By DITA DE BONI
When New Zealand's first live trading marketplace for media buying and selling was launched this week, more than 70 per cent of media buyers had signed up to use the site.
Fewer media sellers - media outlets who will fork out commission to finance the site -
have signed up to the Media Shop as yet, but are expected to do so as the benefit of business online is proved, the site's general manager says.
Scott MacDonnell says he is confident that XS-Media will improve this country's media buying process by using Internet technology to "provide a communications platform for media buyers and sellers to seamlessly transact internet space."
Translation? You can now buy an ad space on television, radio or in the paper over the internet. Real media convergence, like.
The market for media buying is $1.42 billion in NZ. The Media Shop has signed on a potential $50 million slab of business from the likes of Prime Television, TV4, IT Media. It will make around 5 per cent commission on transactions, payable by sellers. The service is free for buyers.
With the 24/7 buying and selling function of Media Shop, the site also hosts a directory of media buyers and sellers, and industry news.
XS-Media hopes eventually to connect with "back ends", or inventory and financial management systems of agencies to integrate the entire process "but it's probably a long way down the track."
The classic question put to Mr MacDonnell, the one about how this newfangled way of doing business may put this country's media sales force out to pasture, elicits a laugh.
" It's just streamlining their job. The sales reps for TV4, for example, still have to sell and promote the channel; they still create the packages and promotions to sell the space."
"In the long term it may reduce the need for so many media planners and buyers, but that is fairly well down the road."
Colenso BBDO media director Peter Myles says media is a thinking business with a premium on brains and "by definition, we favour any system that streamlines the process of transaction."
The Media Edge general manager, Dale Spencer, says online media buying, as a concept, is a great idea that has proven successful in the US.
Links
XS-Media
By DITA DE BONI
When New Zealand's first live trading marketplace for media buying and selling was launched this week, more than 70 per cent of media buyers had signed up to use the site.
Fewer media sellers - media outlets who will fork out commission to finance the site -
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