Network AdBrite Launches OTX ‘Exchange’

Somehow, in a bit of what might be called “coverage creep,” I’ve become well acquainted with ad networks. Accordingly I get pitched and briefed on developments in that realm. (Also I recently did a big review of local ad networks and their coverage/capacities.) It’s also the case that people who used to work at companies and in areas I cover move on to new jobs in new companies. In one such case, Paul Levine, formerly GM of Local at Yahoo is now VP of Marketing at network AdBrite, which is doing some very interesting things — including in local.

However, today the company released what it’s calling OTX: “Open Targeting Exchange.” What’s different here is that AdBrite is asking third parties to “bring their algorithm” to AdBrite’s network of publishers and advertisers. Unlike conventional exchanges that use a single algorithm and seek third party inventory, the OTX is opening up to NIH ad technologies. It will thus use different algrorigthims: BT, local, demographic, etc. to determine what ad is going to deliver the highest yield at any given moment (although I don’t think the analysis happens in real time).

I can’t pretend to understand the back end here but it strikes me as a really interesting approach to improving returns for publishers and advertisers (as well as the network). Third party technology companies that bring their algorithms to the OTX will get a piece of the revenue they help generate.

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