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

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 • 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. 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

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.

14. 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

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.

16. 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) 1. Station web ads/banners 2. Talent fees 3.   Remote Charges 4.   Bonus Spots 5.   Billboards 6.   Live Reads 7.   Sports Sponsorships 8.   Multi lengths 9. Premium Pod Positions 10. Promotions 11. PSA's

17. Learnings Where We Are Today Next Steps

18. 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

19. Advertisers ANA

20. Magazines

21. 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 • G+J/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

24. 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

26. 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

27. 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

28. 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

30. 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

32. 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

33. 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. Phase 1: Define Initiative Phase 2: DevelopPlan Phase 3: ImplementInitiative Phase 4: Market Initiative Standard IAB Initiative Process • 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 KeyDeliverables • IAB • IAB Task Force • IAB • IAB Task Force • IAB • IAB Task Force • AAAAs / ANA • IAB • IAB Task Force • AAAAs / ANA Key Participants& Timing 3 Months 6 Months 3 – 6 Months Ongoing Revenue Cycle: Examine business processes and issues in a holistic way, including all pieces of business Standards Launch 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 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

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.