(VOR News) – Spotify is now running a pilot trial for a new ad exchange in an effort to improve its capabilities in the area of automated advertising.
Their goal is to increase their capabilities in this area. In the beginning, the application will have a key emphasis on the sharing of films as its primary emphasis Through the implementation of this project, Spotify is attempting to make a strategic move in order to compete more effectively with larger platforms such as Meta and Google for advertising revenue.
This action is being taken in order to provide Spotify with an advantage over its competitors. Prior to this point in time, a substantial chunk of Spotify’s programmatic advertising solutions had been limited to programmatic direct transactions. This restriction was lifted. The circumstances had been like this up until this point in time.
These deals buy Spotify advertising through salespeople rather than auctioning it.
This is in contrast to the traditional method of purchasing advertising. Spotify plans to expand the variety of automated advertising options it provides by utilizing SAX and establishing agreements with a large number of other digital service providers.
This will allow Spotify to fulfill its goal of expanding its advertising options. To add insult to injury, this will be in addition to the initial partnership that the company created with The Trade Desk.
According to Axios, a number of insiders who are familiar with the effort have informed the journal that the platform hopes to ease the process of advertising expenditures for both small and medium-sized businesses as well as for existing clients, which may include well-known brands.
This information was provided by insiders. The insiders were the ones who shared this knowledge with us. The freshly built exchange is capable of being integrated into a wide range of demand-side platforms, which will make it simpler for advertisers to establish direct relationships with Spotify’s advertising inventory.
This is because the exchange was recently developed. Because of this, there will be a greater possibility that marketers will utilize the advertising inventory provides. When it comes to the Spotify Ad Exchange, which is also referred to as SAX, The Trade Desk is the first content delivery platform (DSP) partner that Spotify has ever had. February of this year marked the beginning of this cooperation to be developed.
At this point in time, the primary focus of the relationship is on the incorporation of The Trade Desk’s North American clients into the video ad inventory that Spotify offers. Because of this, the collaboration is of the utmost significance.
Plans are underway to add audio ads to Spotify’s partnership.
This matter is under consideration. One is considering this specific element. The link was tested for the first time the week before to last. It was rigorously tested.
In reaction to the continued success that YouTube has had in stealing the audience for the podcasts that are supplied by Spotify, the streaming service has been making attempts to improve the quality of the videos that it provides. This is a response to the fact that YouTube has been such a successful competitor.
According to Edison Podcast Metrics, thirty-one percent of weekly podcast listeners who are thirteen years old or older prefer to listen to their podcasts on YouTube. This information was obtained from data collected by Edison Podcast Metrics. On the other hand, only 15% of people listen to Apple Podcasts, whereas 27% of people subscribe to Spotify.
The popularity of Apple Podcasts is relatively high. When contrasted with the situation involving Apple Podcasts, there is a substantial difference.
During the same time period, Spotify has made the announcement that it will be expanding its capacity to include music videos to approximately one hundred regions across the globe. As a consequence of this, the company will have access to an even broader variety of choices in the field of video advertising than it did before.
SOURCE: RIN
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