Amplifying digital audio ads using data and AI to optimize the media mix
A $750B opportunity poised for growth
Digital audio commands a significant amount of time in our daily lives. In 2024, American adults spent an average of two hours and 42 minutes each day listening to audio, half of it on digital audio platforms. Yet advertising in this space has been underutilized. Accenture research estimates that in a $750 billion digital ad market, only 1.5% of spend is being driven by digital audio.
With over 200 million digital audio listeners in the U.S., there’s a significant growth opportunity for advertisers to take advantage of this medium. Spotify’s collaboration with Accenture – one that is getting advertiser campaigns to market 40% faster - is helping brands take advantage of this opportunity.
Spotify is one of the biggest players in this space, with over 678M global users who spend an average of 2 hours daily on the platform. They also feel 15% happier streaming audio than they do spending time on social media, and this positive engagement extends to advertising, where Spotify's video ads drive 2x more attention than social media ads.
Spotify Advertising allows brands to reach a highly engaged audience through a variety of multiformat solutions and ad buying channels like Spotify Ads Exchange and Ads Manager.
Since 2018, they’ve been partnering with Accenture as their advertising operations partner to build and scale their business from 20 to over 150 ad markets.
We infused automation across operational workflows to significantly reduce the time and effort to launch advertiser campaigns and get them to market 40% faster. This has reduced ad trafficking time to just 24 hours while helping ensure revenue realization and advertiser satisfaction.
What Spotify achieved:
ad market expansion
faster time to market
hours to traffic ad campaigns
Spotify is now making it easier than ever for advertisers to create high-quality, scalable audio ads with gen AI that breaks through the noise and drives outperforming ROI.
With Spotify’s smarter tech stack, advertisers can now incorporate video, display, and gen-AI-powered audio production tools to create and launch ads rapidly and cost effectively, leveraging moments that are uniquely relevant to their audiences, such as a movie, concert or trending topic.
When audio ads are paired with video, the real magic happens:
Increase in customer purchase intent
increase in incremental sales compared to audio alone
higher conversion rate than audio industry benchmarks
Source: Spotify First Party Data, What We Know Research, Global, 2024
But it’s not just about boosting the ad creation experience; it’s also about enhancing ad measurement, performance, and optimization.
Spotify continues to evolve its measurement solutions to evaluate more objectives across the marketing funnel.
Accenture is also partnering with Spotify to create Insights Studio—a scalable service that provides more insights to their sales team through dashboarding, reporting, and market analysis.
Streaming smarter ad growth
By using gen AI to attract new advertisers, Spotify can accelerate the growth of its ads business, enabling brands to show up where consumers spend a significant portion of their online lives, and at a lower cost of entry. Together, we’re harnessing the potential of human creativity and scaling innovation like never before.
What's trending in digital advertising
Meet the team
Kevan Yalowitz
Senior Managing Director – Software & Platforms, Global Lead
Frances Fisher
Managing Director
Joshua Cullnan
Managing Director