Cable networks abandon eBay ad project

Cory Bergman April 5th, 2007

Cable networks Discovery, Turner, Lifetime and ESPN have decided to boycott an online ad buying exchange for TV spots under development by eBay because they say it goes too far in removing humans from the equation. Specifically, they worry that the exchange would remove creativity and reduce everything to volume, demographics and price — which would ultimately lower their return. “The grand majority (of ads sold today are) about idea-driven packages that have got multiple consumer touch points,” said Sean Cunningham, president and chief executive of the cable association. While this is true, many cable nets are still awash in inventory and could use the exchange to fill remnant advertising — which has nothing to do with idea-driven packages. In my humble opinion, their boycott is likely more about a fear of losing control (to the bidding process) than it is about the strength of concept. But that’s just me.

2 Comments Add your own

  • 1. Dave  |  April 6th, 2007 at 5:56 am

    Sounds like somebody in the sales department found out about this project… :-)

    I think for smaller, niche products, something like that could work. We thought of developing that same idea four years ago when I was in college for our student television so anyone (student, organization, local biz) could buy an ad easily and target exactly who they wanted. Plus, we had a lack of students wanting to be account execs (go figure) so we had to think of an different way to sell ads. Ultimately, it fell to the back burner.

  • 2. invitedmedia  |  April 6th, 2007 at 6:38 am

    “they worry that the exchange would remove creativity…”

    a feature the current system has already done all by itself.

    remember any of this year’s super bowl ads?

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