LinkExchange

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LinkExchange was an early internet advertising network that was founded in 1996 by Harvard University graduates Tony Hsieh and Sanjay Madan. It is notable for being one of the pioneering platforms in online advertising, allowing website owners to freely exchange banners and thereby increase their visibility on the early web. The concept behind LinkExchange was simple yet innovative for its time, enabling small website owners to gain exposure without the need for significant advertising budgets.

History

LinkExchange was launched in 1996, at a time when the internet was still in its infancy and online advertising was not as sophisticated or as pervasive as it is today. The founders, Tony Hsieh and Sanjay Madan, were recent graduates who saw an opportunity to help webmasters increase traffic to their sites through a reciprocal advertising system. This system allowed members of LinkExchange to display advertisement banners for other member sites, in return for their ads being displayed across the network.

The service quickly gained popularity, growing its membership to over half a million sites. This rapid growth attracted the attention of major companies, leading to Microsoft acquiring LinkExchange in November 1998 for $265 million. The acquisition was part of Microsoft's strategy to enhance its online advertising capabilities and to integrate the service into its MSN network.

Services

LinkExchange offered several services aimed at increasing a website's visibility. The most notable of these was the Banner Exchange Program, which allowed websites to exchange banner ads. Members could earn credits by displaying banners on their site, which could then be used to have their own banners displayed on other sites within the network. This system was designed to ensure that all members received fair exposure.

In addition to the Banner Exchange Program, LinkExchange also offered services such as the CustomLink service, which provided members with tools to create their own web directories, and ClickTrade, a program that allowed members to earn money by referring traffic to other sites.

Impact

The success of LinkExchange demonstrated the potential of online advertising and played a significant role in its evolution. It showed that the internet could be a viable platform for advertising, paving the way for the development of more sophisticated online advertising technologies and platforms. The concept of a banner exchange network also introduced many webmasters to the basics of online marketing and the importance of web traffic.

Legacy

Although LinkExchange was eventually phased out by Microsoft in the early 2000s, its impact on the online advertising industry is undeniable. It was one of the first companies to recognize and capitalize on the potential of online advertising, setting the stage for the development of the digital marketing landscape. The founders, particularly Tony Hsieh, went on to pursue other successful ventures, with Hsieh becoming well-known for his role in building Zappos into a billion-dollar online shoe and clothing retailer.

See Also

• Online advertising
• Banner ad
• Microsoft
• Zappos