Madison Avenue on a cloud: ad exchange network raises $15 million

AppNexus, a startup founded by three Mad Men from Yahoo!, Google and DoubleClick, is tying its fortunes to the growing interest in cloud computing. The company is hosting its application on a cloud server, but it is also claiming to have the first ad exchange network designed for a cloud environment.

The business model seems suited to the technical architecture. The AppNexus Cloud is offered to both buyers and sellers of display campaigns as a complete solution for trading ad space across multiple networks. From the client front-end, advertisers can bid on publisers’ network offerings. The same front-end also allows both advertisers and publishers to manage the campaigns and track performance.

AppNexus is not the first company to offer a bidding system for multiple ad networks. Invite Media and DataXu are also in the field (and AppNexus works with Invite Media’s network).

Netazza and AppNexus cloud environment for ad exchange platform
Netazza and AppNexus cloud environment for ad exchange platform

AppNexus is doing what Mad Men are good at: capturing the spirit of the day.

Venture funding has been provided by Kodiak Venture Partner, Venrock and First Round Capital. A total of $15 million has been committed. The hosting environment is run on Netazza’s cloud solution; network diagram below.

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