Spotify thinks its music algorithm is ripe for programmatic advertising.
Today the company announced that it has acquired MightyTV, a New York-based app that uses machine learning and personalization to create playlists of recommended TV and movies. According to a statement from Spotify, the MightyTV team will join Spotify, and its founder and CEO Brian Adams is now vp of technology for the music-streaming service. Terms of the deal were not announced.
Adams will oversee Spotify’s programmatic advertising business, which is now live in 20 countries. Adams previously founded publisher monetization platform AdMeld in 2007 before selling it to Google for $400 million in 2011. According to a Spotify rep, Adams will also build out Spotify’s ad-tech and data capabilities for advertisers. Earlier this month, Spotify also acquired audio-recognition startup Sonalytic to improve the technology that powers its personalized algorithm for music.
Spotify has deals with AppNexus, Rubicon and The Trade Desk in place that let advertisers run either 15- or 30-second audio ads by bidding against demographic data like listening habits, location, gender and age.
“The content recommendation system MightyTV has built is incredibly aligned with how we think about advertising technology and marketing personalization,” said Jason Richman, Spotify’s vp of product in a statement. “Brian and his team will help us continue to innovate on free monetization and extend our leadership position in programmatic audio.”