01:50 PM EDT, 10/22/2024 (MT Newswires) -- Spotify Technology ( SPOT ) is testing a new ad exchange, Spotify Ad Exchange, or SAX, focused initially on video ads, aiming to expand its automated ad offerings, Axios reported Tuesday, citing sources.

The company is partnering with Trade Desk ( TTD ) to connect North American advertisers to Spotify's ( SPOT ) video ad inventory, with audio ads to follow soon, the report said.

SAX is reportedly designed to integrate with different demand-side platforms to connect advertisers directly to their inventory. Spotify ( SPOT ) will join Universal ID 2.0, a framework for ad-targeting developed by The Trade Desk ( TTD ), for privacy-safe ad targeting, according to Axios.

Spotify ( SPOT ) started its testing phase with The Trade Desk's ( TTD ) supply-side platform plugin last week, the report added.

Spotify ( SPOT ) and The Trade Desk ( TTD ) did not immediately respond to MT Newswires' requests for comment.

Shares of The Trade Desk ( TTD ) were up 1.2% while Spotify ( SPOT ) was rising 1.1% in recent trading.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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