RealTime IT News

AdAuction.com Takes $25 Million Investment from CMGI

OneMediaPlace, the newly re-named incarnation of AdAuction.com, on Monday allied itself with CMGI's advertising companies, securing a $25 million investment from the holding company's venture capital arm.

The money is earmarked to development of the company's technology platform -- part of its plan to expand into the buying and selling of television, print, and radio advertising. So far, the company has offered online and outdoor advertising avails, and it has mostly deal in remnant inventory.

The deal follows OneMediaPlace's recent deal with CMGI (CMGI) portfolio company, Engage Technologies (ENGA), which calls for the two companies to work together to expand their respective reach. CMGI also owns AdForce and yesmail.com, and its venture arm holds stakes in advertising and marketing firms like Radiate and Vicinity. This investment represents the company's first foray into the advertising industry exchange space, which has grown very popular among investors as of late.

The reasoning behind the big growth in the sector -- which includes players like AdOutlet.com, MediaInternet, AdFlight.com, and immediabuy.com, as well as soon-to-be-launched sites like Media Market Makers and AdExchange.com -- is that the media buying process has grown very difficult as the opportunities for advertising have increased dramatically.

"OneMediaPlace will use the power of the Internet to simplify this fragmented and complicated process by creating a medium for the exchange of timely information", said David Wetherell, president and chief executive officer of CMGI and managing partner with CMGI @Ventures.

"Using OneMediaPlace, buyers and sellers will have the ability to react in real time and ensure that ads are sold for true value. The OneMediaPlace solution helps bring the media industry into a single source e-commerce environment."

AdAuction.com, with its auction model, had been criticized for driving down the prices of advertising inventory. With the re-branding effort, the company hopes to leave behind this perception, and the idea that it only deals in remnant inventory.