eBiz for Media: Where We Are Today

1
eBiz for Media Where We Are Today the Plan to
Move Forward

• January 13th, 2006

2
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

3
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

4
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.

5
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.

6
The eBiz for Media Components

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

7
eBiz for Media Critical Success Factors
Media buyers and sellers need to be involved to
define how the business works.

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

Systems need to be programmed to work with the
standards.
A process between the AAAA and media trade
organizations will balance approval of changes
vs. housing of standards.
Requirements for all media will be defined
parallel effort with standards rollout will be
conducted.
Technical expertise and infrastructure
development lies with the vendors.
Need a unique uniform asset identifier to tag for
verification.
8
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.

9
Media Buying eBiz Successes

• Universal McCann DDS Web IO for print
• Cablesure 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 DDS
• Spot 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

10
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

11
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_at_Arbitron hub powered by
  eMediaTrade.
• Via eBiz_at_Arbitron, can send radio orders to an
  Arbitron radio station using TrafficLink
• Via eBiz_at_Arbitron can send TV orders to a TV rep
  firm using the Donovan/ MediaOcean Reppak system.
• Via eBiz_at_Arbitron can send TV orders to a TV
  station using Spot TV industry standards.

12
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.

13
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.

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Agency Buying Systems eBiz Activity

• STRATA
• Compatible with all AAAA's/TVBs 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

15
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.
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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
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Learnings

• Where We Are Today
• Next Steps

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Speakers

• ANA Barbara Bacci-Mirque
• MPA/Time Inc. Anne Finn, Guy Gleysteen
• Associated Press Paul Calouri
• OAAA Kim Ramser
• IAB Jeremy Fain
• TVB Abby Auerbach
• RAB Mary Bennett
• CAB Chuck Thompson
• NCC Spot Cable Ken Little

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Advertisers

• ANA

20
Magazines
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Where Magazines are Today

• XML Specifications Developed
• Global AdsML
• IDEAlliance
• Observation Consider broad constituents
• All Print
• Retail
• AdID

22
Where Magazines are Today

• AdsML E Insertion Orders
• GJ/Mediaplex/Vio/QuadSystems
• Time Inc./Dailey LA /Mediaplex/
• Vio/QuadSystems
• Learnings reinforce value of E-Biz
• Speed
• Accuracy
• Savings

23
Next Steps

• Two Opportunities for 2006 Testing
• DDS Web IO
• AdsML Platform
• Mediaplex

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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

25
Newspapers
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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

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Where Newspapers are Today

• 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

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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

29
Out-of-Home
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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

31
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

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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

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Next Steps

• 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

34
Internet
35
Where Internet is Today
36
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

37
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

38
Spot TV
39
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

40
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.

41
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

42
Next Steps

• Electronic Ordering
• XML orders using open standard hub transport for
  broadcast and multi-platform buys
• Original ordersmakegoods/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

43
Next Steps

• TVB E-Biz committees actively working on all
  initiatives
• Participate in AAAA test lab
• Ultimate Solution?
• DEMAND!

44
Radio
45
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.

46
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.

47
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.

48
National Cable
49
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

50
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.

51
Spot Cable
52
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

53
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

54
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

55
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.

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eBiz for Media LabA Place to Conduct
Experiments Share Knowledge
57
The Umbrella Concept
eBiz for Media
Media Company
Trading Partner A
Trading Partner B
Trading Partner C
Agency Trading Partner
Trading Partner D
XML Standards
National Cable
A
Network TV
Spot TV
B
XML Standard Packaged Message
Local Cable
C
Radio
D
Magazines
Newspapers
Internet
Trading Partners 3rd Party Software Provider
Out-of-Home
Direct Response
Yellow Pages
HUB
58
Why Did We Create the Lab?

• Schemas are built.
• Lets 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.

59
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.

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The Scope

• 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.

Media Selling Trading Partner
Media Buying Trading Partner
Trading Partners System
Trading Partners System
Data Packaged in XML Standard
Data Packaged in XML Standard
Trading Partners Hub
Trading Partners Hub
61
Who Can Participate?

• Any trading partner in conjunction with their
  software provider.
• Any provider of Hub Services.

62
Your Role
TRADING PARTNER
HUB PROVIDER
3RD PARTY SOFTWARE PROVIDER

• 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.

63
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.

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Status of Business Rules XML Schemas
Legend
Business Rules Created
XML Standards Created
65
What Can Be Tested in the Lab? Any of these!
Legend
Business Rules Created
XML Standards Created
66
When Will the Test Occur?
FEBRUARY
MARCH
APRIL
JANUARY
eBiz for Media Lab Registration Opens 1/20
2/3 www.ebizformedia.com
Individual Media Kick-Off Meetings scheduled
throughout February
Test Coordination Project Plan
Testing Begins Goal for completion 3-6 months
Communication Registry Requirements Definition by
Medium
67
Meetings By Medium

• Pairing off of participants
• Discussion of potential problems participants
  anticipate might occur in communicating

Follow-up Meeting Schedule
Magazines February 2nd 10a 11a MPA Newspapers Fe
bruary 2nd 2p - 3p Associated Press Out-of-Home Te
ntative Feb 8th 4p 5p AAAA Interactive February
9th 2p 3p IAB Spot Television February 15th 2p
3p TVB National Cable February 15th 10a
11a CAB Spot Cable February 27th 11a
12p NCC Spot Radio February 27th 2p
3p Katz All-Tech Meeting TBD
68
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.

69
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.

70
Who is Committed To Joining?

• Carat
• Horizon
• Initiative
• Mediacom
• MediaEdge
• MindShare
• Universal McCann
• Zenith Optimedia

71
Who is Committed To Joining?

• Katz Media
• CBS
• Time Inc.
• NCC
• DDS
• XML Invoice Confirmation Transaction
• TVB Order V.1 XML Standard

72
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.

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