Microsoft Makes Deal For AdECN

    July 26, 2007
    WebProNews Staff

Microsoft added another piece to its developing search and display ad platform by purchasing AdECN, a company whose technology offers Microsoft an auction marketplace for display advertising.

It’s been difficult to ignore Microsoft in the online advertising arena over the past few days. They snagged a deal with social media site Digg that supplanted Google’s advertising on the site. Digg CEO Jay Adelson has said Digg would continue working with Federated Media as well, countering rumors to the contrary.

Also, Microsoft brokered its relationship with Electronic Arts into a three-year arrangement to place advertising on a network of EA Sports titles. Again, Google along with a host of smaller companies lost out to the Microsoft team.

Steve Ballmer, Microsoft’s CEO, dropped a quote-worthy line on attendees of the company’s Financial Analysts Day. CNet cited this gem, classic Ballmer style:

“We are hell-bent and determined to allocate the talent, the resources, the money, the innovation to absolutely become a powerhouse in the ad business,” Ballmer said.

And then, Microsoft announced its AdECN Exchange acquisition. AdECN describes itself as a stock exchange for ads, where a member of the exchange buys on it for advertisers and sells on it for publishers.

“Rather than an ad network, a true ad exchange is the neutral, transparent, automated connection between multiple ad networks,” Microsoft said in its statement about the buy. Advertisers get access to more inventory, while publishers can earn more money per page view.

As AdECN was a privately held company, Microsoft did not disclose financial terms of the deal.