Internet yellow pages company US WEST Dex has gained the exclusive rights in its territory to resell local inventory from AdAuction.com, the San Francisco-based online media buying and selling service. AdAuction.com will provide Dex, Englewood, Colo., with space on local newspaper, directories, or special interest sites in Dex’s 14-state region, which includes the West Coast and Mountain states.
Dex committed to purchase an undisclosed dollar amount of inventory over the nine months of the agreement. AdAuction.com president Chris Redlitz would not say whether Dex’s profit would come from getting the inventory at a discount or reselling it at a higher rate. (Other media buyers who use the service have to agree not to resell inventory.)
Dex will buy local space via AdAuction.com’s Exchange – a new service still under development – that allows publishers to dedicate inventory to AdAuction.com, and allows purchasers to make an offer. While auctions take place during a specific time frame, Exchange inventory is available at any time. Buyers can bid or choose to buy immediately at a price set by the seller.
While Redlitz said the “overwhelming majority” of non-regional sales are still made in the auction mode, the company hopes to expand its local offerings with the new Exchange system. “We’re moving to truly an exchange as opposed to purely an auction,” he explained. “We’re in transition there, but eventually all [local] inventory will be put into the Exchange.”
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