eBiz for Media: Where We Are Today & the Plan to Move Forward

January 13th, 2006

Agenda

The Goal of eBiz for Media

eBiz for Media Components, Success Stories, Issues & Proposed Solutions

eBiz for Media Lab

The First Experiment

Call to Action & Next Steps

The Goal of eBiz for Media What are we trying to achieve?

• Decrease the manual work and errors resulting from paper transactions between Media Buyers & Media Sellers.

How can we do this?• Implement a two-way electronic relationship between

Media Traffic/Sales Systems & Media Buying Systems.

What are the benefits?• Reduces errors• Lowers cost for players of all sizes• Increases competition• Adjusts for changing business needs• Provides an audit trail

Where We are Now High interest in seeing ebiz succeed. High level of frustration at moving forward as

an industry. Many independent eBiz efforts in production. spotcableXML Proposals & Orders, Spot TV

XML Order & National Cable EDI Order & Invoice are only standards being widely used today.

No standards with a two-way communication are currently implemented.

Long-Term Result:Trading Partners may be condemned to having multiple systems to deal with one transaction.

Where We Need To Go

An end-to-end solution for each medium.

Critical mass using industry standards.

Long-Term Result:Trading Partners use the same methodology to send and receive any eBiz transaction in any

medium.

The eBiz for Media Components

Business Rules XML Schemas Schema Repository Communication Registry Transaction Hubs Ad-ID

eBiz for Media Critical Success Factors

Business Rules

XML Schemas

Schema Repository

Communication Registry

Transaction Hubs

Ad-ID

Systems need to be programmed to work with the standards.

Need a unique uniform asset identifier to tag for verification.

Media buyers and sellers need to be involved to define how the business works.

Technical expertise and infrastructure development lies with the vendors.

Requirements for all media will be defined; parallel effort with standards rollout will be conducted.

A process between the AAAA and media trade organizations will balance approval of changes vs. housing of standards.

Ad-ID

Unique universal code for ads across all media.

Links key information about an ad to its code.

Brings accuracy and efficiency to ad processes.

Foundation for new technologies.

Provides a common language for digital communications.

Facilitates advertising accountability.

Media Buying eBiz Successes

Universal McCann DDS Web IO for printCablesure for national cable

LCI CPE code training collaboration with station groups.

Receiving only Electronic Invoices for Spot TV

Starcom Media-In-Motion for national cable

Horizon TVB XML Standard for Orders via Strata & Spot Buy Spot

TVB XML Standard for Orders via DDSSpot Radio via Katz & Interep

ITN TVB XML Standard for Orders via DDS MediaOcean for Spot TV business and for Spot TV direct business with Harris and Tribune

Initiative Spot Radio working with Katz Media

Mid & Small Size Agency Involvement Key to eBiz for Media success Developing on a parallel path to the

effort the AAAA is pushing with larger Media Buying Agencies

Working with the AAAA Small and Mid-Sized Media Directors Committee

Agency Buying Systems eBiz Activity

DDS Tens of thousands of electronic avails

processed for Spot TV, Radio and Cable

Approximately 12 different proposal systems can send these XML electronic avails

NBC processed 9,500 DARE orders (1,500 local) in 2005, which included all order transactions

All first quarter NBC orders placed in December from GM Planworks were sent through DARE/MediaOcean

Over 11,000 WEB Insertion Orders (Electronic Space Reservations) processed in 2005; ability to accept,reject and comment

Invoice Manager now in production with eMediaTrade and testing with all other invoice hub vendors

ARBITRON –BUYING SOFTWARE

Receive invoices from any outlet or hub that is connecting to the eBiz@Arbitron hub – powered by eMediaTrade.

Via eBiz@Arbitron, can send radio orders to an Arbitron radio station using TrafficLink

Via eBiz@Arbitron can send TV orders to a TV rep firm using the Donovan/ MediaOcean Reppak system.

Via eBiz@Arbitron can send TV orders to a TV station using Spot TV industry standards.

Agency Buying Systems eBiz Activity

DATATECH SOFTWARE Datatech Software Corp. and

Donovan Data Systems have initiated a joint project to exchange DARE transactions over the Internet incorporating the AAAA XML transmission envelope.

This will allow any trading partner to conduct DARE eBusiness using robust, non-proprietary, low-cost, standards-based technology.

eMediaTRADE eMediaTRADE is an independent,

privately held hub services provider currently translating and moving invoices for cable, TV and radio as well as orders for cable.

In 2005, processed over $1 Billion worth of invoices for cable, TV, and radio

In 2005, processed over 750,000 invoices to over 800 agencies

eMediaTRADE is the hub services provider for Arbitron, Cox Communications, Wicks Broadcast Solutions, TelAmerica Media, CTV Media, Thompson Everett and other industry buyers and sellers.

Agency Buying Systems eBiz Activity

MEDIAPLEX Tested Print Insertion Order

Transmission Proof of Concept to send I/Os based on the ADsml standard.

Mediaplex agencies have the ability to transmit Print I/Os using Order Valet for Print by email with full audit history.

Local Broadcast Orders and Revisions can be transmit to stations via email (soon to make XML available) using Order Valet, with full audit history.

Mediaplex has just released eMakegoods, enabling reps to send makegoods via the internet with automated input to the buy upon buyer's acceptance.

SPOT BUY SPOT Buyer and seller side HUBs use 4A's

standards and transacts over 100,000 e-orders annually

Includes new order, revisions, cancellations and makegoods

Deliver over 400,000 spot media e-invoices annually to all major agency stewardship systems partners.

In all media, deliver spot orders electronically from the rep or network, directly into the traffic systems.

Agency Buying Systems eBiz Activity

STRATA Compatible with all AAAA's/TVB’s

XML spot order and invoice standards

Full connectivity to Spot Buy Spot's Order Hub with original order, full revisions and makegoods

Connects to all major traffic systems - send orders, read inventory and clearance levels, accept invoices and logs electronically

Send and receive e-orders and e-avails using XML standards in all spot Media

Process electronic invoices from all e-invoice providers

How to Keep Progress Going

Media companies have been committed and are driving the progress.

Agencies are recognizing the need to be fully committed.

The next step is to integrate eBiz into the workflow as quickly as possible.

Specific Critical Action Items Stop paper invoices

• ANA, AAAA, BCFM, TVB: Call for the end to the practice of Notarizing invoices

Program systems to accept critical information:• Include non-airtime charges:

We will speed up reconciliation

Workflow: mandatory Client-Product-Estimate codes on invoices

Transition or internally upgrade to most up-to-date system applications (e.g., DDS Invoice Mgr)

6.   Live Reads 7.   Sports Sponsorships 8.   Multi lengths 9. Premium Pod Positions 10. Promotions 11. PSA's

1. Station web ads/banners 2. Talent fees 3.   Remote Charges 4.   Bonus Spots 5.   Billboards

Learnings

Where We Are TodayNext Steps

Speakers

ANA Barbara Bacci-MirqueMPA/Time Inc. Anne Finn, Guy GleysteenAssociated Press Paul CalouriOAAA Kim RamserIAB Jeremy FainTVB Abby AuerbachRAB Mary Bennett CAB Chuck ThompsonNCC Spot Cable Ken Little

Advertisers

ANA

Magazines

Where Magazines are Today

XML Specifications Developed• Global AdsML• IDEAlliance

Observation: Consider broad constituents• All Print• Retail• AdID

Where Magazines are Today

AdsML – E Insertion Orders• G+J/Mediaplex/Vio/QuadSystems• Time Inc./Dailey LA /Mediaplex/ Vio/QuadSystems

Learnings reinforce value of E-Biz• Speed• Accuracy• Savings

Next Steps

Two Opportunities for 2006 Testing: DDS – “Web IO” AdsML Platform

• Mediaplex

Next Steps

Organize testing with supply chain• Advertising partners • Publishers • Technology suppliers

Educational Programs Work with AAAA on cross-media XML

schema

Magazines well-positioned for 2006

Newspapers

Where Newspapers are Today Limited “direct” XML management

capacity

AdSML framework 2.0 proposed rev. 6• Print bookings, materials delivery; e-

invoicing next

• Associated Press Web IO system • Industry-owned & driven: NAA, AP• Web interface and XML-driven (AP XML)• Real-time two-way communication• System integration capability (data in/out)• 1,100 newspaper participants

Industry has embraced digital ad delivery

Industry has made a commitment to electronic insertion orders

E-tearsheets and e-invoicing beginning from several systems providers

XML standard will promote direct exchange of data between trading partners

Where Newspapers are Today

Next Steps "First-mile" & "last-mile" integration with XML

The current "infinitely flexible" rate structure • Manual review of rates still necessary

Adoption of XML standards by systems vendors and their newspaper and agency clients

E-invoicing will further automate process

Out-of-Home

Where Out-of-Home is Today

e-Business initiatives• Web-based Proof-of-Performance• Digital Mapping• Electronic Creative Testing• Web-based Inventory Systems• Web-based Proposals• Web-based Invoicing

Where Out-of-Home is Today

eBiz for OOH Can Automate Planning

• Virtual creative visualization (surround photos)• Drive-by videos• Vendor inventory

Buying• RFP, Proposals, Contract

Execution• Creative tracking (Ad-ID)

Post-buy• Online Proof of Performance• Completion report

Next Steps

The Five Year Vision: Online Media Marketplace The media planner uses online planning tool from

vendors to visualize a potential buy (inventory + virtual tours)

The media buyer then submits an online RFP Vendors respond by posting on online proposal The media buyer buys the best proposal Contracts are digitally signed Online completion reports + PoP is automatically

generated and posted Ad-ID is used throughout to track creative and

inventory XML Web services are used to manage the electronic

handshake of information over the Internet

Many types of OOH formats• Concentrate on traditional forms first• Develop a plan at a later date for

alternative formats Many different sizes of OOH

Companies Standardization is a concern

Next Steps

Internet

Where Internet is TodayS

tan

dar

d I

AB

In

itia

tive

Pro

cess

Phase 1:Define

Initiative

Phase 2:Develop

Plan

Phase 3:ImplementInitiative

Phase 4:Market

Initiative

• Defined Objectives

• Market Assessment

• SWOT Analysis

• User & Effectiveness Research Requirements

• Marketing Plan

• Research

• Draft Standards for Industry Review

• Compliance Program

• Industry Feedback

• Final Standards

• Adoption Program

• Adoption Tool

Key

P

arti

cip

an

ts&

Tim

ing

• IAB

• IAB Task Force

• IAB

• IAB Task Force

• IAB

• IAB Task Force

• AAAAs / ANA

• IAB

• IAB Task Force

• AAAAs / ANA

3 Months 6 Months 3 – 6 Months Ongoing

Standards Launch

Key

Del

ive

rab

les

Revenue Cycle: Examine business processes and issues in a holistic way, including all pieces of

business

Where Internet is Today

Online Ad Measurement Guidelines• 2002 – 2003

• IAB Measurement Task Force worked with ad-serving networks and the MRC to define how to count impression: client-side

• 2003 – 2004 • Multiple rounds of reviews with AAAA, industry vendors and

publishers, revisions, mapping followed by public comment period

• Nov 2004• US and Global Guidelines Published – set the stage for auditing

and certification• 2005

• Largest publishers with proprietary ad servers (as well as select others) agreed to get Measurement Certified

• 2006• Major proprietary ad servers, publishers to be certified

Next Steps

2006 Continued push for Measurement

Certification among all publishers and ad serving technologies

Agency and advertiser seeking compliance

Setting standards is hard work, but positive results come in market liquidity, reporting

and billing efficiency and transparency

Spot TV

Where Spot TV is Today

TVB E-Biz Committee Technical Standards Task Force

• Schema Review Committee Business Rules Task Force Joint TVB/AAAA Task Force

Completed Schema & Business Rules Avail Request and Submission Order Makegood/Revision Traffic Instructions Invoice

Where Spot TV is Today

Electronic Ordering National: Agencies/Reps

• DARE• Order Xport

Local: Direct-to-Station • XTV Project• EO initiatives

Broadcasters and sales system providers keen to partner with

buying systems to test EO.

Where Spot TV is Today

Electronic Invoicing:• 100% EI capability• Station traffic systems upgraded for CPEs

Stations eager to stop paper invoices.

Multi-Channel “Call Letters”• Joint TVB/AAAA Task Force standardizing

• Digital channels, websites, VOD, etc…

Next Steps

Electronic Ordering• XML orders using open standard hub

transport for broadcast and multi-platform buys

• Original orders…makegoods/revisions

Industry-wide Electronic Invoicing• Move to XML

• CPEs, non-airtime charges, multi-platform• Eliminate notarization• Eliminate paper, and paper “backup”

Standard “call letters” for multi-channel and multi-platform offerings

Next Steps

TVB E-Biz committees actively working on all initiatives

Participate in AAAA test lab

Ultimate Solution?

DEMAND!

Radio

Where Radio is Today

The RAB EDI Taskforce was created in 2001. This joint initiative has had steady and consistent growth and development from all vendors and the two rep firms.

In the last 18 months the Radio Industry has doubled the number of electronic invoices it has been producing. Some of our vendors have seen triple digit increases.

Examples:• The number of invoices processed through

Radioinvoices.com, a national rep firm initiative has grown 10 fold over the past year.

• They currently process about 20,000 invoices each month through this portal and that number continues to increase.

Where Radio is Today

The industry has successfully implemented electronic ordering for a number of large agencies.

They are using XML standard ordering schema to pass orders back and forth.

This is an important first step, but the invoices are not XML at this point which constrains us to invoicing straight spots only.

This is KEY for moving forward.

While much of the national business is converting to XML, the RAB is encouraging all vendors to implement both nationally and locally.

Next Steps

A genuine commitment by all parties• General adversity to change - Not only getting them to do

something new, but getting them to change their business practices.

Accommodating unique workflows at each organization

Coordination for development efforts to allow each system to integrate with the systems’ at the business partners’ end• A general misunderstanding that integrated solutions are just

plug and play and that development is needed

Acceptance of paperless invoices versus duplication of workload.

National Cable

Where National Cable is Today

Completed and coded schema for original order and invoice• Mapped schema for change/revision• Business process & use cases in

discussion Established schema change

committee utilizing SourceForge Determining test partners &

parameters

Next Steps

Breaking down the old barriers, stopping the status quo.

Stop gap measures are not the answer, they cause more issues and fragmentation.

Every agency must have a committed champion.

The time is now, the solution is here and the people in this room can

make it a reality.

Spot Cable

Where Spot Cable is Today

Over five years of experience in processing spot cable advertising using eBusiness technologies

Millions of transactions to date ranging from proposals to invoices

The industry is committed to 100% electronic invoicing

Very close and productive working relationships with all industry players

Where Spot Cable is Today

Electronic invoice delivery• Industry-owned system with NCC and

virtually all cable system operators participating

Electronic proposal/order delivery• Industry standard, spotcableXML, in place

since June 2003• Trading TAM proposals with Donovan

agencies since September 2003• Delivered through Agency.Spotcable.com to

Donovan, Strata, MRP SmartPlus, MediaLine, Datatech and Mediaplex

Next Steps

Many agency users not taking advantage of efficiencies• Application system providers work together

to solidify the benefits of coordinated technologies to users

Change request complexity• Start with simple change request messaging

using transparent technology• Follow with more complicated models

Rigid spot buying/selling systems• Create more flexible buying/selling and

verification systems to complement spot buys

What Does This All Mean?

Reinforces the need to move ahead with industry standards.

There has been a lot of conceptual work done, as well as implemented work.

We need to push harder on further industry implementation across and within media.

eBiz for Media Lab

A Place to Conduct Experiments & Share Knowledge

The Umbrella Concept

eBiz for Media

AgencyTrading Partner

Magazines

Newspapers

Network TV

Trading Partner’s3rd Party Software Provider

Trading Partner ATrading Partner B

Trading Partner C

Trading Partner D

XML Standard

s

A

B

C

D

XML Standard Package

d Message

XML Standard Package

d Message

HUB

Radio

Spot TV

National Cable

Local Cable

Media Company

Internet

Out-of-HomeDirect ResponseYellow Pages

Why Did We Create the Lab?

Schemas are built. Let’s put them into use industry-

wide. We need a place to conduct tests

with what has been built using live client data.

Then roll out into production.

Measures of Success

Long-Term Measure: Full two-way end to end electronic transactions.

Immediate Measure: In a controlled environment, conduct a transaction

with a partner, and via a hub send live client data back and forth.

Use Standard message formats. Send, deliver and acknowledge receipt of live data

between trading partners’ buying system and media sales/traffic system.

Not via email.

The Scope

Media Buying Trading Partner

Trading Partner’s Hub

Media Selling Trading Partner

Trading Partner’s Hub

Trading Partner’s System

Trading Partner’s System

Data Packaged in

XML Standard

Data Packaged in

XML Standard

Involves predefined transactions within each media where XML Standards are completed or near completion.

Data must be exchanged using a web service.

Requires an acknowledgement of receipt of data be sent from the receiving system to the delivering system with timestamp.

Performance of a manual check that data being electronically transmitted is correct is conducted.

Who Can Participate?

Any trading partner in conjunction with their software provider.

Any provider of Hub Services.

Your Role

Commit to the lab. Discuss with your

software provider what media and transactions you would like to participate in.

Determine the client data you will use.

Commit to your client. Bring technical

expertise to the effort. Determine validity of

implementing standards.

Provide feedback for making a standard workable.

Provide technical expertise to: Communicate

between Hubs. Transport data

from Hub to the Trading Partner system.

Define compatibility and interoperability issues.

3RD PARTY SOFTWARE PROVIDER

TRADING PARTNER HUB PROVIDER

What Does Testing Involve?

Trading partners register to join the eBiz Lab:• Determine which media you would like to focus on. • Identify transaction(s) you would like to test within the

medium.• Collaborate with your media buying or media sales/traffic

system software provider to review feasibility.• Determine if you have a transaction trading partner in mind

you would like to test with or if you want a partner assigned.• Decide if you will need to be set up with a hub provider or if

your software provider is going to be a hub provider.• Report back to www.ebizformedia.com to register yourself

to be part of the Lab.

Status of Business Rules & XML Schemas

National Cable

Radio

Network TV

Spot TV

Spot Cable

Magazines

Newspapers

Internet

Out-of-Home

National

Local

Global Defs & Headers

Avail Request/RFP

Proposal Order

Acknowledge

Receipt of Order

Revisions InvoiceInvoice

ConfirmationMakegoods

Legend: Business Rules CreatedXML Standards Created

What Can Be Tested in the Lab? Any of these!

National Cable

Radio

Network TV

Spot TV

Spot Cable

Magazines

Newspapers

Internet

Out-of-Home

National

Local

Global Defs & Headers

Avail Request/RFP

Proposal OrderAcknowledge

Receipt of Order

Revisions InvoiceInvoice

ConfirmationMakegoods

Legend: Business Rules CreatedXML Standards Created

When Will the Test Occur?

FEBRUARY MARCH APRILJANUARY

eBiz for Media Lab Registration Opens

1/20 – 2/3www.ebizformedia.com

Individual Media Kick-Off Meetings

scheduled throughout February

Test Coordination

& Project Plan

Testing BeginsGoal for

completion: 3-6 months

Communication Registry Requirements Definition by Medium

Meetings By Medium

Pairing off of participants Discussion of potential problems

participants anticipate might occur in communicating

Magazines February 2nd 10a – 11a MPANewspapers February 2nd 2p - 3p Associated PressOut-of-Home Tentative: Feb 8th 4p – 5p AAAAInteractive February 9th 2p – 3p IABSpot Television February 15th 2p – 3p TVBNational Cable February 15th 10a – 11a CABSpot Cable February 27th 11a – 12p NCCSpot Radio February 27th 2p – 3p KatzAll-Tech Meeting TBD

Follow-up Meeting Schedule

How Will Messages be Communicated?

Web services must be used. Lab results will be used as

knowledge bank for future rollout. Accuracy of data via electronic

messaging will be confirmed.

The Role of the AAAA

Coordinate partners within each media. Facilitate conversations between trading

partners and software vendors. Project manage the tests via detailed project

plans for each medium. Document learnings and disseminate

knowledge within the industry via www.ebizmedia.com.

Identify obstacles to successful transactions and recommend how to move forward.

Set next step goals to progress with long-term goal of 2-way electronic communication.

Communicate to others who want to participate later down the road how to get up and running.

Who is Committed To Joining?

Carat Horizon Initiative Mediacom MediaEdge MindShare Universal McCann Zenith Optimedia

Who is Committed To Joining?

Katz Media CBS Time Inc. NCC DDS

• XML Invoice Confirmation Transaction

• TVB Order V.1 XML Standard

Call to Action & Next Steps

Your Call to Action:

Register to participate in the eBiz for Media Lab at www.ebizformedia.com.

Registration will begin January 20th.

Attend your meeting(s) for the media test(s) you would like to participate in.

Commit to participating.

AAAA Next Steps:

Webcast Presentation will be held 1/20 from 2pm-4pm EST for those unable to attend this meeting.

eBiz for Media Lab:• Testing coordination• Document postings• Progress updates

Present industry progress at AAAA Media Conference.

Conduct evaluation of eBiz activity: actual usage vs. what is available.

www.aaaa.org