The news: Spotify’s push into programmatic ad buying is moving audio beyond the manual sponsorship model that’s long defined the medium. Spotify Ad Exchange has seen a 60% surge in advertiser adoption since its debut this past spring, global head of product and commercial growth Chloe Wix said in an EMARKETER interview.
The company has also expanded demand-side platform access, adding Google DV360 and Magnite to its initial partnership with The Trade Desk, allowing brands to reach Spotify podcast inventory across multiple DSPs via a single integration.
Despite these upgrades, CEO Daniel Ek acknowledged in the company’s Q2 earnings call that execution of its ad plans needs to catch up with its vision.
Why it matters: Podcast advertising has historically been constrained by one-to-one sponsorship deals, limiting reach and revenues. “There’s only so much scale and volume you can achieve when you’re going from one advertiser to one creator,” Wix noted. Programmatic changes that dynamic—giving advertisers broader access and creators more monetization streams.
This comes as podcast ad spending worldwide will reach $5.5 billion by 2026, though YoY growth is slowing. Spotify’s move positions it to capture more of that spend while addressing fragmentation that’s frustrated advertisers.