LinkExchange

LinkExchange was a popular Internet advertising network that allowed websites to exchange banner ads with each other. It was founded in March 1996 by Tony Hsieh, Sanjay Madan, and Ali Partovi. The service was designed to help small websites gain exposure by displaying their ads on other member sites in the network.

History[edit | edit source]

LinkExchange was created during the early days of the World Wide Web when online advertising was still in its infancy. The founders, who were recent graduates of Harvard University, developed the idea as a way to help websites increase their traffic without having to spend money on advertising.

The company quickly grew in popularity, and by 1998, it had over 400,000 members and was serving more than 5 million ads per day. This rapid growth attracted the attention of larger companies, and in November 1998, LinkExchange was acquired by Microsoft for $265 million in stock.

Business Model[edit | edit source]

LinkExchange operated on a simple principle: members would display banner ads from other member sites on their own websites. In return, their own ads would be displayed on other sites within the network. This exchange of ads allowed small websites to gain visibility and attract more visitors without incurring significant advertising costs.

The service was free to join, and members earned credits for each ad they displayed. These credits could then be used to have their own ads shown on other sites. LinkExchange also offered premium services, such as targeted advertising and detailed analytics, for a fee.

Impact and Legacy[edit | edit source]

LinkExchange was one of the first successful online advertising networks and played a significant role in the development of the internet advertising industry. It demonstrated the potential of online advertising and paved the way for other advertising networks, such as Google AdSense and DoubleClick.

After its acquisition by Microsoft, LinkExchange continued to operate for a few years before being integrated into Microsoft's broader advertising platform. The founders went on to pursue other ventures, with Tony Hsieh later becoming the CEO of Zappos, an online shoe and clothing retailer.

References[edit | edit source]

External Links[edit | edit source]

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