TechCheck

Spotify’s AI advertising potential 7/28/25

Jul 29, 2025
Spotify is eyeing AI as a boost for user engagement, but it may come with unexpected challenges. The discussion highlights the struggle with ad revenue and how AI could transform the advertising landscape. However, the technology isn’t without its threats, especially regarding copyright issues in the music industry. It’s a compelling look at the balance between innovation and the potential pitfalls that could arise.
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ADVICE

Use AI to Grow Ads

  • Deploy AI to improve ad creation, targeting, and measurement like Meta and Alphabet.
  • Accelerate automation efforts to build a stronger, sustainable ads business.
INSIGHT

Spotify's AI Double-Edged Sword

  • Spotify's ad revenue is declining despite AI helping with user engagement.
  • AI is a double-edged sword, boosting usage but not yet driving ad growth sufficiently.
INSIGHT

AI Boosts Spotify Engagement

  • Spotify's AI DJ feature doubled engagement in a year.
  • AI playlists have become a valuable feature enhancing user experience.
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