Spotify to Launch Own Ad Exchange
The ad exchange will allow Spotify to capture more ad revenue from small and medium-sized businesses and make it easier for existing clients to spend more efficiently with the platform.
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Spotify has been reported to launch its own ad exchange, known internally as Spotify Ad Exchange or SAX. For this, the popular audio streaming service has tapped The Trade Desk as its first demand-side platform (DSP) partner.
According to media reports, this ad exchange will allow Spotify to capture more ad revenue from small and medium-sized businesses and make it easier for existing clients, including big brands, to spend more efficiently with the platform.
It will also allow Spotify to compete against bigger platforms like Meta and Google for ad dollars.
Moreover, it has been reported that Spotify began testing its SSP plugin with The Trade Desk last week. For now, the partnership is focused on connecting The Trade Desk’s North American advertising clients to Spotify’s video ad inventory. Audio ad inventory will soon follow.
A Spotify spokesperson has confirmed it was testing its new SSP with The Trade Desk, stating, “We routinely conduct pilots before launching products for our users, creators and advertisers.”
Meanwhile, a spokesperson for The Trade Desk commented, “We are excited to extend our partnership with Spotify on this pilot to help advertisers have direct access to high-quality inventory with as much signal and transparency as possible.”
