AdECN Asks Ad Networks To Try Federated System

Microsoft AdECN Announce Federated SystemNo, Federated Media has not suddenly become part of AdECN, and by association, Microsoft.

Apparently, AdECN is ready to test its new ad exchange platform called the Federated System and is asking that interested ad networks come and test the new version of the advertising exchange before it reaches a wider public release in 2009 according to the AdECN press release and an article in MediaPost.

The key difference in the new system (announced during AdTech New York) in comparison to competing exchanges according to AdECN is that Federated will “allow its members to price every ad impression in the auction, so display ad impressions aren’t undervalued or overvalued.” We’re not sure exactly what this means but assume that based on knowledge from previously served, similar impressions, the Federated System will provide performance/behavioral and/or contextual metrics for current available “spot” inventory.

To date, AdECN has been using the Microsoft ad network as a test bed meaning: “Microsoft’s owned and operated ad network properties including the MSNDR network and Content AdsBeta, Microsoft’s contextual advertising offering.”

Pricing for the new service is transactional and we would presume that this means a transaction equals one ad impression served – a buying and selling ad network agree to a single, display ad placement.

AdECN has stepped into the public eye with this announcement after a long silence. Hopefully, it hasn’t stepped into something else.

Does the new platform work? Is it another Microsoft swing-and-miss in the online advertising space?

We’ll see.

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