AdECN, a company that provides auction-based ad exchange technology for its partners, has signed a deal with FUHU Ltd., one of the largest providers of services over broadband in China.
FUHU promotes all manner of web properties, including social networking, dating, picture sharing, SMS, video, gaming, and blogging to more than 20,000 Internet cafes in mainland China. Unlike the US, Internet cafes in China are big business, with each cafÃƒÂ© housing hundreds of workstations. The use of an ad auction system like AdECN’s in China is not typical.
“FUHU Ltd. is making a visionary move by introducing a stock-market-like system in China for selling online ad inventory,” said AdECN CEO Bill Urschel in a statement. “By partnering with AdECN, FUHU Ltd. will completely avoid the type of waste and inefficiencies inherent in systems constrained by bulk buying and selling via rate cards. For AdECN, this is a tremendous opportunity to demonstrate on a grand scale the power of our real-time auction technology and our role as a neutral player between buyers and sellers.”
AdECN works like a stock exchange. Advertisers bid on inventory and set exactly how much they’re willing to pay for a spot. Whenever a user visits a site on the AdECN network, a micro-automated bidding war takes place, with the winning advertiser getting their ad posted on the site.