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sales@spotsndots.com Copyright 2018.The Daily News of TV Sales Friday, September 21, 2018

POLITICAL SPEND TO OFFSET CUTS FROM AUTO Good thing there’s political. That’s the bottom line from Magna Global’s newly-updated forecast for local television revenue this year. The ad agency’s forecasting team expects political ad spending to increase by 19 percent compared to the last mid-term election four years ago, with more competitive House races than initially thought —105 versus just 70 in 2014. There are also several closely-fought gubernatorial races. The end result is Magna projects $2.9 billion in campaign dollars will pour in television. It forecasts local TV revenue will increase 9.1 percent to $21.5 billion in 2018. Those political dollars are well-timed. Magna estimates underlying core revenue is tracking to be down 4.4 percent this year. That’s a full point below its earlier 2018 forecast released in June. It also suggests what forecasters say is a “worsening trend” for local TV since its numbers show the industry’s core revenue slid 3.6 percent last year. And without political ad dollars Magna predicts local TV revenue will drop 15.6 percent in 2019. That’s off nearly a point from the last update. Magna EVP Vincent Létang says one of the big culprits is less automotive spending. Its data show automotive spending declined 8 percent in the first half of the year, one of only three sectors that reduced spending year-to-date. The result was “relatively weak” local TV pricing power, according to Létang, who says radio and print outlets are suffering from the same client cutbacks in local spending. “Digital media was the big winner again,” he says. Digital advertising is projected to pass the $100 billion mark this year, which would mean it would account for half of total U.S. advertising sales for the first time. Mobile ad spending is predicted to increase 30 percent to $70 billion—which, if accurate, would mean mobile would top TV spending for the first time. Magna says that would reflect the “ever-growing role smartphones have taken in our lives.” But the news isn’t all bad for television. Létang says national TV revenues are “stabilizing” after six consecutive quarters of “erosion.” Magna says national TV sales will grow by 0.9 percent this year. Létang credits “strong spending” in ad categories like pharmaceutical and food/drinks by brands that remain loyal to TV and have expanded budgets. The result is that more brands are being priced out of primetime or network TV altogether as years of scarcity-driven inflation has pushed the average primetime CPM to an all-time high close to $50. That could help direct some clients to explore spending more in key local markets. Magna also sees advertisers willing to increase spending on so-called Advanced TV and Over the Top (OTT) campaigns. It forecasts set-top-box-based addressable campaigns on cable networks will reach $815 million this year, a 28 percent increase compared to a year ago.

(Continued on Page 3)

MAGNA FORECASTS 9% GROWTH FOR LOCAL TV IN ’18ADVERTISER NEWS CNBC says nostalgia over the loss of Toys R Us may have boosted toy sales in the beginning of the year, but it might not be enough to fuel holiday sales. It reports that while there was renewed optimism about the state of the toy industry after a 7 percent jump in sales from January to June, UBS is skeptical

the trend will endure. UBS says toy sales in July and August were down in the high-single digits, with September continuing that downward trend... USA Today says Under Armour is planning to cut about 3 percent of its workforce as the athletic apparel company

continues restructuring its global operations to become more efficient. A spokeswoman says the cuts affect “roughly” 400 employees. UA had a global workforce of 15,800 employees as of Dec. 31... The Wall Street Journal says Amazon Prime has been a disruptive force in retail by making two-day shipping the new standard for all other online retailers. In the past year, Target, Walmart and many vendors on Google Express have all started offering “free” two-day delivery. The report says Overstock.com is the latest to offer free two-day delivery. The company says it can reach more than 99% of the U.S. in that time frame from a single distribution center in Kansas City, Kan... While Apple has always staggered the release of its latest iPhone models, this year, the company is rolling out its two priciest models first. The Wall Street Journal says the iPhone XS and XS Max, both priced at about $1,000, will be available today, five weeks before the cheapest of the new models arrive in stores. The move gives Apple time to get consumers to snatch up the higher-priced models without any competition from the lower-priced newbie... Nike has sold out 61 percent more merchandise since the controversial ad campaign featuring former NFL player Colin Kaepernick appeared earlier this month. That’s according to the New York Post, citing data on Nike’s online sales from Thomson Reuters Proprietary Research. That research showed the world’s largest sportswear maker sold out far more items between Sept. 3 and Sept. 13 than in the 10-day period before the ad came out... Darden Restaurants shares hit a 52-week high yesterday after the company posted better-than-expected fiscal first-quarter earnings, buoyed by strong sales at most of its restaurants, and a raised outlook for 2019. The stock is up more than 22 percent since January. The restaurant group, whose eight brands include Olive Garden and LongHorn Steakhouse, said net income rose to $166.2 million, or $1.32 per share, from $119 million, or 93 cents per share, a year ago.

PAGE 2 The Daily News of TV Sales @ www.spotsndots.com

NETWORK NEWS Fox has ordered a 10th season of cooking competition MasterChef from Gordon Ramsay, which concluded its current edition Wednesday. The show looks for the next batch of talented, passionate and skilled home cooks to compete for the coveted white apron... Academy Award winner Jordan Peele is about to enter another dimension: He’s about to dive into The Twilight Zone. He’ll be host and narrator in the forthcoming CBS All Access series, which will be a modern reimagining of the original, which premiered in 1959 and continued through 1964. Creator Rod Serling also served as original host and narrator. The Twilight Zone is set to begin production this fall and is slated to premiere on CBS All Access in 2019... Deadline says ABC has given a production commitment to an untitled hour-long drama from Wonder Woman writer Allan Heinberg, who is aiming to bring a female superhero to television. Details are being kept under wraps by Marvel, but the drama is reportedly based on some of its lesser-known characters. Deadline says launching a new Marvel series has been a priority for ABC... The Meyers brothers (comedian Josh Meyers and late-night host Seth Meyers) have teamed for The Exceptional. The half-hour single-camera comedy series has been set at NBC with a script commitment. It’s the story of a condo resident (Josh) who stumbles into becoming president of the HOA board — and has to leave his bubble and engage with his neighbors and their problems... Fox has put in development the drama 100 Days Without Fear. It’s inspired by the life and blog of Michelle Poler, who embarked on a personal journey of self-discovery, vowing to conquer 100 of her biggest fears in 100 days... The Star Trek franchise is expanding on CBS All Access. The streaming service has announced Star Trek: Short Treks, four stand-alone short stories that will begin rolling out on Thursday, Oct. 4 ahead of the early 2019 Season 2 return of Star Trek: Discovery... TVLine says Beau Garrett is clocking out as hospital attorney Jessica Preston on ABC’s The Good Doctor. The surprise exit comes ahead of the premiere of Season 2 on Monday.

AIRLINES PUSH BACK ON TICKET-CHANGE FEES U.S. airlines are fighting to keep control of the nearly $3 billion passengers pay annually to change their flights, The Wall Street Journal reports. House and Senate lawmakers are negotiating a bill to reauthorize the FAA’s operations ahead of a Sept. 30 deadline. Within it, some want to include a provision that could limit fees passengers pay to change flight reservations. U.S. airlines received $2.9 billion in such fees last year, federal data show, as carriers push to get more from surcharges and services beyond base fares. Bag fees brought airlines another $4.6 billion in revenue in 2017. But Airlines for America, which represents most major U.S. carriers, is denouncing the regulatory efforts, calling them “an existential threat to our business.” The trade ground contends that fares, including baggage and change fees, are 40 percent lower than 40 years ago, adjusted for inflation.

AVAILS WKMG-TV/Graham Media Group’s CBS Affiliate located in beautiful Orlando, FL has an opening for an experienced Account Executive. We are looking for an AE who’s highly motivated, can grow revenue on existing accounts and secure new advertisers. Ideal candidate will have in-depth knowledge of television and digital advertising platforms. You will have a proven track record of producing revenue on multiple platforms, strong new business development experience, the ability to negotiate effectively and strong closing skills. CLICK HERE for

more info or to apply now. E.O.E. KCCI, the market-leading Hearst Television CBS affiliate in Des Moines, IA is seeking an experienced National Sales Manager. You will work in one of America’s most recognized cities for business climate and quality of life not to mention its central role in political discourse and advertising. The ideal candidate will have a keen attention to detail. KCCI will provide “best in class” multi-platform products,

and excellent compensation. Click HERE to apply. WATCH. EOE. Account Executive: KTVU/KTVU+ (SF Bay Area) seeks an AE to maintain & improve existing client list & generate new business on our FOX stations/websites. Involves local travel to call on regular and prospective clients. Bachelors’ Degree plus 4 years major market experience in transactional & online advertising is required. Must have a valid CA driver’s license with a good driving record. Qualified candidates should submit their resume and cover letter on-line at www.ktvu.com/jobs. EOE/M/F/Disabled/Veteran KXLF Communications has a rare opening for a Director of Sales to lead the advertising sales department for KBZK-TV and KXLF-TV the CBS affiliated television stations in Bozeman and Butte, Montana. The DOS is responsible for actively recruiting a sales staff that will consistently improve the station’s position as the market leader, and maintaining a positive, energized sales team. 2-3 years of media sales management and/or equivalent sales and management combined experience required. College degree or equivalent experience preferred. Resume and references to: hr@kbzk.com. EOE. Local Sales Manager: Spectrum Reach is looking for a dynamic sales leader to manage and drive revenue in the Reno, NV market. The LSM will build and direct a cohesive team of Advertising Account Executives, develop market approach plans, create, communicate and execute sales plans and other market initiatives to meet and exceed expected revenue goals. Three or more years management experience in Cable, TV broadcast, Radio (or other media), business to business sales, and a Bachelor’s or Master’s Degree are required. Resume to: pat.miller@charter.com. EOE.

9/21/2018

Conan O’Brien

I’ve left instructions that after I die, I’m to be cremated and sold as a

detergent additive.

The Daily News of TV Sales @ www.spotsndots.com PAGE 3

TOUGH TIMES AHEAD FOR HOUSING MARKET? The Wall Street Journal says the U.S. housing slowdown can be blamed on a number of factors, all of which are likely to get worse. Earlier this week the Commerce Department reported that single-family housing starts increased a modest 1.9 percent last month from July, leaving them below the levels they registered in the spring. Single-family permits, which measure how much construction is in the pipeline, fell to their lowest level in a year. Other housing measures, including existing and new home sales, have also been slowing in recent months. The reasons for the weakness: Mortgage rates are near seven-year highs, and rising prices are cutting into affordability. A tight labor market and steep construction material prices are raising builders’ costs. And the new tax law’s limit on deductions for mortgage interest and state and local taxes makes owning a home less enticing in a number of states. Those headwinds could become even stiffer: The Federal Reserve is on course to keep raising rates through next year, and long-term rates are again on the rise. In addition, a strong economy will likely keep driving unemployment lower, making the shortage of construction workers even more intense.

STUDY: GEN Z SHOPPERS LIKE PHYSICAL STORES Chain Store Age reports the majority of Gen Z shoppers prefer to shop in brick-and-mortar stores — especially when the locations are convenient. CSA’s report cites a survey of Gen Z shoppers (aged 18 to 22) by prescriptive analytics provider Profitect. It found that 42 percent of respondents prefer to shop in stores vs online. Thirty-four percent prefer to shop in stores and online equally, while 23 percent indicated a preference to shop online only. When asked what holds the most influence on choosing to shop at a particular store over another, 48 percent of Gen Z respondents selected convenient location. Additionally, 65 percent said the most convenient method of returning an item purchased online is to go into the store.

THIS AND THAT Twenty-First Century Fox and Comcast are heading for an auction to settle a takeover of British broadcaster Sky. The bidding process officially begins Friday evening (in the U.K.) and ends the following day, Britain’s Takeover Panel said, with a maximum of three rounds to decide the outcome. Each bid must be made in cash... Nielsen says it’s been selected by DISH Media Sales to provide digital measurement on Sling TV and data segments for addressable advertising across both DISH TV and Sling TV inventory. The deal expands on DISH’s ability to utilize Nielsen currency measurement for its advertisers, adding Digital Ad Ratings for measurement of campaigns on Sling TV... Gray Television says it’s reached an agreement in principle with the NBC Network that extends and renews all of Gray’s existing NBC network affiliations, which otherwise would have expired at year-end 2018. Gray’s portfolio includes NBC-affiliated TV stations serving 26 markets.

MAGNA SEES 9% GROWTH FOR LOCAL TV IN ’18(Continued from Page 1)And OTT advertising will jump 40 percent to just over $2 billion. Magna says what’s driving brands is an ability to use data and technology to enhance TV campaigns, while simultaneously improving targeting and reducing waste. Yet the total spent is still small compared to the estimated $63 billion going into TV overall. “While addressable campaigns and OTT give significant additional information in terms of measurement, attribution and analytics, brands don’t want to sacrifice traditional TV

success metrics like reach, scale and cost,” Magna says. The U.S. economy helped grow total ad spending by 6 percent during the first half, according to Magna’s calculations. The Winter Olympics and World Cup helped too. As a result, it’s now predicting total overall growth in 2018 will be 5.2 percent. That’s a half-point increase compared to its June update. “The advertising economy showed robust growth in the first half, as the

strong economic environment benefits key sectors like finance, technology and travel,” Létang says. Magna expects another 4 percent increase in total ad spend in 2019.

PRO ATHLETES WILL SOON BE SELLING BEER AdAge says you can expect to see more pro baseball and basketball players in beer ads. It reports that Anheuser-Busch InBev just signed new deals with the players unions of Major League Baseball and the National Basketball Association, and “the pacts are a significant development because pro sports leagues have historically been reluctant to allow active players to promote alcohol.” Until now, beer companies often resorted to tapping former players to plug their products. Marcel Marcondes, AB InBev’s U.S. CMO, calls the MLB and NBA pacts “landmark” and says: “Fans are first and foremost connected to currently active players. ... That’s what drives the conversation.”

9/21/2018

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