Spots N Dots
The Daily News Of TV Sales
January 20, 2016
THE OPTIMISTIC CASE FOR TELEVISION
WHY AD BUDGETS SHOULD RETURN TO TV
A few weeks back (1/6) we ran a summary of the 2016 advertising forecast from veteran
analyst Jack Myers (pictured) forecasting a strong 6.7% jump for Broadcast Network TV, 2.4%
for Cable Networks, Spot Broadcast TV up 12.5% and Local/Regional Cable up 11.3%. Those
are some pretty hefty numbers—and, while including related digital business for the TV
companies, are based primarily on growth in the legacy TV business.
Business Insider also took note of Myers’ bullishness and quizzed him on why he is
confident that this year will bring “the beginning of a long-term trend of marketers returning to
legacy media.” That’s obviously a contrarian view to the widely held belief that all advertising is
rapidly shifting to digital platforms.
Not surprisingly, Myers says it comes down to ROI—return on investment. He told
Business Insider there is a growing body of evidence that the target audience, reach and
awareness of ad campaigns has been on the decline for the past decade, which has negatively
impacted ROI. From the point of view of the marketers, he says, “Their analyses point to the
best solution being a reinvestment in television first, followed by out-of-home, radio and to a
lesser extent print.”
We would chime in that consumer package goods (CPG) companies have been leading
the charge to increasing digital advertising at the expense of television budgets, even though
research available publicly indicates that digital is particularly poor in ROI performance for CPG.
Sure, Mondelēz has had one digital hit for Oreos—which we would note was already a wellestablished brand—but there’s no indication that either Mondelēz or Procter & Gamble has yet
found the “secret sauce” to make digital-only campaigns work as well as linear TV.
Digital’s biggest selling point is targeting—and the resulting ability to count each and
every exposure, usually with a fairly accurate demo attached to it. In a commentary on Media
Village, which is part of Jack Myers’ MyersBizNet, marketing consultant Steve Grubbs of
Second Act Media laments the pitfalls of “efficiency first” buying strategies. Yes, the scientists
using big data have instilled some much needed purchasing discipline, he says, but they have
turned a blind eye to the failures of automation—“such as over-delivering frequency at the
expense of reach.” Grubbs found hope in the recent decision by PepsiCo to disband its
marketing procurement team and turn the responsibilities over to individual brand managers.
“Cost savings do not equal more impactful advertising,” Grubbs notes. Maybe the tide is
shifting again, as Jack Myers suggests. The ultimate objective for marketers is to sell stuff—and
TV still does that better than any of its competitors.
ADVERTISER NEWS
Chipotle will close all its restaurants for a few hours on February 8, and QSR reports the
unusual move is to “hold a company-wide discussion on food-safety protocol.” The move is not
entirely unprecedented in the restaurant industry; Starbucks closed all units for a few hours
several years ago to retrain employees……Sunny Delight, a former Procter & Gamble brand,
is being sold by private equity fund J.H. Childs Associates to Brynwood Partners, which
already owns Harvest Hill Beverage Company, maker of Juicy Juice, the Hug juice brand,
and Daily’s Cocktails……Speculation is growing that General Motors might use the GMC
Acadia to mount a challenge to Jeep’s niche, as GMC will downsize the vehicle to offer an AllTerrain model. Automotive News reports that ever since GM dropped the Hummer in 2009,
there has been thought it would get back into a “Jeep-fighter” mode……BMW is cutting the free
maintenance offer with its new vehicles from 4 years/50,000 miles to 3 years/36,000 miles. But
the company plans to use the savings to offer a new dealer incentive, where dealers who meet
several criteria can earn a monthly bonus of one percent of sticker price of new vehicles
sold……Bank of America earned $3.34 billion in the fourth quarter, compared to $3.05 billion
the year before. The Wall Street Journal notes BofA has been the bank most looking forward to
the Fed raising interest rates because of its large portfolio of mortgages and other loans. Even
though the small increase announced by the Fed came very late in the quarter, net interest
income rose from $9.51 billion to $9.8 billion……In a merger that is taking a very long time to
develop (Ahold and Delhaize originally announced an agreement last June), the two
companies have now filed the needed Joint Merger Proposal in Belgium. As we have reported,
the deal could have major significance in the U.S. supermarket business on the East Coast, as
Ahold owns Stop & Shop, Giant in several Mid-Atlantic States, and Peapod, while Delhaize
owns Food Lion and Hannaford. The two companies still expect to close the deal no later than
June……California-based Tawa Inc. says it will expand its Asian-focused 99 Ranch Market
chain to the East, opening some stores in New Jersey this year. Locations to date have been in
just California, Nevada, Texas and Washington……The convenience store business, still one of
the least-consolidated retail segments, seems to be picking up in deal-making. GPM
Investments, which operates 665 company-owned stores as Fas Mart and other banners, is
acquiring 67 Apple Market stores from Fuel USA. The deal is expected to close before the end
of the current quarter.
NETWORK NEWS
Six-time Dancing with the Stars champion Derek Hough serves as Master of
Ceremonies when ABC presents The Wonderful World of Disney: Disneyland 60. Hough will
guide viewers through 60 years of Disney magic, showcasing sensational song and dance
performances and special appearances in the star-studded two-hour special airing Sunday,
February 21, at 8:00 pm (ET)……NBC is set to premiere the new comedic alternative series
Little Big Shots on Sunday, March 13, at 8:00 pm (ET), from two of the biggest names in
comedy, executive producers Ellen DeGeneres and Steve Harvey. As host, Harvey goes toe
to toe with some of the smallest performers with the biggest talent in this new program featuring
the world’s most extraordinary kids……Boris Kodjoe has joined the CBS medical drama Code
Black in a recurring role. Beginning Wednesday, February 3, Kodjoe will portray Dr. Will
Campbell, a suave surgeon whose surgical skills and personal charm are only outweighed by
his ego……The Victoria’s Secret Swim Special is set to air Wednesday, March 9, at 9:00 pm
(ET). This year the sexy special was shot on the beautiful island of St. Barth's in the French
West Indies. Joining the models on the island to perform will be pop stars Demi
Lovato and Nick Jonas.
MONDAY RATINGS
The Bachelor on ABC was the top show in 18-49, but CBS still won the night, led by
Scorpion. The Nielsen overnights put CBS at an average 1.8 rating in Adults 18-49 and 6.3 in
Households, with an average audience of 10.233 million. ABC was at 1.7 18-49, 4.2 HH and
6.334 million; FOX, with the MasterChef Celebrity Show, 1.5 18-49, 2.4 HH and 4.130 million;
Univision 0.8 18-49, 1.1 HH and 1.911 million; Telemundo 0.7 18-49, 1.0 HH and 1.774
million; and The CW 0.4 18-49, 0.9 HH and 1.406 million.
STUDY: BOT FRAUD STILL COSTS BILLIONS
Advertisers are expected to lose an estimated $7.2 billion globally this year as a result of
fraudulent impressions, or bots, according to a new study conducted by the ANA (Association of
National Advertisers) and White Ops. The study also concluded that fraud levels are relatively
unchanged compared to the results of a similar study conducted a year ago. While bot volumes
have remained steady, digital spend has increased, leading to the increase in estimated global
losses to ad fraud.
“The level of criminal, non-human traffic literally robbing marketers’ brand-building
investments is a travesty,” said Bob Liodice, ANA president and CEO. He says the lack of
progress highlights the importance of the industry’s Trustworthy Accountability Group in fighting
the war against ad fraud.
49 ANA member companies participated in the 2015 Bot Baseline study. Those
participants deployed White Ops detection tags on their digital advertising to measure bot fraud.
The research found that in 2015, advertisers had a range of bot percentages varying from 3% to
37%, compared to 2% to 22% in 2014. But the average and overall rates of fraud were basically
unchanged. Less than a third of the advertisers which participated in both surveys experienced
a decrease in their bot rates.
Media with higher CPMs was more vulnerable to bots. These segments provide a
stronger economic incentive for botnet operators to commit fraud. Also, programmatic ad buys
displayed higher levels of fraud. Programmatic display ads had 14% more bots than the study
average, while programmatic video ads had 73% more bots than average.
GOP DUMPS NBC FOR CNN
After first suspending its partnership with NBC News over CNBC’s handling of the third
Republican Presidential Debate in October, the Republican National Committee has now
severed ties with NBC News completely. That means that the pre “Super Tuesday” primary
debate Thursday, February 25 in Houston will air on CNN, not NBC. RNC Chairman Reince
Priebus says the event will still include NBCU-owned Telemundo, along with National Review
and Salem Communications.
BROADCAST TOPS CABLE FOR NFL
With Super Bowl 50 on CBS fast approaching, the TVB is out with a new report—NFL
2015: A Local Success (Again)—spelling out how local broadcast stations remain the preferred
game day medium with viewers over cable.
TVB’s analysis says that when games aired on both ABC and ESPN: ABC had a 14.8
national HH rating and a 12.2 national male 25-54 rating compared to ESPN, which averaged a
3.7 national HH rating and a 3.1 national male 25-54 rating.
“This year’s Thursday Night Football airings were another tremendous win for local
affiliate stations, with local CBS household ratings and male 25-54 ratings as high as 13 times
and 10 times greater, respectively, than viewership on NFLN,” said TVB president and CEO
Steve Lanzano. When the games aired on both CBS and NFLN (weeks 2-8 and week 13): CBS
nationally averaged a 10.9 HH rating and a 9.2 male 25-54 rating compared to the NFLN, which
averaged a 2.1 HH rating and a 2.4 male 25-54 rating; CBS HH rating increased by 6% in the
2015 season, up to a 10.9 rating from 10.3 in 2014; and CBS male 25-54 rating increased by
5% in the 2015 season, up to a 9.2 rating from 8.8 in 2014.
THIS AND THAT
Univision Communications has expanded again in English-language media by
becoming the largest investor in Onion Inc., the comedy and satirical news brand. Univision
says The Onion is a complementary extension of its Spanish- and English-language digital
portfolio, broadening the company’s multicultural, digital footprint and its reach with a highly
coveted millennial audience……The National Association of Home Builders housing market
index held steady at 60 this month. A reading over 50 means most builders generally see
conditions in the single-family housing market as positive……Volkswagen AG has named
former BMW executive Hinrich Woebcken to head its North American business, filling the post
as the company deals with the fallout from its diesel emissions cheating scandal.
AVAILS
World class arts and entertainment, beautiful parks, and the Kentucky Derby/Festival welcome
the new General Sales Manager at WAVE 3 News, Raycom Media’s NBC affiliate in
Louisville, KY, DMA #49. We're looking for a visionary leader who recruits and develops
difference makers, builds teams, and grows market share, new business, and revenue streams.
Candidate will create a winning culture of excellence. CLICK HERE for more info or to apply
now. No phone calls please. EOE-M/F/D/V
WTTG/WDCA in Washington, DC is looking for a highly motivated Account Executive to join
our team. The responsibilities include: work directly with ad agencies and clients to increase
station revenue and shares through growing core business; achieve budgeted goals,
maximizing revenue and share performance for the station and create multi-platform packages,
group presentations, negotiate and close business. 3-5 years of successful broadcast
experience preferred. Ref posting source and position #4584. CLICK HERE to apply.
EOE/M/F/Disabled/Veterans.
KWQC-TV6, NBC, the #1 dominating news and highest rated station 34 years running in the
Davenport, IA-Rock Island, IL DMA has a rare opportunity for an experienced high performing
multi-platform media seller who is capable of integrating into our team and is ready to
successfully contribute. Our Advertising Executives are well compensated and are expected to
perform at market leading levels on new business development and transactional negotiations,
if this describes you…please apply at www.mediageneral.com/careers. EOE/D/V/M/F
Account Executive: Have you peaked at your current station? Looking for an opportunity to
take on a bigger account list? WKCF, Hearst’s CW in Orlando, has an opening for a veteran
seller. With 5 hours of local news daily and strong syndication and prime programming, we are
one of the highest rated CW’s in the country. We also offer premier digital products, state-of-theart sales training, and a fun culture that celebrates our wins. CLICK HERE to apply now.
EOE/M/F/D/V
WSAV, the NBC and MYTV affiliate in Savannah, GA is seeking a highly motivated General
Sales Manager who inspires a commitment to excellence and accountability for achieving
results. Candidate must be a leader and coach with a track record of success in growing
revenue share through new business, station initiatives, and digital products. Ten years
broadcast and/or digital sales experience and three years of management required; college
degree preferred. CLICK HERE to apply or send into to HR@wsav.com. No calls please.
EOE/Drug & background check required.
The New England Sports Network is searching for a National Sales Manager. Through
managing and directing NESN’s national rep firm, the NSM will manage and direct Fox Sports
Media group (HTS) and all offices and personnel where it pertains to NESN Service and
represent NESN clients throughout the country. The NSM will oversee direct sponsorship and
agency driven revenue streams by designing and recommending packages for national rep firm.
8+ years of media sales experience required. Apply or find out more HERE. EOE/M/F/D/V
Tribune owned KSTU Fox 13 in beautiful Salt Lake City (DMA #34) is looking for a Senior
Account Executive to join the #1 revenue station in the market. Great ratings, great sales team
and a great future for the right candidate. Contact Beth Young (LSM) with serious inquiries at
beth.young@fox13now.com or call directly 801-536-1394. EOE.
Morgan Murphy Media, one of the few family owned media companies in the country, has an
opening for an experienced Local Sales Manager at WISC-TV in Madison, Wisconsin. We're
searching for a leader with a proven track record of success in a multi-platform sales
environment including traditional television, interactive, digital services, and mobile, with an
ability to integrate all into cohesive local sales programs. Get more details or apply HERE. Or,
send resume to WISC-TV, Attn: HR/LSM, 7025 Raymond Rd., Madison, WI 53719. EOE.
Are you tired of being just a number among the thousands who are a part of the big four or five
broadcast corporate conglomerates? If you have the spirit, drive and ability, as well as a desire
to earn a living working for a smaller broadcast company running a Big Four network affiliate in
a smaller southeast market, we’d like to talk to you about our GSM position. LSMs and AEs who
are ready to step up, or current GSMs, send your resume/cover letter in confidence to
jobs@spotsndots.com.
WOLO TV is seeking a Digital Sales Specialist to develop and lead our digital marketing effort.
This newly created position will be at Columbia, South Carolina’s fastest growing television
station. We’re looking for an experienced, digital-savvy leader to create and manage sales of
web, mobile, digital, and other multi-platform opportunities. The ideal candidate will have a
Bachelor’s degree in Business, Marketing or related field, and extensive knowledge of multimedia ROI-based creative marketing solutions. Send info to: smagee@abccolumbia.com. No
calls please. EOE.
TIRED OF GREY DAYS? KASW CW6 Phoenix (Valley of the Sun) has an amazing opportunity
for a Seasoned Seller/New Business Guru. Do you thrive in uncovering dead leads, new
clients and growing existing clients? Do you like to be out of the office and meeting with 10+
clients each day? Then we want to talk to you about joining our family. We pay HIGH
commissions on NEW BUSINESS. CW6 is part of the Nexstar family. To show us your strength,
go to www.yourphx.com/work-for-us. Background check required. EOE
A new company is offering customers a chance to cut their hotel bills in half if they are willing to
share their room with a stranger. The company is called Jose Cuervo.
--Seth Meyers
The parents of a 6-year-old Canadian boy are angry because he’s been put on the no-fly list.
TSA agents said, ‘We’re trying to prevent the next Bieber.’
--Conan O’Brien
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SPOTS N DOTS
The Daily News Of TV Sales
January 20, 2016
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