CBS Interactive is cutting the cord on third-party ad networks and some online ad exchanges effective immediately, paidContent has learned. The company is preparing its own ad serving platform, dubbed Madison, to power the CBS Interactive Premium Ad Network for its group of properties, betting that it can better handle its own inventory as the economy begins to recover. The decision to go in house was first reported by AdAge. Thanks to its purchase of Cnet last year and its moves since then, CBS can claim 200 million monthly users across its sites, securely placing it among the top 10 global web properties. By taking back its inventory from ad nets, CBS is testing the weight of that acquisition.
CBS Interactive President Neil Ashe told AdAge he accepts the probable decline in revenue as a result, but he contends the CBS digital unit can do better on its own over the long term. CBS Interactive isn’t cutting off third-party sites altogether. It will continue to hand over some ad space to online exchanges, including Yahoo’s Right Media, Google’s DoubleClick and Publicis Groupe unit Vivaki’s Audience on Demand platform. Third parties that can promise the kinds of data and prices that meet CBS Interactive’s targets will be allowed to serve the company’s ads.
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