Focusing on video advertisements first, Spotify (SPOT, Financials) is introducing a supply-side platform dubbed Spotify Ad Exchange to grow its automated advertising offerings. Axios said the platform would let Spotify boost ad spending efficiency for bigger brands and raise its income from small- and medium-sized companies.
The Trade Desk (TTD, Financials), which started testing Spotify this week, Axios observed is the first demand-side platform partner for Spotify. First focusing on The Trade Desk's North American customers, the collaboration links them with Spotify's video ad inventory. Axios predicts that inventory of audio ads will follow.
Additionally, Axios said that Spotify will adopt OpenPath, a tool The Trade Desk utilizes to provide direct access to the ad inventory of premium publishers. Spotify will also join Universal ID 2.0, a cookie-less ad-targeting system, Axios said in its report.
Axios reports that a Spotify spokesman acknowledged the testing stage of the supply-side platform. "We routinely conduct pilots before launching products for our users, creators and advertisers," the spokesman said, Axios added. A representative of The Trade Desk also confirmed the alliance in a statement to Axios.
Part of Spotify's larger attempt to develop automated ad services, Axios observed, is its entry into the ad exchange market. Thus far, Spotify has mostly provided programmatic ad solutions via its sales staff.
