For several years, media planners and buyers have lamented that electronic data interchange (EDI) is the only way they’ll be free from the mounds of paper generated by the process – particularly when it comes to television buying. But now that the technology is within their grasp, agencies are only adopting it one by one.

The importance of EDI is that it allows media buyers and sellers to handle their dealings electronically from proposals, negotiations and scheduling all the way through to invoicing and payment. Not only do electronic transactions free both sides from an avalanche of paperwork but also, because the deal is done in real-time, the ad space and time under discussion won’t be sold to someone else while paper gets shuffled back and forth.

Brian Pearman, the consultant spearheading the initiative for the Canadian Media Directors’ Council (CMDC) and the Institute of Communications and Advertising (ICA), says even with old problems and objections out of the way, getting sign-on is still slow slogging.

‘It’s a bit of a chicken-and-egg thing. People take things seriously when you can turn around and say, ‘Look, these ad agencies and media companies are using EDI.’ If it looks like an impressive list, people are more relaxed about jumping on board. The whole Canadian industry is fairly conservative and will not do things without examining it three ways to Sunday. When they realize that some of their major competitors have already signed up, that’s a major incentive for them to sign up as well.’

When the industry first began its quest for EDI about five years ago, Pearman says there were two major roadblocks – high cost and system incompatibilities. Compatibility is a major issue with Canadian agencies using Donovan Data Systems or Adtraq from Encoda to plan and schedule media buys, although some, such as Cossette Communication Group, have their own proprietary systems. Of course, the various media suppliers also use different systems.

But those hurdles are in the past, and today the CMDC-ICA EDI project is recommending two systems: one from Warren Lamb & Associates of Poughquag, N.Y. and another from Ad2Media of Toronto. Both provide direct, secure, encrypted communications between the parties via the Internet.

Ad2Media’s system, the more costly and sophisticated of the two, ran a successful pilot test with OMD Canada, Media Buying Services, CanWest Global and Corus Entertainment earlier this year and is continuing to refine and enhance its product.

EwindEDI from Lamb & Associates was first implemented in Australia. It’s used by the cable television industry in the U.S., and is rapidly expanding in that country. The appeal of EwindEDI is that it works invisibly and seamlessly with all software systems used by media buyers and sellers without a third-party clearinghouse and with a fixed operating cost – roughly a $2,500 one-time cost.

Pearman says an industry test of EwindEDI, will begin in a few weeks to study how it works for invoicing for an Adtraq agency, a Donovan agency and Cossette and CHUM broadcasting properties.