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"Koeppel Direct's media buying expertise has played an integral role in making my company successful. Koeppel generated so much business for our company, occasionally we have to limit their media buys, in order to handle all of the new business." | |
| - R. Gregg Marketer of Senior Products |
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MEDIA BUYING DIRECT RESPONSE TELEVISION (DRTV) ARTICLE ...... |
Ready to Buy TV Time on eBay?
By: Peter Koeppel
Published: 09/06 - ERA |
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Nine major advertisers have banded together to create e-Media Exchange, which will be
an automated auction exchange where advertisers will be able to buy broadcast TV, cable, radio and print ads.
The initial focus will be on national TV buys. The pilot program for this "NASDAQ-like" concept will be
tested early next year. The marketers that formed this exchange include advertising heavy weights such as
Wal-Mart, Home Depot, Hewlett-Packard Toyota and Home Depot, among others. They have put up $50 million to
fund the exchange and they are looking for other advertisers who want to participate.
Advertisers formed the e-Media Exchange because they have become frustrated with the way TV networks control
when they release advertising inventory. They also feel that the current pricing system is not based on demand,
rather on what advertisers paid in the past, according to the Wall Street Journal. The advertisers
have said that the exchange will be a supplement to the current upfront market and is not intended to replace
the current system of media buying. However, the TV networks have expressed their opposition to this exchange
and are determined to fight it. One of the reasons cited for moving ahead with the project is to counter
Google's expansion into selling traditional media such as radio and magazine space, according to the
WSJ.
The system should not pose a threat to media buying firms, since the proliferation of new types of digital
media makes it more important than ever to have a media expert evaluate, negotiate and buy the best media for
their clients' advertising campaigns. However, some of the largest media buying firms on Madison Avenue are
also leery of an auction system that "puts everyone on an even footing," because it would take away the
leverage of advertisers that spend hundreds of millions of dollars a year, according to the WSJ. The
advertisers and agencies involved in the project feel that the program would initially be a source for
buying inventory on smaller cable networks and lower demand overnight TV advertising. The group has had
preliminary discussions with the Discovery networks and intends to talk with other networks, according
to the WSJ.
It seems to me that the development of this type of exchange is long overdue. In my opinion, it will provide
advertisers and media buyers with more control over media pricing and inventory. It will also allow
advertisers and agencies to purchase media more rapidly, without the need for long rounds of negotiations.
This is good news for DRTV advertisers, who have seen media rates escalate rapidly over the last several
years, which has made it harder for shows to pay out. The type of inventory the exchange will be selling
should be attractive to DRTV advertisers. Stay tuned for more news about this exciting new development in
the media buying process.
Click Here to view the entire article
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