AD NETWORKS: IN FOCUS
Published: July 18, 2007
Ad Exchanges at a Glance
 
AdECN

1. Who are your participating publishers?
The AdECN Exchange offers membership only to recognized ad networks. Therefore, the inventory provided by publishers is determined solely by the ad networks participating in the exchange. As per our confidentiality agreement, we do not disclose information about the clients of our ad network members (i.e., advertisers and publishers).

2. Who are your participating advertisers?
Same answer as above.

3. Who are your participating networks?
As this is competitively sensitive information, at this time we do not disclose the identity of the members of the AdECN Exchange.

4. What is the number of monthly transactions?
At this time we do not make public transaction volume data.

5. What are your dynamic pricing capabilities?
The AdECN Exchange uses CPM pricing in an "ask and bid" auction model. As an auction-based exchange, advertisers -- working through the ad network member -- specify the amount they are willing to bid for each impression based on their optimum targeting preferences. Publishers -- again, working through an ad network -- specify the minimum bid that they will accept for impressions. The highest bid wins based on auctions that are held for each impression served.

6. How many transactions per second in a day?
Same answer as question 4.

7. What kinds of inventory are you selling? Static? Rich media? Video?
Currently, static and rich media.

8. How can advertisers target their ads?
The AdECN Exchange offers targeting based on a variety of relevant factors, resulting in a degree of granularity beyond anything else in the industry today:

Advertisers can specify in advance their target audience based on the visitor's browser (Firefox, Internet Explorer, Opera and/or Safari) and their operating systems (Microsoft Windows, Mac, BSD, Linux or Sun).

The advertiser can also target ad delivery based on words or phrases to be matched with the viewer's recent search engine queries.

Maximum possible relevance of ad delivery is achieved using four levels of contextual targeting, including by specific website, any of 26 channels, any of 255 categories and by any number of keywords. In all cases, AdECN reads the web page on-the-fly to determine the true content, easily keeping up with ever-changing blogs and news sites.

Finally, advertisers can select viewers by profile, including factors such as age, gender and income.

Overlaying all of these methods are the geographic location of the viewer, the time of day (at the viewer's location or at the advertiser's) and frequency-capping, which prevents any single viewer from seeing any single ad too many times.

9. What differentiates your ad exchange from other ad exchanges?
AdECN is the only real-time, auction-based, neutral exchange for online display advertising. Based on the proven principles of a stock exchange, AdECN (an acronym for Electronic Communications Network) is a secure and level playing field for hosting live, automated auctions of display ad inventory. Here are the key characteristics of the AdECN Exchange, which are also the differentiators between our ad exchange and others in the industry:

The exchange acts as a clearinghouse and as a single point of contact for all buyers paying for inventory and sellers. This ensures that all parties receive due payments.

Since only ad networks and similar traffic aggregators can participate as members on the exchange, AdECN does not compete against its members, nor does it participate financially in the transactions.

As a true auction-driven marketplace, the highest bidder for every single impression wins. This means that the market sets the price, not the auctioneer.

AdECN runs a CPM auction to provide the most control at the most granular level. Advertisers can pay for impressions on a CPC or CPA basis in addition to CPM.

AdECN charges a very low, flat CPM transaction fee, as opposed to a percentage of the deal, ensuring neutrality. The exchange is only concerned with creating the most efficient market possible and has no vested interest in the amount involved in each transaction, just that buyers and sellers are matched appropriately.

Auctions are held for each individual ad impressions, matched specifically to the viewer or the situation, providing extraordinary contextual, behavioral and profile-based targeting. This means that advertisers know what they are buying and pay only what it is worth to them.

The AdECN Exchange is automated, matching buyers with sellers every single time a viewer lands on a website.

All auctions are performed in real-time, meaning whenever a viewer lands on a web page in the exchange, AdECN holds an auction among all of the interested advertisers and finds the winner in about 12 milliseconds. The result is that advertising campaigns can be launched, monitored and changed on-the-fly and inventory can be managed against real, up-to-the-minute revenue flows with detailed reporting.

AdECN provides complete transparency, both in the rules that govern the exchange and the auctioning of inventory and resultant revenue generated. Buyers always know what they are paying for and sellers know how the money they earn relates to the impressions they deliver.

10. What are the advantages of an ad exchange serving as a clearinghouse for all billing and payment between parties? 
The AdECN Exchange is both a clearinghouse for payments to and from members and a single point of contact. Instead of having to work with a multitude of ad network partners to achieve the best degree of liquidity, reach and distribution, members of the exchange have access to the broadest marketplace possible through just one point of contact, AdECN.

The result is an end to chasing payment for a variety of different network partners, saving members valuable time and resources and enabling them to work with a wider spectrum of advertisers and publishers, including those serving highly specific niche markets.

11. How does your ad exchange ensure neutrality to protect the interests of its ad network members and their clients, the advertisers and publishers?
Unlike other ad exchanges, AdECN maintains neutrality by accepting only ad networks and similar traffic aggregators as members, meaning the exchange will never be in a competitive position against its members. Furthermore, the exchange does not participate on a percentage or revenue share basis in the transaction, but rather uses a flat fee model based on the members' volume of transactions, ensuring that it remains a disinterested, neutral marketplace for its members.

12. Can your ad exchange service be integrated with other ad management platforms?
Members of the AdECN Exchange can choose to have the exchange's system do the actual ad serving or use their preferred third-party ad server. AdECN also provides an API that enables third party applications (insertion order management, CRM, reporting, et cetera) to give and get data from the exchange.

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