Microsoft Corp has given its nod to acquire AdECN Inc, an advertising exchange platform company. The financial details of the deal have not been disclosed as of yet. The exchange platform’s technology serves as a hub where advertising networks can come together in a neutral, real-time auction marketplace for buying and selling display advertising. The acquisition is expected to be completed in the first half of Microsoft’s fiscal year 2008.
The deal is supposed to be a key component of Microsoft’s strategy to develop a comprehensive search and display advertising platform. “Both Microsoft and AdECN have a deep commitment to create technologies and platforms that enable advertisers and publishers to maximise their ROI in the digital marketplace. We believe the addition of AdECN to the Microsoft portfolio is a perfect fit and will create more efficiency for the industry by forming a more robust marketplace between advertisers and publishers, aggregating more supply and demand. This is good for the whole advertising industry,” said Kevin Johnson, President-Platforms and Services division, Microsoft.
An official note about the association stated: “Advertisers will get access to more inventories, enabling more efficient matching of their requirements and increased ROI. Publishers will be able to increase yield -- earn more money per page view -- due to the higher volume of available inventory. Both groups will benefit from the exchange’s neutrality and transparency, enabling them to make more informed decisions about their bid and ask decisions.”
“Joining forces with Microsoft will provide the capital and resources to enable AdECN to scale the exchange at a much faster pace, making it more attractive to the advertising networks and other traffic aggregators looking to better serve their advertisers and publishers,” added William Urschel, Founder and CEO, AdECN.
The exchange concept is similar to the Nasdaq that serves as the hub for financial brokerages, enabling all parties to come together and have access through a neutral party to a larger pool of supply and demand for their clients.