IQ News: New Online Ad Network, Aaddzz, to Launch

Another online advertising network is preparing to join a crowded field. Only this network, called Aaddzz, is hoping that advertisers are ready to fully embrace a pay-per-click pricing model rather than the pay-per-impression scheme that is standard on most Web sites. Unlike other ad networks, such as DoubleClick, which is thus far only willing to commit to such a payment plan as a side venture, Aaddzz plans to make it the cornerstone of its service. The network is being launched by Information Access Technologies, a Berkeley, Calif.-based Internet service provider that is looking to add new revenue streams. It began a beta test on June 26. Information Access would not disclose the launch date.
“Our company is different from many ISPs in that we have an R&D department so we can develop software,” said Information Access president Arthur Britto. “Seeing what competition is like in the ISP world [Aaddzz] seemed like a healthy idea.”
The network uses an extensively automated system to target ads and give advertisers the lowest cost possible, Britto said. Aaddzz plans to take a 20 percent cut, with a minimum charge of 10 cents per click through. Advertisers can pay on a CPM basis if they want, although Aaddzz is discouraging that practice. In fact, Britto wants to eventually move Aaddzz to a pay-per-sale model, a concept which hasn’t yet been attempted on the Internet.
Miles Walsh, president and CEO of rival FlyCast Communications, downplayed the importance of Aaddzz pricing approach. “I don’t know that [Aaddzz] is all that different,” he said. “It’s all in where the [transaction] is accomplished and how you process it.”
Britto said Aaddzz is pursuing partnerships with advertisers and Web sites to build up the network.