I'm told that the next new thing in the local television business could be a way to order advertising spots electronically without ever talking to a salesperson.
The system -- called E-port -- is no secret. It opened for business late last year, though it is still in the rollout phase, with a robust participant base of 649 local stations, which has since grown to more than 700. Full electronic ordering and billing is to come later this year.
Essentially, the online placement minimizes the cost of sales and eliminates much expensive paperwork. Placements on regular broadcast and related online sites are possible.
A recent Broadcast & Cable
takeout on E-Port, offered by the Television Advertising Bureau, makes the case that this will be a high-impact venture. According to the bureau, 80% of spot ad placements are still done by fax, and with errors a contributing factor, 85% end up as contested billings. The bureau also estimates that on these deals agency, media buyers and sales professionals are spending up to 60% of their time on paperwork.
The change theoretically frees up that time on all sides of the transaction for planning and negotiations. But it is easy to see the possibility that it could pave the way for some reduction in sales force and discounted rates to participants.
It is a variation on an idea highlighted in a well-received presentation from CEOs in other industries at the Capitol Conference newspaper convention last week. Stephanie Burns of Dow-Corning said that her company assessed the market and has since successfully launched an electronic-only ordering system for price-conscious buyers of its glass and plastic products. Essentially, they sacrifice some service to save money.
Is the same kind of initiative likely in the newspaper business? The
Yahoo Partnership and
quadrantOne platforms, among other ventures, aim to simplify ordering national placements online. So does a recent effort of the Newspaper Association of America, called
Rapid Easy Buy, which provides one order placement for unusually shaped ads in participating papers.
There is a hitch, though. Marty Petty, publisher of Poynter's
St. Petersburg Times, pointed out to me in an e-mail, that a no-human hands approach runs counter to the big newspaper industry effort of recent years to offer varieties of niche publications in print and online. A good "consultative" salesperson can help a customer sort through the options and pick a combination that matches marketing objectives.
