Spotify is rolling out new advertising formats and tools to enable brands to reach listeners in more visual and interactive ways. The company said these updates include swipeable Carousel Ads in the Now Playing view, Sponsored Playlists with full brand placements, as well as split testing and automated bidding tools in Ads Manager.
Carousel Ads put multiple messages in front of listeners
Spotify is testing Carousel Ads in the U.S. and UK, which will appear in the Now Playing view. With Carousel Ads, brands can display up to six swipeable cards within a single ad. Each card can include its own image, destination link, and optional pricing details. This means one campaign can show multiple products, offers, or messages instead of relying on a single creative.
The format is triggered while the app is open and in focus, so the audience is actively engaged when the ad appears. Priceline is one of the early partners testing Carousel Ads.
Sponsored Playlists give brands full share of voice
Spotify is also updating Sponsored Playlists. Brands can now take full control of the ad experience within selected playlists, including well-known ones like RapCaviar, New Music Friday, and Today’s Top Hits. This means a single brand can own 100 percent of the ad placements during a listening session tied to that playlist.
Advertisers can also provide a limited ad experience for listeners that lasts only for the duration of the playlist. Spotify told The Keyword that this format is meant to align brands with moments when users are already engaged.
New tools in Ads Manager
Spotify has also introduced two new updates to Ads Manager. Split testing lets marketers run multiple versions of a creative and measure performance using metrics like completion rate, click-through rate, video view expand rate, cost per click, and cost per acquisition. Advertisers can now test different visuals, calls to action, or video elements and see results across key performance metrics.
The platform also added an automated bidding tool, which uses machine learning to adjust bids in real time according to market conditions. This format is intended to enable advertisers to spend their full campaign budget without constant manual adjustments.
For example, if competition for a particular ad slot increases during peak listening hours, the automated bid could adjust to maintain placement without overspending. Conversely, if demand is low, it can reduce bids to preserve the budget.
Spotify points to a shift toward intentional audio
Alongside the product updates, Spotify released new research it calls the “Sound-On Era.” The report looks at how streaming, AI, and connected devices are changing how people interact with audio.
According to Spotify, users are not just passively listening. They are selecting playlists, watching video podcasts, discovering artists, and interacting with features like DJ. The research draws on responses from more than 5,000 consumers, over 100 advertisers, and 30 experts.
Brian Berner, Global Head of Advertising at Spotify, told The Keyword that listener behavior has shifted toward more active engagement, which changes how brands can show up on the platform.
“Spotify has evolved into an immersive, multiformat platform where culture and brands can intertwine, helping them move from simply being heard to becoming a part of the fan experience,” he said.
What this means for advertisers
These updates show how Spotify is positioning its ad platform around both engagement and measurement. Carousel Ads introduce a more visual, multi-message format inside a listening session, while Sponsored Playlists focus on sustained brand presence within curated content. At the same time, tools like split testing and automated bidding give advertisers more data and control over how campaigns perform.
Spotify has been gradually expanding its ad ecosystem over the past few years, aiming tobecome a full-stack ad platform for advertisers. The company previously launched the Spotify Ad Exchange to allow programmatic buying through partners like The Trade Desk & Google DV360. More recently, it partnered with Amazon and Yahoo to expand programmatic ad reach. Its self-serve platform was rebranded as Ads Manager in 2024, and measurement tools were enhanced to attract marketers.
These new tools continue that direction by combining format expansion with performance tools.
Recap
What new ad formats is Spotify rolling out?
Spotify is introducing swipeable Carousel Ads in the Now Playing view and updated Sponsored Playlists that let brands own 100% of the ad space on selected playlists.
How do Carousel Ads work?
Carousel Ads allow brands to display up to six swipeable cards within a single ad, each with its own image, link, and optional pricing. The ad appears while the Spotify app is open and in focus, so listeners are actively engaged when they see it.
What’s new with Sponsored Playlists?
Spotify now lets brands take full control of ad placements within selected playlists, including RapCaviar, New Music Friday, and Today’s Top Hits. Advertisers can also offer a limited ad experience that lasts only for the duration of the playlist.
