six cards with links, images, and pricing details.
• Spotify also reinvented its Sponsored Playlists feature to give brands a 100% share of voice on Spotify’s top playlists. Marketers can ensure they are the only brand featured and will have access to more immersive, visual ad placements.
• The announcement also outlined two new tools in Spotify Ads Manager: Automated bid, which adjusts bids based on market conditions, and split testing, which allows advertisers to test different creative elements and assess results across video view expand rate, cost-per-click, cost-per-acquisition, completion rate, and clickthrough rate (CTR).

By the numbers: Spotify paired the rollout with new research meant to show advertisers that its audience is attentive, trusting, and increasingly receptive to interactive audio experiences.

• Time spent with Spotify has increased 26% YoY since updating its Free mobile experience in 2025; in-focus time is up 18% for ad-supported users, per a Spotify spokesperson. This is translating into better ad performance: In-stream video and audio ads have seen a 14% increase in CTRs.
• Audiences are 36% more likely to trust music or podcast ads than social media ads; 80% of advertisers agree that audio ads offer heightened trust compared with other digital media.
• 92% of US consumers pause other online activity to stream audio, while 70% of advertisers state that audio captures focused attention more effectively than social media.
• Half of consumers find voice-driven brand interaction—such as verbally instructing a platform to add an item to cart—appealing, while 85% of advertisers say interactive, conversational audio is the future of advertising.

Zooming out: Spotify has gradually expanded its ad capabilities as it seeks new, innovative options to draw attention from competitors. While its ad revenues show consistent growth, platforms like YouTube have slowly siphoned user attention from Spotify in areas like podcasts.