• Adweek, Friday, August 4, 2006 11:33 AM

eBay is bringing its auction format to the ad world by connecting buyers and sellers of TV advertising in an online exchange. The auctioneer is currently testing the new service, called the E-Media Exchange, with leading marketers, agencies and cable networks, including Lexus, Wal-Mart, Intel, Hewlett-Packard and Microsoft. These companies are set to spend around $50 million combined to purchase ads on the exchange, which is supplied and managed by eBay. Few details about the logistics of the new program have been supplied, indicating that it still needs to be worked out. Adweek reports that a steering committee will meet in September to set ground rules for the exchange. The test is located at www.admarketpilot.com. Marketers emphasized that the E-Media Exchange is not meant to be a replacement for the annual TV upfront, during which advertisers buy 75 percent of their ads for the upcoming season. Of course, it is. Marketers have been crying for a more accountable way to buy television for decades. This move is intended as a first step in establishing a market value for TV spots, based on demand. And given its flagging stock price, eBay--perhaps more than anyone--hopes its system replaces the upfront someday.

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