TV Advertising Auction Has Lots Of Interested Bidders, But Still No Sellers

from the slight-problem dept

There's obviously quite a bit of frustration on the part of advertisers about the way the TV ad market is run, as advertisers hesitate to commit much money to them without a better system of pricing and tracking. Now a group of advertisers (including Microsoft, Toyota and Wal-Mart) is teaming up to test an auction-based system for buying airtime, with eBay set to manage the auctions. There's just one problem: though the group is looking to launch in January, it hasn't identified a willing network to sell its ads this way. There may be a lot of interest in a better way to price airtime, but ultimately, it's up to the networks to decide when to price like this, and who they want to manage their auctions -- decisions they'll resist making for as long as possible if they see this leading to cheaper advertising. And while eBay may seem like a logical company to do this, Google wants to get in on it as well. Of course, the problem with TV advertising stems from the decline of its traditional model, so a better pricing system will only help so much.

Reader Comments (rss)

(Flattened / Threaded)

  1. icon
    mmrtnt (profile), Aug 4th, 2006 @ 10:13am

    Fave Term of the Week

    "Grumpifier Ray"



    reply to this | link to this | view in thread ]

  2. identicon
    Whatever he said, Aug 4th, 2006 @ 10:17am


    Talk about getting desperate, but I guess it will save them from paying sales reps.

    reply to this | link to this | view in thread ]

  3. identicon
    Bidder, Aug 4th, 2006 @ 11:41am

    I smell a new opportunity... eSnipe Corporate

    reply to this | link to this | view in thread ]

  4. identicon
    I wonder...., Aug 4th, 2006 @ 11:58am

    here's a thought

    Will they have BUY IT NOW 30 second spots? Or $0.01 plus $350,000 for 30 seconds at the superbowl??

    reply to this | link to this | view in thread ]

  5. identicon
    Matthew, Aug 4th, 2006 @ 12:06pm

    Re: Fave Term of the Week

    Wrong article.

    But back to topic, all the seller has to do is place large, out-of-touch-with-reality reserves on their air time and the whole thing will collapse, as Eddie Izzard puts it, like a flan in a cupboard.

    reply to this | link to this | view in thread ]

  6. identicon
    Ricky M., Aug 4th, 2006 @ 6:41pm

    Why don't they....

    have no actual commercials. Instead they could have the advertising at the bottom of the screen much like they are already doing.. You know when you are watching a program and a graphic (usually animated to get your attention) says "You're watching whatever... Next is another boring show" or whatever instead let advertisers buy this space. I bet you people would see it because they are not going to stop watching television and it would completely stop the TiVo crisis of people forwarding through the commercials. Strategically place them at points in a program you know someone doesnt want to miss. So long as they are not overly intrusive, it wouldnt bother me. No split screen stuff

    reply to this | link to this | view in thread ]

  7. identicon
    joe, Aug 4th, 2006 @ 8:37pm

    TV Ad Auction

    It will work like the old reselling long distance. These guys make bulk buys they can then resale.

    reply to this | link to this | view in thread ]

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