• by David Goetzl  @dgoetzl, June 19, 2007

After months of struggling to gain traction, the eBay-powered system for buying and selling TV time has some life. Oxygen, the one cable network to agree to use the trading system, has begun a trial effort with at least one advertiser.

No deals have been cut, but the female-targeted network may be on the brink, according to its new executive vice president of ad sales Mary Jeanne Cavanagh. (On Monday, on the eve of the upfront, Oxygen announced that Cavanagh had been elevated to the position from senior vice president, national ad sales after five years with the network, now in some 73 million homes.)

Oxygen's participation in the eBay Media Marketplace--first reported by The Wall Street Journal--is intriguing on several levels. First, it's doing so after the industry trade group it belongs to--the Cabletelevision Advertising Bureau--denounced the system and advised its membership to refrain from any involvement. Some networks felt it would reduce their inventory to a commodity.

Second, as the only network participating, it could reap a windfall. Many large advertisers are eager to engage in the online buying, but so far there is just one network to buy from. Furthermore, some of the advertisers backing the system, such as Home Depot and H-P, appeared to be angered by the CAB's sudden move to repudiate the exchange--and have indicated that they reward networks that sign up.

Cavanagh said she's heard talk that other networks are considering it, although none have come on board. "If some join, great," she said. "If not, it's more money for us." The Journal reported that participating advertisers have assembled a pool of up to $8 million for the trial, although that doesn't mean all will be spent.

The CAB has been a good partner and "wonderful organization," she emphasized, adding that the decision to work with advertisers on a test of the eBay exchange was a unilateral decision on the network's part. It was done largely because Oxygen views itself as being on the cutting edge of technology. Also, it's a potential new business avenue. Cavanagh said the network is mostly sold out, so it's not an attempt to unload "remnant inventory."

"We're a very technology-focused company ... it's new technology, and the way of doing things is changing," Cavanagh said.

Calls to CAB were not immediately returned.

Cavanagh assumes her new role at an important time for Oxygen, which has made strides since its initial stumbles after its 2000 launch. Distribution of some 73 million gives it a solid footprint, and it has been increasingly aggressive at launching original programming on-air that hones in on the 18-to-34 and 18-to-49 female target. The net is also building out its Web and mobile extensions with a social-networking umbrella.

As for Cavanagh's arena, Oxygen saw ad revenues rocket some 48% in 2006 to $102.1 million--up from $69.1 million in 2005, according to TNS Media Intelligence.

The former MTV Networks sales veteran said part of the reason is the result of Oxygen attracting new advertisers in categories such as banking and automotive, as well as some new business in the movie area. The network has gone "beyond chick flicks" into horror and other genres.

As for one of the more hot-button issues in the coming upfront--will Oxygen make deals based on commercial ratings? Cavanagh said the network has made a decision, but she declined to reveal it. She did say that Oxygen researchers have placed a "use with caution" tag on the new ratings. But at the same time, the network is focused on meeting client needs.

The CAB and cable networks have raised issues about the accuracy of the commercial ratings data, and expressed concern about using them for deal-making this summer. Yet, NBC Universal's cable networks employed them in a deal with GroupM that was announced last week.