AdECN, consortium of ad networks, to launch auction-based display advertising
AdECN, a non-profit consortium of online ad networks, is slated to launch in the UK shortly. The UK currently has over 40 online ad networks– which reportedly generated revenues of 120 million GBP in 2006. Ten of these networks have already signed up to participate in AdECN.
The key differentiator between this ‘network’ and the other advertising networks (eg. AdBrite) is that it does not involve advertisers and publishers directly, but is dependent on the participation of the ad networks to get its pool of ad inventory and advertisers. The system operates on an auction model where the ad networks provide the publisher ad inventory details and a real-time auction takes place for each ad impression when a visitor lands on a page.
The CEO of AdECN explains more details of the concept, which he likens to that of a stock exchange in operation, in an interview with e-consultancy.
Online advertising is evolving rapidly, with all the new options opening up (market expected to cross $80 billion by 2011, according to Piper Jaffray) , and ad networks have an ever growing role to play to support the growth and reach of online advertising. Consequently, I reckon we may see some more of these ad marketplaces that will be the bidding ground for the different ad networks.
Pay-for-performance marketers, who already work with many of the ad networks that operate affiliate marketing programs, may find this an opportunity to monetize some of the space on their sites without risking their core revenue stream [which they could when running something like AdSense or other CPC ad syndication programs on their sites]. Whether the incremental revenue opportunity from this kind of display advertising will be attractive enough to hard core pay-for-performance marketers remains to be seen.
