• by Erik Sass  @eriksass1, November 15, 2011

While online ad networks have been criticized by some publishers for driving down the price of display ad inventory, a new alternative is becoming available: private ad exchanges controlled by the publishers themselves. Condé Nast, one of the nation’s biggest magazine publishers, unveiled a new private ad exchange created in collaboration with AdMeld, which also powers the exchange. Condé Nast is the first major magazine publisher to launch such an effort.

Inventory from Condé Nast’s entire portfolio of brands will be available at launch, according to the company, which said price floors will be set ahead of time. Actual CPMs will be determined by real-time bidding on the exchange.

Condé Nast’s digital ad inventory isn’t available through any other network or exchange; thus the private exchange could be described as “the only game in town.”

Currently, only a select group of advertisers have access to the Conde Nast exchange: eBay and Macy’s are already on board, and a handful of other major ad clients will join by the end of the week. Additional advertisers will be invited to participate in the exchange over the course of next year, according to the size of their investments in Conde Nast digital advertising properties.

Access to the exchange seems to be positioned as a reward for more digital ad spending.

Drew Schutte, executive vice president and chief integration officer at Condé Nast, stated: “We’re able to control both pricing and quality, which is important to us, while giving our best clients unique access to our premium inventory and audience.”