• by David Goetzl  @dgoetzl, March 2, 2007

LAS VEGAS -- Marketing and agency executives looking to jump-start a much-hyped online buying and selling system for TV time did their best this week to dampen expectations, while emphasizing that the service will launch in a rudimentary test mode.

"It's a test, guys," PHD chief Steve Grubbs said with palpable exasperation at an AAAA media conference panel. "I can't understand the huge reluctance to just test this ... it's not the anti-Christ." Grubbs, joined by other steering committee members, was talking about the eBay Media Marketplace. And to hammer home the point that it's a test, they repeatedly referred to the system as e-media "1.0."

"We just want to encourage people to give it a shot," said Howard Rosenberg, the eBay executive who is spearheading its infrastructure development.

A pilot version is apparently ready or nearly ready to go--and marketers have assembled, or apparently are near assembling, a pool of dollars to spend in the test version. What once was presumed to be a $50 million figure, however, is now uncertain.

The e-media exchange has caused something of a ruckus in the industry as sellers have resisted a system they say would commoditize their business, while thwarting much of the face-to-face deal-making they've relied on for half a century.

In his 30-year career, Grubbs said, "I have never seen a topic that has been more of a lightning rod for controversy ...we've not done a good job explaining what this is all about." It's an "adjunct" to the current system, not a replacement. The upfront wouldn't be revamped.

In fact, sellers have been so resistant that none have publicly indicated even a slight inclination to sign up and sell spots to the willing buyers. The steering committee is looking to launch its beta version this spring with national cable networks transacting with marketers such as Home Depot and Microsoft.

But what if no sellers take the plunge? "Without the sales side and their support and input," said Grubbs, "this just doesn't work."

Nonetheless, networks are expected to undergo an evaluation of the test version--perhaps an actual electronic demo--next week, according to Rosenberg. The system has been built with flexibility in mind, so networks or buy-siders can suggest changes that can be installed. Over time, the marketplace will determine how much transparency buyers and sellers want "public," such as what deals are made and at what price, he said.

Rosenberg emphasized the system is not a fully impersonal interaction between buyer and seller. For example, a seller can generate a media plan based on a buyer's specifications, then attach the file and send back for evaluation. An e-mail-based communication can occur, but a commitment on either side would not be required.

The system has already received considerable attention. Two years ago, then-Chrysler marketing executive Julie Roehm essentially called for an end to the upfront and a NASDAQ-style auction for spots. While referencing the "infamous Julie Roehm speech," Grubbs and others behind the exchange said none of those transformative plans are on the board.

Joining Grubbs on the panel to discuss the e-marketplace were fellow steering committee members, including marketers from Home Depot and Microsoft and fellow agency executives Ray Warren of Carat and Zenith's Peggy Green.

"I don't know how anyone would want to resist a more efficient, effective way to do business," Warren said.

"We should not be intimidated by it ... phones still will work," Green agreed. "This is just a way of communicating electronically."

How will marketers evaluate whether the system is worthwhile?

Backer David Grubb, media director at Microsoft, said he'd look at whether it frees up "bandwidth so we can get more time for things that matter," referring to the system's potential to facilitate run-of-the-mill purchasing of spots to clear time for negotiations on complex, multi-platform deals.