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November 2, 2009

Microsoft allies with OpenX for third party publisher ad sales

Posted by David Hunter at 12:55 PM ET.

Today Microsoft announced an alliance with OpenX, the vendor of an open source Web ad server and proprietor of a Web advertising market for smaller publishers. The objective is for

… the companies to cross-market and promote products to their respective publisher bases. Under terms of the multiyear agreement, OpenX becomes a preferred partner to publishers for enterprise ad serving solutions. In addition, OpenX will promote Microsoft’s Content Ads monetization products — as well as other products that may be developed in the future — to its existing base of Web publisher customers.

OpenX and Microsoft will each enjoy significant benefits from the partnership. Most notably, Microsoft will have a major distribution channel for its monetization products through OpenX’s community of more than 150,000 Web sites that serve more than 300 billion ads per month. OpenX will, in turn, gain access to a new base of potential customers — via referrals from Microsoft — for its enterprise advertising technology and services.

The Content Ads component of the agreement follows a successful trial Microsoft and OpenX began in August 2008, during which OpenX provided invitations to its publishers to test the product. Content Ads matches ads to relevant editorial content, allowing advertisers to increase campaign effectiveness, which can allow publishers to achieve a higher yield on certain types of inventory. As part of the agreement, OpenX will promote Content Ads in two ways. First, OpenX will integrate Content Ads so that it can be used by publishers who sign up for OpenX Market to better monetize their pages. The company will also build a plug-in to OpenX Ad Server so existing publisher customers can more easily sign up for Content Ads and implement it on their Web site(s). OpenX is the first reseller approved by Microsoft to build a plug-in for Content Ads.

Content Ads is Microsoft’s competitor for Google AdSense and this agreement is an easy way to add ad volume among third party publishers. It is a natural alliance, since big dog Google has their own free in-house competitor for (hosted) OpenX functionality in Google Ad Manager which naturally provides easy serving of Google’s own AdSense ads.

Bigger publishers would probably set their sights higher than either of the above solutions by using Microsoft’s aQuantive products or Google’s DoubleClick. Still the small publisher business is lucrative and not to be disdained – a view that Microsoft only slowly adopted.

Filed under Advertising, Alliances, Coopetition, DoubleClick, Google, MSN, OpenX, aQuantive, adCenter

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