Spotify is testing a new supply-side platform called Spotify Ad Exchange (SAX), aimed at enhancing its automated advertising services. According to Axios, the platform will allow Spotify to improve ad spending efficiency for larger brands and increase revenue from small- and medium-sized businesses.
The Trade Desk, a digital marketing and online advertising company, is the first demand-side platform partner in this initiative. The collaboration, which started this week, connects The Trade Desk’s North American clients with Spotify’s video ad inventory. Axios also noted that Spotify plans to include audio ad inventory in the future.
Spotify will integrate The Trade Desk’s OpenPath tool, which provides direct access to the ad inventory of premium publishers. Additionally, Spotify will join Universal ID 2.0, a cookie-less ad-targeting system developed by The Trade Desk.
A Spotify spokesperson confirmed to Axios that the platform is currently in its pilot phase, stating, “We routinely conduct pilots before launching products for our users, creators, and advertisers.” A representative from The Trade Desk also acknowledged the partnership and expressed optimism about providing advertisers with better access to Spotify’s ad inventory.
Spotify’s move into the ad exchange market is part of its broader effort to expand automated ad services, Axios reported. Historically, Spotify has provided programmatic ad solutions primarily through its sales team.