Peter Kafka

Recent Posts by Peter Kafka

Here Comes the Google Ad Exchange

wall street buttonwood treeGoogle is about to flip the switch on its long-awaited Ad Exchange.

The search giant will reportedly open up its AdX service, which is supposed to bring together ad buyers and sellers the same way a stock market does, within the next two weeks. ClickZ says the exchange is supposed to open in conjunction with next week’s AdWeek festivities in New York.

That timeline sounds right to me. Google (GOOG) has already been inviting selected clients to try out the system, which is based on the one DoubleClick ran before Google acquired the firm last year. Google told potential buyers via email that it will begin integrating their ads into the exchange this week.

None of this will have any impact on Google’s search users, but it’s potentially important for online advertisers and publishers.

Until now, the online exchange market has been dominated by Yahoo’s (YHOO) Right Media, but Google will become an instant rival as soon as it opens its doors. Meanwhile, Microsoft’s (MSFT) offering, AdECN, seems stuck in the starting gate.

Google’s exchange will open shortly after the departure of its manager, Michael Rubenstein, who is now president of ad tech start-up AppNexus.

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I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik