Cable Ad Bureau Pulls Out Of EBay Ad Exchange
That was a short relationship … In a blow for the nascent eBay Online Media Exchange, the Cabletelevision Advertising Bureau announced today that its members will not participate in further trials or usage of the exchange effective immediately. From the statement by Sean Cunningham, president and CEO of the CAB: “We appreciated the opportunity to test the system
The sooner ad agencies and media company ad sales departments realize that they have too much overhead to sell advertising on the web at a profit, the better off they will be in the long run. With only a handful of exceptions, web audiences are both too fragmented and too fickle for humans to sell. Furthermore, computers are simply vastly superior at matching the exactly the right ad ad the right time to the right consumer, improving ROI for the client and generating more income at less expense for the publisher.
If these guys ever want to make money from online ads (which is something they are certainly not doing now), they should embrace these technologies, and start reducing sales team headcounts.
Our agency is developing an ad exchange system for our own clients to use. The idea is to streamline the process for certain types of products that may not need as much hands-on service to manage. For example, we have a client who requires banner ads and streaming video ads on sports sites.
We have suppliers who offer remnant and last minute available banner and pre-roll advertising on sports related sites. The dollars involved are such that to add another 'layer' in the transaction AND have people involved in the presenting, booking, billing, posting…doesn't make financial sense.
The total value of each transaction is under $2,500. By automating the ordering, paying and processing of the transaction, we can look at a 5 – 7% transaction fee (not the traditional 15% or other consultation fee) and still look after the business for our clients.
The cable people will need to accept this system or create their own system. The market will create the need for an automated transaction based advertising selling system….and the market will do this with or without the Cable Ad Bureau.
Mitch Drew
President
BECK Agencies
http://www.beckbc.com
http://mitch-tv.blogspot.com