Online advertising company AdEffective (ASX:ABN) has signed a new agreement that will allow it to enter the display advertising market.
The company said it had signed a platform publisher agreement with the Rubicon Project Incorporated to allow Footar access to Rubicon's yield optimisation platform.
AdEffective said it expects the deal to allow it to grow its display advertising revenues to a level on par with its search advertising takings – which currently account for 95% of its total revenue generated – within 12 months.
In an indication of the size of the new market, the company cited estimates that display ads will account for 24% of the total US online advertising market in 2011.
The company plans to develop its Footar ad digital content delivery platform in a joint venture with Affinity, and on Thursday reveals it expects to announce a finalization of its JV agreement within the next 14 days.
AdEffective last month revealed plans to narrow its focus to Footar and its AdFeed syndicated online ad business, ceasing further investment in a domain name monetisation platform and selling off three web assets.
ABN shares stayed flat on Thursday at $0.001.