Wednesday, 26 October 2005 10:00

Accipiter partners with Hostworks for ads

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Web hosting provider Hostworks (ASX:HWG) has signed an exclusive agreement with ad management provider Accipiter Solutions to deliver online advertising technology for the fast growing online ad market in ANZ.

Hostworks has hosted Accipiter's AdManager solution for ninemsn in Australia since 2001.

According to Hostworks, Accipiter realised that an increasing number of customers in the region required a locally managed and locally hosted alternative to provide reliable performance, a scalable solution, and credible service.

'Customers are demanding more functionality as they refine their online ad campaigns and seek to differentiate themselves from competitors as they compete for growing online ad dollars,' said Klaus Bartosch, director of sales and marketing for Hostworks. 'Our partnership with Accipiter will provide customers with unparalleled service and functionality. Most importantly, there is no ad-serving performance latency as is typically the case with competitive offerings that are served offshore.'

As part of the new partnership, Hostworks has signed deals with two of the top 10 ad-serving customers, by volume, in the region, realestate.com.au and News Interactive. realestate.com.au is currently the leading Australian properties portal, while News Interactive, the online media division of News Limited, claims more than 150% ad volume growth in the past year and has signed a three-year deal with Hostworks for managed service across more than 100 web sites.

Alistair Carwardine, director of online services for News Interactive, said that 'Hostworks has a proven record of handling high-volume publishing sites and the Accipiter solution by Hostworks has the ability to scale to our needs as we grow.

'With our explosive growth over the past 12 months indicative of a buoyant online ad sector, we wanted to ensure our site network was well-positioned to handle the increased ad delivery requirements,' said Carwardine. 'We chose Hostworks' managed service because it gives us the benefits of the solution without the need for extra staff, having to build boxes, or run the application ourselves.'

Revenue figures recorded by the Audit Bureau of Verification Services report that Australian advertisers spent 64% more of their budget online in 2004 than in the previous year, making it the nation's fastest growing medium. The online advertising market grew more than six times faster than the overall ad market last year to hit $388 million. With the online ad market in the Australian/New Zealand region growing at 65% per year, combined with traditional ad media static, Accipiter felt it was a perfect time to expand its presence in this market.

'Accipiter's proven ad management functionality, our strong global reputation, and focus on customer service position us for a strong partnership with Hostworks,' said Brian Handly, Accipiter CEO. 'Hostworks' recent successes with realestate.com.au and News Interactive are just the start of a powerful new revenue stream for Hostworks in a rapidly growing global market.'

Hostworks' corporate vision is to build an integrated digital marketing platform that will become the logical choice for companies planning major traditional media ad campaigns. 'Customers are telling us they realise that integration with digital media solutions is now a critical requirement of traditional campaigns. Accipiter is a pivotal component of our solution and we look forward to working with them moving forward,' said Hostworks' Mr Bartosch.


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Stan Beer

Stan Beer assists with Digital Advertising installation and monitoring of advert performance. With 35 plus years of experience working in IT and Australian technology media, Beer has published articles in most of the IT publications that have mattered, including the AFR, The Australian, SMH, The Age, as well as a multitude of trade publications. Any previous news story submissions should be director to editor@itwire.com and advertising enquires to andrew.matler@itwire.com

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