Microsoft acquires ad exchange
Microsoft has announced that it is buying out fledgling online advertising exchange AdECN, as it attempts to catch up with rivals Google and Yahoo.
Although Microsoft has not released details on the acquisition, it is believed that the deal was worth between $50 million and $100 million. AdECN runs a system where website owners can tender advertising space to publishers, with the highest bidder winning out.
It offers a similar service to Right Media, which was bought out by Yahoo for $680 million earlier this year.
AdECN specialises in so-called “remnant” inventory - which comprises of less-desirable web advertising space that would otherwise go unsold.
The deal allows the company to “move forward with all of the core components that we need to enable this ad platform” Kevin Johnson, president of Microsoft’s Platforms and Services Division, commented.
The larger search engines are fighting to gain advantages as they look to become leading purveyors of both paid search and display advertising.
Microsoft recently lost out to AOL as both companies bid to acquire behavioural targeting advertising firm Tacoda.
