Nasdaq has announced its partnership with the world’s first advertising contract exchange. The New York Interactive Advertising Exchange (NYIAX) is a cloud-based, blockchain-enabled platform that provides media buyers with a transparent and trusted market. NYIAX will accomplish this by combining financial trading and advertising technology into a single platform that enables publishers and advertisers to buy, sell, and re-trade future advertising inventory.
“NYIAX is a trading platform that brings Wall Street to Madison Avenue through a Nasdaq-powered, seamless global exchange that allows publishers and advertisers to buy, sell and re-trade premium advertising inventory as guaranteed contracts,” said Lou Severine, CEO of NYIAX.
NYIAX takes a progressive approach by providing a standard interface that will allow the market to grow and reduce division. The Nasdaq Matching Engine and various other exchange data models provide the foundation for the NYIAX platform. In addition, NYIAX and Nasdaq co-created modules specifically for advertisers and publishers.
NYIAX can benefit publishers by helping to increase revenue by reducing fees, increasing sell-through, and retaining higher cost per thousand impressions. For advertisers, the exchange allows for an alternative means of discovering and purchasing inventory, and affords advertisers the ability to lock in premium inventory in advance.
“As a global leader for exchange technology, we can adapt our platform to accommodate a wide variety of market rules, asset classes, and new technology innovations. NYIAX is leveraging our Nasdaq Financial Framework architecture, which draws on cutting-edge technology, including the integration of blockchain technology as our core ledger, as well as cloud-enabled trading and clearing capabilities,” said Nasdaq’s Executive Vice President and Head of Market Technology, Lars Ottersgård.
The pilot is expected to be complete in late 2017. And upon its completion, NYIAX will integrate trading use cases, benefits, and details into its training program to ensure its clients have the tools they need to use the platform proficiently.
“The platform immediately delivers clients upfront media buying and re-sell capabilities. As a new secondary market, a new potential revenue stream is one of the main reasons we are seeing so much interest in our pilot program,” said Severine.
NYIAX isn’t Nasdaq’s first foray using the blockchain. In 2015, Nasdaq partnered with San Francisco-based blockchain technology provider Chain to introduce Linq, a cloud-based blockchain platform for the private securities market. Nasdaq demonstrated Linq at the Money20/20 event in Las Vegas in October 2015, and in January 2016, Nasdaq announced that the first ever private securities issuance was documented with blockchain technology.