US advertising is preparing for a major transformation of its business practices with the launch of new technology allowing electronic ad trading across media. The American Association of Advertising Agencies (AAAA) said on Wednesday that it is adopting a new online database allowing ad buyers to quickly connect with on and offline media companies.
Buyers using the network will be able enter the broad dates, budgets and target demographics that they are hoping to reach. Media providers will then review the demands, or alternatively can auction off their space to the highest bidders.
We are one of the biggest industries that does not have [electronic trading] right now," admitted vice president of AAAA member services Michael Donahue to news.com.
An initial campaign to digitise US media networks was ambushed by the economic downturn and dot com bust of 2001 and has since struggled to make headway.
The massive switch to online marketing in recent years has made electronic trading inevitable if the industry hopes to be able to deal with the massive proliferation of outlets, Mr Donahue added.
The AAAA is also establishing a sub-category exchange that will deal exclusively with mobile devices, it said at its annual Media Conference and Tradeshow in Las Vegas.
The need to break down the distinctions between old and new media brokerage has been demonstrated by some of the online market-leaders increasingly trading in offline advertising.
Marketers such as Lexus, Hewlett Packard, Microsoft and Home Depot have so far signed up to the network, but no cable networks have yet joined.
