Microsoft acquires Internet ad exchange

Microsoft is “hellbent and determined” to become a “powerhouse” in the advertising business, according to CEO Steve Ballmer. As if to underline the point, Microsoft has just signed a deal to acquire an internet ad exchange.

by Helen Leggatt

While financial information is yet to be disclosed, it has been reported that Microsoft has purchased adECN, a Californian internet advertising exchange platform.

AdECN’s technology provides “a hub where advertising networks can come together in a neutral, real-time auction marketplace for buying and selling display advertising”. The firm is a competitor of Right Media which was purchased by Yahoo earlier this year.

"We are hellbent and determined to allocate the talent, the resources, the money, the innovation to absolutely become a powerhouse in the ad business," said Microsoft CEO Steve Ballmer, to those present at the annual financial analysts meeting.

The deal will give advertisers the opportunity to increase ROI by giving them access to more inventory and enabling efficient matching of their requirements. Publishers, meanwhile, have the potential to earn more money from their websites as a result of the increased inventory.

“Both Microsoft and AdECN have a deep commitment to creating the technologies and platforms that enable advertisers and publishers to maximize their ROI in the digital marketplace,” said Kevin Johnson, President of Microsoft's platform and services division.

“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.”