Adbrite Launches Open Targeting Exchange: A Marketplace For Ad Targeting Technologies

AdBrite has launched the Open Targeting Exchange (OTX), a marketplace for ad targeting technologies.  The OTX is expected to deliver superior yield and advertiser effectiveness by leveraging multiple targeting methods and algorithms.  It will also allow the targeting technologies to compete for the right to match advertisements to publisher web pages.  The initial partners for OTX are Lucid Media and Personifi.  Both of them provide contextual targeting algorithms for serving text ads.

OTX works as integrated element of AdBrite’s network and scans multiple eligible targeting algorithms to determine the most relevant advertisement with the highest value for the given site, user, and geography.  The algorithms provided by technology partners determine optimal matches among publisher zones and advertisements in the AdBrite system via a real-time API.

This benefits advertisers by making them reach out to right audience and also benefits publishers by optimizing their ad inventory through relevant and valuable ads.  It also benefits the ad targeting technology providers by providing an ability to build their business without worrying about acquiring and managing their own base of publishers and advertisers.  Targeting providers are allowed to set their own pricing and margins by adjusting their bids.

Ignacio Fanlo, CEO of AdBrite, said

Today, each ad network is built on a single proprietary targeting algorithm.  With the launch of OTX, we’ve opened our platform to create opportunities for, and foster competition among, multiple targeting technology providers. Publishers will benefit from improving revenue yield, and advertisers will generate better results.  The market is moving so quickly that it’s hard to believe what worked yesterday will still work well tomorrow.  AdBrite makes the single-algorithm model obsolete and creates a new, competitive marketplace for targeting technologies. I say, may the best algorithm win!

AdBrite is working with various targeting technology providers and is planning to soon roll out the program, which is currently limited to text ads,  for display ads and other formats as well.

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Posted by Vikrant on Apr 10 2008. Filed under Technology. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry