Magazine article Marketing

Andrew Walmsley on Digital: Newspaper Ad Relics Die Hard

Magazine article Marketing

Andrew Walmsley on Digital: Newspaper Ad Relics Die Hard

Article excerpt

If newspapers can learn anything from their digital rivals, it is how to synchronise their ad sales.

A cross business, the 80s brought a widespread sweeping away of old-fashioned, inefficient paper-based systems.

Big Bang took the City of London into electronic trading in 1986, shaking off the old-boy networks that had caused it to fall behind in the global finance market, and dramatically strengthening its global competitiveness.

Electronic data interchange was introduced by big companies to facilitate the exchange of standardised documents such as invoices, allowing computers to talk directly to each other without human intervention.

While open outcry in the City and paper documentation in commerce had been the way things were done for hundreds of years, neither was an activity that added value. Standardising and computerising these tasks radically reduced supply-chain costs, as well as speeding up business processes.

In the media sector, online has learned many of these lessons and led the way.

While cost-effectiveness has fuelled attractiveness to clients, management of transaction costs has been a key factor in agencies' adoption of online. Third-party ad serving, standardisation of ad sizes and the introduction of ad networks and exchanges have driven down costs, enabling billions of ads to be targeted individually, without losing track of them.

This focus means big media owners can generate marginal revenue from remnant inventory and small owners can reach markets without scale.

Investment has been heavy in systems to support this, and even media brontosaurus Donovan Data Systems has announced a US joint venture with media network the Rubicon Project to join the party.

It's not just in online media, though, that electronic data interchange has enabled a market to develop.

As a TV buyer in the early 90s, Sky used to send over faxes of airtime for my clients. In those days, fax machines operated with rolls of paper; and I would often get 20ft lists of spots, each attracting a negligible audience to TV coverage of log-rolling from Arkansas.

I would wait a couple of hours, then call to complain about how awful the airtime was. It was impossible to analyse this quantity of spots, so bluffing was the only option.

Now, all that information is transferred using Caria, a system that connects buyers to sellers, synchronising systems so they can focus on deal management as the number of channels proliferates.

In radio, the Jet system helped to make the medium easier to buy, and contributed to a substantial uplift in its market share after its introduction. …

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