eBay ends online ads sales system

eBay has pulled the plug on Media Marketplace, a controversial pilot program designed to buy and sell radio and TV advertising on the Internet. The Internet auction house confirmed the closure of the program after one year with the brief message: "We have ended our pilot program in this market."

The system got off to a rocky start, receiving little support from the cable network industry and none at all from the broadcast networks, according to a report in AdWeek. The Cabletelevision Advertising Bureau refused to endorse the system, and only a few of its members--notably Oxygen and Ion--participated in the system. Many complained the system commoditized television ad time.

Last October, eBay officials issued a statement saying, "We've been disappointed by the lack of broad engagement by cable networks. This has caused the initial testing to be slower than expected."

While eBay has abandoned its efforts in selling cable TV ads spots, the company has been working with Bid4Spots on a separate service for selling radio ad time. A notice on the Media Marketplace page urges users to go to Bid4Spots.com for service.

[winniepie]

I read with interest RE: the demise of the eBay ad auction model, and wanted to introduce a proven reverse auction model that actually works! It's called Smart Syndication, now in its 12th successful year. Details at www.brotherseinstien.com .

Now, our commentary on the eBay fiasco:

Going?going?gone!

Our thoughts on the flawed and failed eBay-based media auction, and why our own Smart Syndication is a better media mousetrap:

While seemingly a logical extension of emerging information technology, in our opinion the eBay-based concept was doomed to failure for a very fundamental business reason: The buyers and sellers were misidentified (essentially transposed) from the get-go. Our business model contends that it?s not commercials between programs, it?s programs between commercials, and that the only true asset in the buy/sell media mating dance is an advertiser?s shares. So, in a workable auction model, the media should be encouraged to bid up the value of your shares rather than coerced to bid down the price of their own inventory. From this proven perspective, inspired by Oscar Wilde?s sage definition of a cynic (one who knows the price of everything and the value of nothing), here?s why Smart Syndication is a much more potent variation on the eBay auction theme:

Like the eBay model, Smart Syndication features a reverse auction component. Unlike the eBay version, however, ours actually works. In fact, it always works. Over the past twelve years, our Smart Syndication spot TV/radio negotiating strategy has amassed an enviable track record of clutter-busting performance on behalf of advertisers like Wells Fargo Bank, Progressive Insurance, Subway Sandwiches, KFC, Sonic Restaurants, Sprint Long Distance, McDonald?s, The United States Olympic Committee, Miller Beer, Hawaiian Airlines, Pearl Vision, Outrigger Hotels and Resorts, NAPA Auto Parts, Sylvan Learning Centers, and many more, in numerous major markets across the country.

Success aside, Smart Syndication departs from the eBay model on several other key points:

While the eBay version seeks participation from second-tier cable networks, Smart Syndication targets local-markets exclusively ? where the bulk of commercial inventory resides.

While the eBay version as currently offered discourages and repels network participation, Smart Syndication actually compels local media franchises to participate ? enthusiastically.

While the eBay version imposes price transparency on the networks in order to drive down inventory costs (no wonder the networks won?t play along), Smart Syndication?s unique buying strategy typically generates an additional 15-25% more target coverage ? above and beyond your best negotiated deal ? per market.

While the eBay version was designed exclusively to facilitate media transactions, Smart Syndication was designed specifically to enhance performance by creating a clutter-busting, guaranteed quality programming environment inside the commercial rotation.

While eBay tacks on an additional transaction fee, our fees ? and yours ? are completely covered by existing local media budgets. With Smart Syndication, neither the acquired target inventory nor the enhanced performance will cost you or your clients a single penny extra.

Add it up: More bang ? and improved performance ? for the exact same local media buck. That?s why we ? and satisfied agency partners all across the country ? think Smart Syndication is a better media mousetrap.

Thanks,

Mike Einstein for the Brothers Einstein at The New EPA: (www.brotherseinstein.com)