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been a trend in the market towards vertical integration between companies present in intermediation services and companies providing ad serving tools.

  • 233.

    Yahoo!, which sells ad space through the Yahoo! Publisher Network and the Right Media Exchange, and recently acquired major behavioural targeting ad network BlueLithium, also developed a third-party display ad serving solution, Yahoo! For Publishers129.

  • 234.

    Microsoft sells ad space through Microsoft AdCenter and DRIVEpm (both ad networks) and the ad exchange AdECN130. Microsoft has an internally developed technology solution that provides publisher-side display ad serving for ads placed on Microsoft properties and also owns the Atlas third-party ad serving provider. Microsoft recently also launched “AdMarket,” a new technology designed to allow publishers to sell premium inventory without using a direct sales force or an ad network (AdMarket allows publishers to set up their own proprietary ad exchanges to facilitate the sale of inventory). In addition, Atlas offers its Network Control Panel, which is integrated with its publisher-side ad serving product and is intended for mid- to large-size publishers that redirect remnant inventory to ad networks. It allows publishers to manage relationships with multiple ad networks and optimize inventory by choosing the network that will provide the highest revenue.

  • 235.

    AOL owns the leading display ad network (Advertising.com), a major behavioural targeting ad network (Tacoda), a display ad serving provider (ADTECH) and a mobile phone advertising network (Third Screen Media). In addition, AOL recently announced the creation of Platform A, which integrates its leading display ad network, Advertising.com, with its newly acquired technologies and businesses, including ADTECH’s display ad serving business.

  • 236.

    WPP, through its acquisition of 24/7 Real Media, operates a major ad network (Global Web Alliance), and a publisher-side ad serving platform (OpenAdStream). WPP plans to offer an integrated online advertising service (ad buying, ad selling, ad network, ad serving).

129 "The combination of BlueLithium's network and Yahoo!'s engaged audience will provide an unprecedented buying opportunity across what we believe will be one of the world's leading online display ad networks," said Susan Decker, president of Yahoo!. "And BlueLithium's expertise in network management will better enable Yahoo! to manage supply and demand across our network, by balancing advertiser goals with publisher value. Building on our acquisition of Right Media, this transaction demonstrates our commitment to increasing our investments in areas which can most contribute to Yahoo!'s long-term success." See http://yhoo.client.shareholder.com/releasedetail.cfm?ReleaseID=262635.

130 "We believe the addition of AdECN to the Microsoft portfolio is a perfect fit and will create more efficiency for the industry by forming a more robust marketplace between advertisers and publishers, aggregating more supply and demand. This is good for the whole advertising industry.” said Kevin Johnson, president of the Platforms and Services Division at Microsoft. “Joining forces with Microsoft will provide the capital and resources to enable AdECN to scale the exchange at a much faster pace, making it more attractive to the advertising networks and other traffic aggregators looking to better serve their advertisers and publishers,” said William Urschel, founder and chief executive officer, AdECN. See http://www.microsoft.com/Presspass/press/2007/jul07/07-26AdECNPR.mspx in July 2007 when the deal was announced.


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