Spots N Dots
The Daily News Of TV Sales
February 19, 2016
2016 LOOKING LIKE AN ADVERTISING WINNER
OLYMPICS AND POLITICAL BOOSTING TV
The year 2016 is still in its infancy, but Standard Media Index (SMI) Chief Commercial
Officer James Fennessy says there are already strong signs that it will be a winner on several
fronts for media companies. Data for the fourth quarter and full year 2015 provide some strong
indicators that TV network ad spend will rise by mid-single digit percentages this year,
compared with 2015. And the first take on January from SMI that we reported yesterday showed
total advertising up 2%. Broadcast TV had a healthy 8% gain, although cable dropped 7%.
Fennessy says in his latest blog post that he’s assuming that NFL games will continue to
flex their ratings muscle; the Summer Olympics will capture broad attention, and political
advertising—which traditionally flows most liberally into spot—will have a halo effect for
broadcast and cable channels, and most definitely for digital. Those are some pretty safe
assumptions. “I’m also betting that TV networks will enjoy growth in upfront dollars this year,
given the huge increase in scatter spend during the last quarter. And the strong magnetic pull of
digital will gain even more momentum, as many cable networks continue to face ratings
challenges and advertisers scout out even more alternative opportunities,” he says.
While December was slow for both broadcast and cable networks, January (as noted
above) was mixed. But Fennessy notes that scatter spending was “still extraordinary” both for
the month of December and full quarter, when compared to the same time in 2014. Among the
broadcast networks, scatter grew a whopping 47% in Q4 and 36% in December. Cable channel
scatter rose 13% for the quarter, although in December it was down 2%. Averaging cable and
broadcast networks together, scatter was up 28% in Q4 and 14% in December. That’s pretty
impressive.
Don’t count out the newspaper industry as dead just yet. “The immediacy of newspapers
and their continuing success as digital news sources really started to pay off throughout 2015,
and the media category was a standout during the last quarter as well: up 14%, compared with
7% for the entire year,” Fennessy said. By way of comparison, magazines lost 1% ad spend for
the quarter, and were down 5% for full year 2015. Out of home posted stronger results than
newspapers for the quarter: up 18%. However, it was down 4% in December.
“We’ve come to expect nothing but stellar results for digital ad spend growth, and the
final chapter of 2015 provided no surprises,” the SMI exec noted. The category enjoyed an
overall rise of 35% in Q4 and hardly any slowdown in December, up 34%. That’s better than the
category’s performance for the entire year, up 26%.
ADVERTISER NEWS
Walmart reported a 0.6% gain in same-store sales for the quarter that ended on 1/31
along with a slightly higher (0.7%) gain in traffic. It was the sixth straight quarter of positives
after a string of declines earlier in the decade. “We are seeing momentum in our…business,”
CEO Doug McMillon said……After bringing back the Bluelight Specials last year, Kmart will
move towards the “extreme value” end of the retail market to compete with successful chains
such as Big Lots and Ollie’s Bargain Outlets. “The path to making Kmart great again starts
with sourcing truly brag-worthy deals,” its president said……Dr Pepper Snapple reported flat
volume for carbonated soft drinks but a 4% increase in noncarbonated drinks such as Clamato,
Hawaiian Punch, and Fiji bottled water. Total revenue rose by 2.5% and profit rose by 23% to
$185 million……The International Sleep Products Association issued a preliminary analysis
of 2015, reporting the bedding industry was up 3.6% in units last year and after some price
increases, was able to grow by 6.2% in the wholesale value of shipments……East Coast food
retailer Weis Markets said same-store sales were up 4% in its fiscal third quarter, crediting its
loyalty program and promotions for growth in traffic……The National Restaurant Association
is optimistic about 2016, projecting industry sales to grow by 5% to $782.7 billion. Even
eliminating the part of that increase that comes from inflation, there would be a 2.1% increase,
which would be the first time in more than ten years that the industry grew by more than 2% in
back-to-back years. An improving economy and lower gas prices are key reasons for the
optimism……Jack in the Box is admitting that McDonald’s all-day breakfast is hurting its
business. Same-store sales for its 2,253 stores were up 1.4% in the quarter that ended on 1/27,
but that was lower than had been anticipated. Jack’s CEO also noted “several competitors
began promoting aggressive value offers”……Denny’s reported a 3.5% same-store sales
growth at company-owned units and a 2.8% increase at franchised locations. Only about a third
of locations have remodeled to the Heritage design so far, and the company says those
changes have resulted in better same-store gains once the changes are
accomplished……Although the fourth quarter is the least important in the amusement park
business, Six Flags posted an unexpected profit of $2.2 million in it compared to a loss of $34.1
million the year before. A 22% increase in attendance was attributed to Halloween and winter
holiday events. The count of people with a season pass or enrolled in Flags’ membership
program is now up 26% from a year ago.
NETWORK NEWS
ABC has rescheduled Journey to the Oscars, a one-hour special edition of 20/20
hosted by Robin Roberts. It will now air Friday, February 26, at 10:00 pm (ET), rather than this
coming Sunday. The program features in-depth, emotional stories about some of the most
notable 2016 Oscar nominees, including Sylvester Stallone, Brie Larson, Bryan Cranston,
Sir Ridley Scott and Matt Damon. The Oscars will air two days later on Sunday, February
28……Univision will air an original documentary—co-produced by Univision News and the
newsmagazine program Aquí y Ahora (Here and Now)—which explores the anti-immigration
movement that is currently sweeping the U.S. and becoming a profitable industry—“an industry
that thrives on fear,” says the network announcement. Deportation, Inc.—La Industria del
Miedo (Deportation Inc.—The Fear Industry) will air this Sunday, February 21, at 7:00 pm
(ET)……Morgan Freeman, John Legend, J.J. Abrams, Sacha Baron Cohen and Henry
Cavill have been added to the list of presenters for the 88th Oscars telecast Sunday, February
28 at 7:00 pm (ET) on ABC. Oscar producers David Hill and Reginald Hudlin also announced
a special performance by Dave Grohl……Last Vegas, starring Michael Douglas, Robert De
Niro, Morgan Freeman and Kevin Kline in a comedy about four longtime best friends who
throw a bachelor party in Las Vegas for their remaining single pal, makes its broadcast
television premiere Sunday, February 28, at 9:00 pm (ET) on CBS……FOX puts a prehistoric
spin on the world’s first Easter Egg Hunt in the all new animated special Ice Age: The Great
Egg-scapade airing Sunday, March 20, at 7:30 pm (ET). Featured guest voices include Taraji
P. Henson, Seth Green, Wendy Williams, Gabriel Iglesias, Lili Estefan and Blake
Anderson. The broadcast will also include an exclusive sneak peek at the new animated
feature film Ice Age: Collision Course……Lindsey Vonn continues her pursuit of the FIS
World Cup alpine skiing victories record from La Thuile, Italy, this Saturday at 3:00 pm (ET) on
NBC. That’s followed at 4:00 pm (ET) by the ladies freestyle competition in the 2016 ISU Four
Continents Figure Skating Championships from Taipei City, Taiwan……Director Kenny
Leon, choreographer Jerry Mitchell and script adaptor Harvey Fierstein have been signed for
NBC’s production of Hairspray Live to air Wednesday, December 7, at 8:00 pm (ET).
WEDNESDAY RATINGS
The Adults 18-49 demo produced a three-way tie Wednesday night for CBS, FOX and
ABC, while NBC won for Households in the Nielsen overnights. CBS, with the season premiere
of Survivor: Kaoh Rong, was at 1.6 18-49, 4.5 HH and an average 7.184 million viewers; FOX,
with American Idol, 1.6 18-49, 3.8 HH and 6.111 million; ABC, led by Modern Family, 1.6 1849, 3.5 HH and 5.513 million; NBC, with Law & Order: SVU, 1.4 18-49, 4.7 HH and 7.144
million; The CW, led by Arrow, 0.9 18-49, 1.4 HH and 2.229 million; Univision 0.7 18-49, 1.0
HH and 1.841 million; and Telemundo 0.5 18-49, 0.7 HH and 1.069 million.
NBCU LAUNCHES AUDIENCE STUDIO
NBCUniversal has created a new unit, Audience Studio, built to aid advertisers in
using data to precisely target audiences across TV, digital and social media. “Excited to be part
of this initiative and team,” tweeted NBCU SVP Denise Colella, who has been tapped to head
the project.
It's a roll-up of four different products that NBCU has introduced in the past few years:
Audience Targeting Platform (for linear TV), NBCUx (for digital), NBCU+ Powered by
Comcast (which used some of Comcast's set-top box data) and Social Synch (for social).
Colella, whose title is senior VP of data platforms and strategy, will be putting together a
team of specialists for Audience Studio, including some new hires. As envisioned, the new
division should ease impediments to advertisers who were looking to input targeting data in
several different ways.
DIGITAL NEEDS UNFULFILLED BY RETAILERS
Kibo, which operates a cloud-based omnichannel commerce platform, is out with its
2016 Consumer Trends Report finding that digital services are now expected as standard by
consumers, with retailers needing to adapt, or risk losing customers. With only 5% of consumers
surveyed preferring to avoid omnichannel completely, Kibo concludes that “digital services are
central to the retail experience.”
In a warning to retailers, the survey of 3,000 consumers in the U.S. and U.K found that
the digitally demanding consumers’ loyalty is eroding. More than half of U.S. (54%) and U.K.
(56%) shoppers are willing to jump ship to a rival retailer if their preferred method of delivery
isn’t available. With the pace of our everyday lives speeding up, the patience of digitally
demanding consumers is wearing thin. Nearly a quarter of Americans and a third of Brits expect
short delivery times (two days or less). Four-in-ten (43%) of U.S., and more than a third (37%)
of U.K., consumers would prefer to use in-store pickup (click-and-collect) if the option were
available. In addition, nearly one-third (29% in both countries) will not buy from retailers unable
to offer in-store pick-up or extended payment options (28% U.K.; 31% U.S.).
“Most consumers have their preferred places to shop, yet, retailers’ lack of progression
toward offering a true omnichannel experience can erode their customers’ loyalty. As such, the
only option left open to many consumers is a move to the closest competitor who will,” said
Kenneth Frank, CEO, Kibo.
ACCOUNT ACTION
Following a competitive review, independent Solve, Minneapolis, has been hired by
Radisson. The agency will provide global brand positioning and identity, as well as target
audience definition, connection strategy, media buying and messaging across traditional, digital
and social channels for the hotel brand.
AUTOMOTIVE UPDATE
How quickly are self-driving cars coming? A new forecast from Navigant Research
projects that 129 million autonomous-capable vehicles will be sold worldwide from 2020 through
2035. Liability in accidents remains an issue, but the report expects that to be resolved by
legislation……With market demand shifting to SUVs and crossovers, TrueCar says some of the
best deals available to consumers this month are on small, midsize and large sedans. In
particular, the Ford Focus is transacting as much as 14% off MSRP, and the Toyota Corolla is
available with zero percent financing for up to 60 months. The Mazda3 compact also has nointerest financing for up to 36 months. Volkswagen is offering a special lease promotion of
$139 for 36 months on its Jetta model……Sweden-based and Chinese-owned Volvo Car
Group is continuing its comeback. 2015 was the first time Volvo reached sales of more than
500,000 cars, a step toward its goal for annual sales of 800,000 by 2020. Last year’s
operating profit rose to 6.62 billion Swedish krona ($776.6 million) from 2.13 billion the
previous year. The company is forecasting record sales and even more profits this year.
THIS AND THAT
The Global Fraud Attack Index—a collaboration between PYMNTS.com and Forter—
finds that ecommerce fraud attempts on merchants rose by 163% in 2015. The most attractive
targets are digital goods, luxury goods, food and beverage, clothing, electronics. The biggest
driver of overall fraud is Botnet attacks on digital goods, which amount to 75% of all potential
fraud losses in the segment……Here’s something new on the recall front: A cannabis
wholesaler in Washington State has issued a recall for three pot products after two of its
suppliers were investigated for using prohibited pesticides……On a 3-2 party-line vote, the FCC
approved a Notice of Proposed Rulemaking on Chairman Tom Wheeler’s proposal to open
cable/satellite set-top boxes to all comers......Mortgage rates rebounded after falling for six
consecutive weeks, with the benchmark 30-year fixed mortgage rising to 3.85%, according to
Bankrate.com's weekly national survey.
AVAILS
WSET-TV is looking for exceptional Account Executives who can take an exciting and
established list to the next level. We have opportunities in our Lynchburg and Roanoke, VA
offices. Position requires an individual who possesses strong sales skills, can persuade a local
client and would love selling a dynamic TV station. Prefer that candidate have some broadcast
sales experience, a passion for new business development and understands how to create
revenue streams through a multi-screen integrated approach. CLICK HERE to apply now. Equal
Opportunity Employer and Drug Free Workplace!
KPRC-TV/Click2Houston.com, (NBC/Graham Media Group, Inc.), has an opening for a Digital
Account Executive with previous digital sales or campaign management experience. The ideal
candidate must have experience selling digital solutions to key regional and local agencies and
direct clients. The successful candidate will be responsible for selling to local businesses as well
as businesses in surrounding areas---all digital platforms. Specific experience in Internet
Advertising, and Bilingual communication skills are a plus. To apply please send resume to:
jobs@kprc.com. EOE
Local Sales Manager: WFXB-TV, the Fox affiliate in Myrtle Beach, SC, (Bahakel
Communications, Inc), is searching for a Local Sales Manager with at least two years of sales
management experience. 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. The successful candidate will have strong inventory management and strategic
pricing skills. Excellent verbal and written communication and research skills are required.
Attention to detail is a must! Info to: rwilson@wfxb.com. EOE.
WHNS-TV/FOX Carolina in Greenville, SC is searching for a General Sales Manager who is a
strong team leader. This is an incredible opportunity to work and live in an award winning region
for both livability and business. The ideal candidate must have a strong background in New
Business Development and Inventory Management. Proficiency in recruiting, developing and
motivating a sales staff is a must. A minimum of 5 years of local television experience with an
understanding of national business required. APPLY HERE. EOE.
WAXN TV 64 – Cox Media Group Television Station in Charlotte, NC (Market #22) seeks a
Local Account Executive. We’re looking for passionate sellers that want to WIN. The ideal
candidate will be a sales professional with 1-4 years of media sales experience. The candidate
will be responsible for prospecting and selling new business, as well as our vast digital portfolio,
and growing a transactional list. Interested? Please contact Mark Afshar, LSM, 704.371.3120,
mark.afshar@waxntv64.com. EOE.
Midwest Network affiliate is looking for an experienced anchor/reporter. This individual will
anchor a daily newscast M-F and serve as senior reporter providing daily newscast content.
Minimum of three to five years professional experience is required. Send cover letter/resume
and current demo link to: apply@spotsndots.com. EOE.
WBTV-CBS/Raycom Media, Charlotte’s News Leader, has a fantastic opportunity for an
experienced LSM or senior account executive that is ready to move up to our open LSM
position in the 22nd market. A qualified candidate will be a team leader with a clear focus on
new business development and providing client advertising solutions with both on air and digital
sales platforms. Coaching and team building skills and the ability to plan and achieve sales
objectives are important. Qualified applicants, please apply online and attach resumes and
links to your work. No calls please. EOE/M/F/D/V
It's our second day in Los Angeles—and good news: we just found a parking spot.
--Jimmy Fallon
An exact replica of the Titanic is scheduled to set sail in 2018. The good news is by 2018, there
will be no icebergs left to sink it.
--Conan O’Brien
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SPOTS N DOTS
The Daily News Of TV Sales
February 19, 2016
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