CABLE NETWORK EXECUTIVES WERE CAUGHT off-guard by the proposed eBay auction system because of one glaring component: the price.
Which explains, in part, why the Cabletelevision Advertising Bureau (CAB) rejected the idea. Participating cable networks would need to pay a 2% fee for each transaction–an enormous price, said one veteran cable advertising sales executive. “Two percent is huge,” says Bill Abbott, executive vice president of advertising sales for Hallmark Channel. “We live and die on those 2% to 3% percentages. For the media agencies, it’s the same thing–living in those margins.”
Still, the CAB said it hopes to find a better approach to electronic media buying. For the last several weeks, cable executives have been analyzing the eBay system. Beyond price, there were other, deeper issues. First and foremost, cable network executives didn’t think the system was sophisticated enough.
MediaPost Publications - Despite Problems, Cable Execs, eBay Stunned By Rejection - 04/09/2007
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