• by Laurie Sullivan  @lauriesullivan, January 28, 2011

ignitAd has begun to roll out an ad yield optimizer that provides bid optimization management forecasting demand patterns using predictive analysis algorithms. The technology estimates the highest-paying advertising source for each ad impression before making the buy, achieving "optimal" revenue for publishers.

The bid optimization technology aimed at improving revenue determines how to distribute the ad inventory between exchanges, networks and demand side platforms (DSPs), says Assaf Roth, ignitAd CEO and cofounder. "Clients have seen an increase in yield between 50% and 150% from using the bid management platform. Sometimes, we can hit higher."

The system predicts the correct price for each impression. By analyzing each impression, it can generate higher yields. But the startup could run into challenges. Similar technology already exists from AdMeld, Rubicon Project and Pubmatic.

Roth, of course, calls ignitAd's technology "unique." He insists that the bid optimization technology, which is based on a proprietary predictive analysis and advanced bidding algorithms, makes the company stand out from competitors.

ignitAd, based in Tel Aviv, Israel, supports a few dozen Web sites that have begun to test the platform. The company has secured $2 million in venture-capital funding led by DFJ Tamir Fishman Ventures and JVP Media Labs.