Spotify has launched the Spotify Ads Exchange (SAX), a significant enhancement to its advertising platform that integrates artificial intelligence.

Wall Street analysts predict a 15.87% upside for Spotify's stock, setting an average price target of $651.77, reflecting confidence in the company's growth trajectory.

The company is marketing itself to advertisers by providing 'nutritional' ad experiences, focusing on quality and effectiveness in advertising campaigns.

Spotify's Ads Manager has been upgraded with enhanced targeting and measurement options, including new first-party and third-party measurement solutions to support diverse advertising campaigns.

The updates aim to enhance advertiser capabilities and connect with Spotify's extensive user base, which includes over 251 million Gen Z users who actively engage with the platform.

Spotify is fostering creative collaboration through its Creative Lab and AUX consultancy, partnering with brands like Visa, Kona Big Wave, and Coca-Cola to craft unique advertising campaigns.

These announcements follow Spotify's most profitable year in its 18-year history, indicating a strong momentum as it evolves from a premium audio service to a comprehensive media platform.

This new service will be available in key markets, including the United States, Canada, Europe, Australia, New Zealand, India, Singapore, Brazil, and Mexico.

SAX allows advertisers to utilize a variety of audio, video, and display ad formats across major global markets, making it a versatile tool for brand engagement.

Spotify claims that free users spend an average of two hours daily on the platform, highlighting its potential as a valuable space for brands to connect with audiences.

A recent survey indicated that 71% of Gen Z users view Spotify positively, referring to it as an 'antidote to doomscrolling,' which underscores its appeal among younger audiences.

New measurement tools have been introduced to help connect ads with users likely to download specific apps or visit certain websites, improving campaign impact.