E-Business An Urgent Priority For Media Industry

The media industry needs to expedite its transition to electronic trading systems, according to some of the American industry’s biggest players, with internet-based transactions holding the key to cost-cutting and efficiency.

Speaking at the American Association of Advertising Agencies’ annual Media Conference and Trade Show in Orlando this week, Greg Smith, CIO of McCann Worldgroup, said the development of standardised electronic systems is critical to the creation of an orderly trading environment, with a reduction in errors from current systems of paramount importance.

“If we don’t do this, things like the online selling of media on eBay will happen,” he explained, referring to a recent invitation to eBay from the Association of National Advertisers to eBay, inviting the auction specialist to pitch ideas for an electronic trading system for media.

Kathy Crawford, president of local broadcast for MindShare, added that although some electronic systems are under development in America, slow progress means that these are still error-prone, leaving planners and buyers “living in terror” when using them.

Marisa Kabasinskas, a principal at 4 Strong Consulting was more optimistic, however. The media specialist, whose firm runs an electronic trading system for the American Association of Advertising Agencies, described the transition to E-business as “a doable thing.”

“There are many other industries that conduct business electronically that are more complicated than the advertising industry,” she told media executives on the first day of the conference, before predicting “success in some media and two-way transactions” within two years.

E-business in American media trading hit headlines earlier this year, with Google’s acquisition of dMarc Broadcasting, operator of automated advertising delivery platforms in the US, allowing users to schedule and implement radio advertising airtime (see Google Enters Into Radio Advertising Market).

In the UK, the media industry seems more focused on the transition to E-business, with the J-ET system already handling over 80% of all national radio revenue. The system, which recently expanded into Scotland (see Radio Trading System J-ET Expands Coverage To Scotland), sees full use at major sales points in London, Manchester, Leeds and Birmingham and at 21 of the top 25 media agencies.

American Association of Advertising Agencies: http://www.aaaa.org