Next in Media: Can Spotify Become a Bigger (Video) Ad Player?
Hosted by Mike Shields | Released June 24, 2025
In this episode of Next in Media, host Mike Shields engages in an insightful conversation with Chloe Wicks, the Global Director of Monetization Product Marketing at Spotify. The discussion delves into Spotify's evolving role in the advertising landscape, particularly focusing on its expansion into video advertising and the integration of advanced technologies like artificial intelligence (AI) to enhance ad delivery and creation.
1. Introduction to Spotify's Advertising Evolution
Mike Shields opens the discussion by highlighting the anticipation surrounding Spotify's advertising strategies. Initially perceived as a subscription-centric platform, Spotify's foray into advertising signifies a strategic shift.
- Mike Shields [01:30]: "People were always interested in Spotify's thinking on advertising. Early on, the anticipation was you're gonna be a subscription business. For the most part, advertising will fit in and definitely seems to be changing."
Chloe Wicks emphasizes Spotify's core mission to empower creators and how both premium subscriptions and advertising are integral to supporting artists, podcasters, and other creators.
- Chloe Wicks [01:56]: "Spotify is a platform for creators first and foremost. The premium subscription service and the advertising business are both really meaningful parts of us furthering that mission."
2. Transitioning from Audio to Video Advertising
The conversation shifts to Spotify's strategic move from being primarily an audio platform to integrating video content, especially in podcasting.
- Chloe Wicks [03:09]: "We can have that [focus on audio], but you can be bigger, correct? Exactly right. We feel so fortunate because when you own the background, you have this opportunity."
Spotify recognizes the deep relationships listeners form with podcasters and sees video podcasting as a natural extension to enhance audience engagement.
- Chloe Wicks [03:26]: "From there there's this innate desire to really understand on a deeper level who that person... That was really the catalyst to a lot of engagement with video podcasting overall."
3. Enhancing User and Creator Experience with Video
Mike Shields probes into how Spotify manages the dual role of being a background medium while also promoting video content.
- Chloe Wicks [04:28]: "For creators, there's no question that having video as a part of the choice that we give users when it comes to listening versus watching is an obvious one."
Spotify aims to simplify video integration for creators and redefine traditional media planning for advertisers by providing comprehensive data and seamless tools.
- Chloe Wicks [05:29]: "...giving them the data and the stats to make sure that they understand the prevalence of viewing in addition to listening on Spotify."
4. The Rise of Video Podcasting and Brand Partnerships
The discussion highlights the increasing trend of video podcasting and how brands are leveraging this medium for deeper engagement with audiences.
- Chloe Wicks [05:48]: "We are probably doing more of those annual style plans than we ever have before... the introduction of baked-in ads within video podcasting suite."
Spotify facilitates both standard and native advertising opportunities within video podcasts, fostering authentic relationships between brands and creators.
5. Automating Advertising Processes with AI
Mike Shields raises concerns about the complexity of managing numerous brand deals, questioning the potential for automation.
- Chloe Wicks [06:55]: "Automation is the number one goal that we have on the advertising side when it comes to technology."
Spotify addresses this by launching tools like Spotify Ad Exchange and Ads Manager, which integrate programmatic advertising and offer self-serve options for brands, respectively.
- Chloe Wicks [07:48]: "Our Spotify Ad Exchange... and our ads manager tool... allow folks to enter into the world of podcast advertising at a much lower cost."
6. Advancements in Measurement and Analytics
Effective measurement is crucial for advertisers, and Spotify is investing in robust analytics to meet these needs.
- Chloe Wicks [08:32]: "We need to offer a robust set of first-party tools... and also really deep third-party partnerships."
Spotify collaborates with industry leaders like Claritas and Podscribe to enhance measurement capabilities, ensuring advertisers can accurately assess campaign performance.
7. Leveraging AI for Enhanced Ad Delivery and Creation
The integration of AI plays a pivotal role in Spotify's advertising strategy, both in delivering targeted ads and facilitating creative processes.
- Chloe Wicks [09:34]: "AI powered ad delivery... allowing ads to be delivered to the people who are more likely to take a certain action."
Spotify also introduces the Gen AI Audio tool, which enables users to create customized audio ads swiftly and efficiently.
- Chloe Wicks [10:12]: "It takes about 17 minutes for a given user to create an ad, which is pretty incredible."
8. Future Prospects: From Audio to Video AI Tools
Looking ahead, while Spotify is currently focused on audio, there's potential interest in expanding AI tools to support video advertising, aligning with industry trends.
- Chloe Wicks [11:19]: "For now, we are focused in the world of audio, given how unique and innate that is to Spotify."
9. Integrating Recommendation Algorithms with Advertising
Spotify's renowned recommendation algorithms are leveraged to enhance ad targeting, ensuring relevance and effectiveness.
- Chloe Wicks [11:48]: "Artist affinity... allows advertisers to reach fans of certain artists or genres in a very explicit way."
The same AI engines that power content recommendations also optimize ad delivery based on user behavior and preferences.
10. Client Feedback and Enthusiasm for AI Innovations
Clients express significant interest in Spotify's AI-driven tools, seeking partnerships and efficient advertising solutions.
- Chloe Wicks [12:56]: "Everyone wants to know what we're doing in AI... making it as easy as possible to create an audio ad."
Spotify's focus on automation and AI fosters trust and enthusiasm among advertisers, enabling them to test and iterate efficiently.
Conclusion
The episode concludes with Mike Shields appreciating Chloe Wicks for her insights, highlighting Spotify's strategic advancements in becoming a more formidable player in the video advertising space through technology and data-driven solutions.
- Mike Shields [14:00]: "Awesome stuff. Chloe, thanks so much for your time here."
Chloe Wicks echoes the sentiment, reaffirming Spotify's commitment to innovation in advertising.
- Chloe Wicks [14:02]: "Awesome. Thank you for having me."
This episode provides a comprehensive look into Spotify's multifaceted approach to advertising, underscored by a commitment to supporting creators, leveraging AI for enhanced ad strategies, and expanding into video to meet the evolving demands of brands and audiences.