Auctioning Ad Time

http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=1003552272

 

Popular auction site eBay is attempting to expand into the world of media by auctioning off television ad time.  With this new service, advertisers will be able to detail the target demographic, preferred time of day, and funding available.  Conversely, television networks will be able to make time available for willing bidders.  eBay is providing an important connection between buyers and sellers of ad time.  It also collects all the information in one convenient location.  There’s just one problem: no media outlets have signed up yet!

 As of this point, the auctions are one-sided, but eBay is working on selling the idea to cable networks, which are generally smaller companies and more open to taking a risk on a new technology.

 From the point of view of the television networks (and anyone in Info 204!), eBay is providing what should be a vital new service.  Essentially what they are doing is adding many more links in the trading network for ad time.  More links provide more options, and more options provide more power.  In social networks, individuals with more friends have advantages in dependence, exclusion, satiation, and betweenness.  The concepts of dependence and satiation carry over to this type of trading network quite nicely.  A television network with more advertising options is not as dependent on any one advertiser to fill up airtime, and its available airtime will be satiated much more easily.

 Given all this information, I would not be surprised if television networks soon do begin signing up for this service, and I expect to hear more about this in the future.

Posted in Topics: Education

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