The company said Thursday it is diving further into the ad space with its first in-house creative agency called Creative Lab, one that would help brands create custom marketing campaigns. It also said it would start testing generative AI ads.

With the launch of Creative Lab, one can see how much more Spotify is actively trying to attract advertisers to the platform. This must be rather an interesting offer for marketers: they will reach all 615 million listeners of Spotify.

The platform is also working on a new AI tool for advertisers. "Quick Audio" lets brands compose scripts and voiceovers by using generative AI. A company spokesperson told us that the tool will roll out in Spotify Ads Managers shortly.
Earlier, a Spotify exec said the company plans to use AI for generating host-read ads for podcasters.

The company spokesperson said that such new Creative Lab team would enable the company to work directly with brands, enabling them to produce things such as video and audio ads, in-app digital experiences, and other interactive ad formats, including call-to-action cards.
"The campaigns they touch have been highly customized to specific brands and business needs," said the company spokesperson.

One example used is client Rockstar Energy Drink, which initiated a "Press Play" livestreamed concert series inside the music streaming app, featuring British rapper Stormzy as one of its performers. Another beverage company, Aperol, will also be part of Creative Lab.