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.

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