Major U.S. Advertisers Aim To Drive Down Advertising Prices
advertisers have joined forces to create and test an online
marketplace for buying advertising time. It�s a move that could
revolutionize the way billions-of-dollars of ad revenue is spent,
and could shift the bargaining power to advertisers.
Wal-Mart Stores, Microsoft, Hewlett-Packard and Home Depot, among
others have put up a combined $50 million. They have enlisted eBay
to build an auction site, called e-Media Exchange, that would sell
national ad time on a yet-to-be determined cable network in a test
tentatively set for January 2007.
Their goal? To
make the ad-sales market transparent. The new system would allow
advertisers to post media plans on the auction site, and invite bids
from networks and media outlets.
proposal evolved from former Chrysler marketing chief Julie Roehm,
who made a speech at a media-industry conference in 2004. Roehm said
an automated trading system akin to the Nasdaq Stock Market could
replace the upfront market rituals, in which ad bargaining takes
place in May for the upcoming fall TV season.