Chris Anderson and Fred Wilson are building what they call the “Long Tail of Business Models” today on each of their blogs. Among the business models I would logically suggest (in that I work on ADSDAQ) is the “market maker” business model of ad exchanges.

Ad exchanges such as ADSDAQ, Yahoo!’s RightMedia and Google’s DoubleClick AdX ad exchange provide a market for buyers and sellers of online advertising to efficiently buy and sell online ad inventory. As is the case with ADSDAQ, the ad exchange makes its ‘cut’ as a market maker by effectively earning the difference between the advertiser’s BidPrice and the seller’s AskPrice.

As of right now, the growing list of “Long Tail of Business Models” on Chris and Fred’s blogs include:

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Momentum in the online advertising space is given detailed analysis today by JPMorgan’s Imran Khan in his report “Nothing But Net.”

As noted by Khan, strength in the online advertising sector is headed for the gas pedal:

“While we think CPM growth was relatively muted in 2007, we expect 2008 will see it accelerate, driven by several factors, including easier comps, better inventory sellthrough, behavioral and geographic targeting, and ad exchanges.”

In regard to the benefits to such ad exchanges as ADSDAQ by ContextWeb, DoubleClick’s AdX Ad Exchange and RightMedia, Khan states in his report:

“Ad Exchanges have emerged as an efficient solution to these new challenges [inventory growth] and are gaining traction to alter the landscape for selling and purchasing display advertising inventory.”

PaidContent.org’s Joseph Weisenthal highlights some of Khan’s additional key points:

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The internet is the perfect conduit for decentralizing control in ways that has not been possible before. The blogosphere gives the control to individuals to express and share their opinions and ideas with ease and has gained phenomenal popularity. The immensely popular social networking space gives the control to the individuals to express themselves and control who they connect to.

So wouldn’t it make sense for the online advertising space to also move towards decentralizing control by putting individual bloggers, content creators, publishers and advertisers in the driver’s seat?

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Part of any marketer’s online advertising toolkit, email marketing can be a great way to target niche audiences and understand one’s return on investment (ROI). In an article today in the Wall Street Journal, “Selling Software” by Jeanette Borzo, Ms. Borzo offers tips on a few companies doing it “right” for small business owners. This list includes:

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If you’re an online blog owner or advertiser, and you’re looking to leverage social media at no additional cost other than a bit of elbow grease, how about giving these 9 ideas a try? FYI, a ContextWeb presence on any of these sites is linked where possible…

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Games is a market viewed as having huge potential for advertisers. Last year, Microsoft’s acquisition of Massive - a firm devoted to in-game advertising - was a pre-emptive strike by the Redmond behemoth to grab its share of advertiser revenue.

Today, according to Red Herring, Google has purchased Adscape for a relatively measly $23 million. It’s ‘measly’ only in comparison to other recent valuations and purchases in the internet space such as YouTube, Facebook and MySpace. Adscape, is believed to have patents for in-game advertising that Google can leverage in the future. Wired’s Monkey Bites blog writes that in spite of analysts predictions of future larger deals with firms like Electronic Arts (which owns Pogo.com), this may be it for Google and games for a while.

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As reported in today’s Washington Post, Eric Schmidt, CEO of Google, flew out to D.C. to try and make nice with the ‘inside the beltway’ crowd. It seems that things did not go as well as expected in that Mr. Schmidt had to answer a question on email tech support and “by the time the clock ran out on Schmidt’s 25-minute speech, more than a third of the audience was gone.”

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Jeff Burkett at Media Landscaping writes about a panel that I unfortunately missed at AlwaysOn.

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