• by Joe Mandese , August 4, 2006

A Madison Avenue task force Friday officially announced plans to test its so-called e-Media Exchange in early 2007, and confirmed that eBay will provide the framework for the system and will serve as its technology supplier.

The exchange, which grew out of former DaimlerChrylser executive Julie Roehm's (now with Wal-mart) plea to test a "Nasdaq-like" concept for buying and selling media, has grown into a coalition of advertisers and agencies, but sill faces stiff opposition from media sellers, particularly big TV network executives who have vowed not to support it. A concurrent effort is being made by top agency executives to communicate and educate the media on why the system will not threaten to "commoditize" their advertising inventory and why they should participate in the test.

"The pilot is a result of a grass roots initiative to explore ways to maximize new technology in order to enhance the current media buying system," the coalition said in a statement released early this morning. "It reflects an evolution of the industry and another potential way for buyers and sellers to efficiently facilitate media transactions."

The coalition said leading marketers in the automotive, consumer goods, retail and technology categories have already agreed to participate in the pilot to test the viability of buying media via an electronic system, and that the system would be secure, private and would protect "participants' need for confidentiality.

To help recruit other interested parties to participate, the group launched a new website -- www.admarketpilot.com -- where they can register and receive news updates on the project.

The group said a variety of media are under consideration for the test, but it is expected to focus on national TV advertising buys. Executives involved in the project have said they expect the project to be supported by smaller cable networks who likely would be less concerned about having their inventory commoditized in an electronic trading system.

"The pilot will be an adjunct to the existing media buying system, not a replacement for the upfront market," the coalition's statement read.

Details about how the system would actually work, were not disclosed, but the group noted that eBay's private marketplace platform has been successfully providing customized private label marketplaces for third parties in other industries for years.