AdECN Invites Ad Networks to Join Pilot to Test Latest Exchange Model
The launch of the federated system will provide functionality not currently available in any online exchange.
REDMOND, Wash., and NEW YORK — AdECN Inc., a Microsoft Corp. subsidiary, today at the ad:tech New York conference invited advertising networks that buy and sell online advertising to join in a limited pilot of its new federated system. The federated system is an extension of AdECN’s existing exchange platform and will provide functionality not currently available in any online exchange, including the ability for ad networks to use their own proprietary technology, such as behavioral and demographic targeting, and optimization tools.
Like the New York Stock Exchange model, the AdECN exchange acts as a neutral auction house that automates the buying and selling of online display advertising. A neutral exchange is one that brings together multiple ad networks, agencies and online brokers to create a marketplace where all participants access a larger pool of supply and demand for online advertising inventory.
Unlike other exchanges, with the addition of the new federated system, the AdECN exchange will now allow its members to price every ad impression in the auction, so display ad impressions aren’t undervalued or overvalued. For instance, once an auction is initiated within the exchange, all of the members can bid equally for that ad impression and the highest bid wins. The exchange will also continue to provide a hosted technology service for other ad networks, brokers and agencies.
“Our goal is to provide a fair and level playing field for all the online advertising industry players to play on,” said Jeff Green, co-founder of AdECN. “The federated system simplifies online buying and selling. It will allow ad networks to use their own tools in which they have invested large amounts of time and money, to connect advertisers and publishers across the industry.”
Ad networks and their advertiser and publisher customers will benefit because of the following:
• Detailed information about the attributes of ad inventory prices is available, which no other online auction can currently provide.
• A simple, transparent cost-per-transaction pricing structure via auction will help end the inefficient and ineffective back and forth buying between the ad networks to fulfill ad inventory.
AdECN has been running a test pilot of the federated system with Microsoft’s owned and operated ad network properties including the MSNDR network and Content AdsBeta, Microsoft’s contextual advertising offering.
“Since being acquired by Microsoft, we now have the fuel we needed to build and test our new model,” Green said. “Pricing every ad impression in a neutral auction environment levels the playing field and will help us start to address the pricing issues we’ve seen in display marketing.”
Pilot participants will be selected from a pool of online ad networks, that express interest and meet the outlined criteria. AdECN will begin the pilot in early 2009 and intends to roll out additional robust data and targeting features next year.
All members of the AdECN exchange, including pilot participants, pay a membership fee to join the exchange and flat transaction fees based on ad inventory volume. Visit http://www.adecn.com/contact.html to sign up or for more information.
AdECN is a neutral, real-time, auction-based exchange for buying and selling online display advertising. The company is based near Santa Barbara, Calif. More information is available online at http://www.adecn.com or via phone at (805) 566-2600.
About Microsoft Advertising
Microsoft Advertising provides world-class advertising tools and solutions for digital advertisers and publishers to drive brand and consumer engagement. The portfolio includes all of Microsoft’s digital advertising businesses: its global media network that includes MSN, Windows Live, Office Live, Xbox LIVE, Live Search, Facebook and more, and its global technology platforms and tools that include Atlas, AdECN, adCenter, DRIVEpm, Massive and ScreenTonic, which together create engaging digital advertising experiences for their consumers. Microsoft Advertising helps make buying and selling media simple, smart and cost-effective across media and devices in the Microsoft network of properties and beyond, which spans 42 markets globally and 21 languages. Visit http://advertising.microsoft.com for more information.
Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.
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