Spotify is reportedly planning to increase its advertising in an attempt to increase revenue.
The streaming giant currently offers a free service to users who are willing to have commercials interrupt their music. It also offers an ad-free service to those who pay a subscription fee. Now Spotify is piloting an SSP, Spotify Ad Exchange (SAX), which is focused on video ads to scale its automated advertising solutions, according to a report by Axios.
“Being able to buy biddable audio inventory at scale is important for us and our clients, and has been somewhat challenging up to this point,” one buyer told Digiday. “Because The Trade Desk is a widely utilized platform by advertisers of all sizes, there should be a relative ease to testing this inventory, and I suspect that will help bring new advertisers to Spotify. This move also opens up additional measurement and audience insights, which will be attractive for new advertisers and should also help existing brands feel more comfortable in growing their investment.”
It is thought that the volume of advertising will put them in direct competition with the likes of Meta and Google.
