Earlier this week, Spotify confirmed it is piloting its own ad exchange or supply-side platform to enhance its revenue margins further as it turns a profit for the first time.
Spotify is piloting an SSP, Spotify Ad Exchange (SAX), focused on video ads to scale its automated advertising solutions, according to an Oct. 22 Axios report.
By building its own exchange, Spotify aims to capture more revenue from small and medium-sized businesses to allow existing clients to spend more efficiently, making it more competitive with platforms like Meta and Google, with The Trade Desk operating as its beta demand-side platform partner. As part of the tie-up, Spotify will also sign up for The Trade Desk’s Universal ID 2.0, the DSP’s gambit in helping to usher the ad tech ecosystem into becoming a cookie-less ad-targeting system.
Continue reading this article on digiday.com. Sign up for Digiday newsletters to get the latest on media, marketing and the future of TV.