MSO Observation: My post about a new paradigm of national sales in radio is less than a week old (Google strikes advertising deal with XM) and already there is another potential contender on the horizon. From today's Media Life Magazine Online:
New online ad-buying system gets up and running
With the broadcast upfront safely behind them, the group of advertisers behind a pilot online auction site for buying ad time have now put the project in gear. They have launched a registration site, admarketpilot.com, and already have commitments from advertisers including Wal-Mart, Toyota's Lexus, and reportedly Microsoft, Hewlett-Packard and Home Depot. Dubbed e-Media Exchange or Media Marketplace, the eBay-developed site is expected to function similarly to eBay's auction offerings. Companies involved have already committed at least $50 million to purchasing ads through the exchange, which could be functioning by early next year. Broadcast networks are not participating and it's uncertain which cable networks will be joining the test. But while the advertiser group first mentioned the service several months ago amid criticisms of the television upfront, they're now saying it's meant more for the scatter marketplace. The Exchange may now include ad space in other media as well.
At the moment, it's all about TV - but this would be an amazing way to manage a radio station's national inventory. Especially in an an environment where pricing and audience information could be accessed much more quickly. New paradigms most often are not home grown - they usually come from some place out beyond left field. MSO
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