Spotify is working with The Trade Desk to launch its first ad exchange, 'Spotify Ad Exchange,' Axios reports. The platform began testing its SSP plugin with The Trade Desk last week. 

Spotify Ad Exchange (SAX)

SAX, Spotify's new supply-side platform (SSP), aims to improve its automated ad solutions. This platform lets advertisers access Spotify's inventory. It does this via integration with demand-side platforms (DSPs). This is a shift away from relying on third-party SSPs. SAX will focus on video ads and will add audio options in the future.

Spotify has been testing SAX as a supply-side platform (SSP). It aims to scale its automated ad offerings. The partnership will connect North American advertisers to Spotify's video ads.

The shift toward automated advertising solutions

Spotify's move to implement its SSP responds to the need for automated ad solutions. JJeff Green, Founder of The Trade Desk, stressed the value of digital audio. It's a fast-growing ad channel. He said, "Digital Audio might be the most on-sale corner of the internet. The time spent to ad spend ratio has the highest disparity of any channel."  “we're extremely excited that we're expanding our partnership with Spotify,” he added. 

As part of the collaboration, Spotify will use The Trade Desk's OpenPath tech to speed up connections between ad inventory and advertisers. It will also join Universal ID 2.0 (UID 2.0), a privacy-safe framework for ad targeting that doesn't rely on cookies.