Spotify is reportedly planning to increase its advertising in an attempt to increase revenue.
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 and also offers an ad-free service to those who pay a subscription fee, but are now piloting an SSP, Spotify Ad Exchange (SAX), focused on video ads to scale its automated advertising solutions, according to a report by Axios.
One buyer told Digiday: "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. 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