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BREAKING NEWS & VIEWS

IDG TechNetwork Launching Ad Exchange for Tech


Thursday, January 13, 2011

With a tech ad network that reaches 90 million unique users worldwide each month, IDG’s TechNetwork is moving to the next stage of ad technology sophistication. The company announced this week it will launch a private ad exchange dubbed Tech Media Exchange that will allow marketers, agencies and demand-side platforms to assemble audiences via real-time bidding across its sites. A beta program will start next month and include 500 sites in the TechNetwork. The inventory will be offered to the trading desks and demand-side platforms that have emerged in recent years at agencies. This new ad economy aggregates inventory and user data among many sites around the Web to match ads to specific audiences. According to IDG, the system will help publisher partners get the best price for their inventory and also maintain control over the way their pages are used by advertisers.

IDG TechNetwork is using technology from ad exchange AdMeld to create this private network. The ad exchange model is meant to complement, not replace, the more customized ad programs and lead-gen in the TechNetwork portfolio. In the last few years, a complex set of automated bidding technologies and data products has come together to promise marketers greater efficiencies in finding the most relevant audiences no matter where they pop up on the Web. The technology understands the profile of who is looking at any given page in the network and can let marketers bid in real time on presenting the most relevant ad to that user.

The process is meant to give publishers higher CPMs for many pages, which advertisers are willing to pay for the increased efficiency of only targeted users. Until recently, much of the real-time and ad exchange activity has been on the consumer side, but IDG is not only applying the technology to b2b advertising but also targeting a specific vertical.

Exactly how much spending is going on in real-time ad exchanges is a bit of an open question, however. Some forecasters believe that large percentages of online ad inventory will soon be bought and sold through automated ‘RTB’ technologies. Others in the industry argue that the overwhelming majority of display ad dollars continue to flow to traditional contextual and straightforward network ad buys.

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