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Wal-Mart's online auction to shake the foundation of television advertising

Transactions and sold. However, the operability is not strong, but also by a variety of factors,[link widoczny dla zalogowanych], the plan was shelved. Now a feasibility study, this situation changed. Because, this time an active advocate of the world's largest retailer Wal-Mart. The senior vice president of marketing communications will be with several other large manufacturers to jointly invest $ 2,000,000,000 of the media budget, lay the foundation for the online auction system. Moreover, online media trading system has to develop the road Google will also become one of technology partners, will establish the technical level for the Wal-Mart's online auction system to provide technical support. TV ads this powerful media monopoly operating mode, once a year television advertising trick is 40 years of traditional marketing methods remain unchanged. Wal-Mart hopes to break a new model with this situation, so that the old media in new media under the new operational environment. Now, the endless choice of video programming, and increased media agency media buying operation and management more difficult. Therefore, this new auction system, a corresponding increase in demand. However,[link widoczny dla zalogowanych], it is not perfect, it can not replace the existing media buying system. In fact, the new system is more likely to be the existing market into two. Those essential to the popular drama,[link widoczny dla zalogowanych], such as the crime scene and American Idol and so on, will the existing complex multi-level 2007.4 98 international advertising media buying system, the focal point. At the same time, the program will shift to less demand for online auction system. In addition to Wal-Mart, the participation in the establishment of such auction system vendors including Microsoft, HP, Lexus, Philips and every food rich. Wal-Mart needs to find at least four companies, each company to invest 50 million U.S. dollars,[link widoczny dla zalogowanych], plans to be successfully implemented. Of course, the money was originally used only for pre-test project, and a cable television station may only cooperation, through the new online auction system to sell their advertising time. Obviously, this is a simple and practical test methods. Initially, the auction program makers keen to explore behind the scenes, the new system to replace the existing media buying patterns, then they began to explore the possibility of dealing with the broadcast networks, the end result has reversed course and passed the smaller projects,[link widoczny dla zalogowanych], namely the test digital cable network advertising time. Senior Vice President of divergent Groupe, commented: vendors see the value of the system. Chrysler's executive director made it clear that: and let us spend more targeted media. stage, better learning and thinking. Kellogg North America Division senior manager advertising media questioned, he did not believe the online auction will facilitate the process of media buying. He said the online auction spent a lot of the necessary communication process, the potentially complex transactions into a commodity. Taco Bell's vice president also questioned: It will firmly oppose the idea. P & G has been formed in the media buy the best economies of scale, as the largest TV market players do not want to see P & G must be someone else carve up their own vested interests. The deliberate decision of small firms are also reasonable. A pharmaceutical company's marketing officer, said: Hewlett-Packard, they are big companies in the food chain. in the pharmaceutical industry, our advertising spend only one-tenth of Pfizer. So I do not think we want to win the bid. that the television advertising space auction marks the traditional end of the old media. Traditional media feel the pressure, they have a monopoly of resources as a threat to the auction. But Wal-Mart believes that fear is human, but the new model is another way to approach customers. When at the beginning of any innovation, will face difficult challenges. Regardless of its prospects, the traditional purchase and sale of advertising in an irreversible manner. / A