Microsoft Adds an Ad Exchange
Microsoft announced late Thursday that it has agreed to acquire AdECN, an online auction for Web display advertising space. The price of the purchase was not disclosed.
Carpinteria CA-based AdECN’s technology provides a market where ad buyers and Web publishers can come together in real time to buy and sell ad inventory. As in a stock exchange, participants buy seats on AdECN, with the cost dependent on the member’s planned volume and the quality of its traffic.
Publishers release available ad space to the exchange and specify the types and content of ads they’re open to. Advertisers bid on that inventory and include information on both the ads they want to run and the audiences they want to target. The AdECN platform then matches the most appropriate advertiser and highest bidder with the most effective ad vehicle and clears the transaction between advertiser and publisher. According to Microsoft, the bid process can be completed and an ad delivered within 12 milliseconds.
“Joining forces with Microsoft will provide the capital and resources to enable AdECN to scale the exchange at a much faster pace,” said CEO William Urschel, who founded the company in 2003.
The move comes after both Google and Yahoo! have acted to acquire display ad exchanges, Google with its planned purchase of DoubleClick and Yahoo! with the acquisition of Right Media.
Microsoft says the AdECN exchange will continue to operate as a separate entity, although it will become part of the company’s Online Services division. AdECN will maintain its current offices and staff. The acquisition is expected to be completed by the end of the year.
