3
www.spotsndots.com Subscriptions: $350 per year. This publication cannot be distributed beyond the office of the actual subscriber. Need us? 888-884-2630 or [email protected] Copyright 2017. The Daily News of TV Sales Friday, February 24, 2017 TV’S SHARE OF AD BUDGETS STILL STRONG AD BUDGETS CONTINUE TO INCREASE UBS, the Swiss global financial services company says ad budgets are strong and getting stronger - meaning bigger. Their January Advertising Pulse report noted that spending by U.S. agencies grew 6% over January of 2016. This is considered a healthy trend by UBS citing the 5% growth in the fourth quarter of 2016. And it’s an improvement over the 4% year-over-year growth in December. Five of the top-10 advertiser categories drove the increases. Those include Media, Pharma, Food, Restaurants and Financials. January spending on national TV, including digital TV, was up a very healthy 6% year-over-year. The report is primarily based on analysis of data gathered by SMI, which includes ad spending by 70% of U.S. advertising agencies that participate in the survey. SMI data shows marketers are still supporting TV, and the industry is maintaining its share of ad agency budgets. The total Television share of agency spend for January was 58.1%, up from 48.7% in December last year, and up from 51.8% for the fourth quarter. Breaking down the Television categories fully, the report found that national and local TV out performed all spending in January. A breakdown on the individual TV categories show that Cable TV took a 39.8% share in the month, with broadcast TV getting 38.0%. Spot TV’s share was 9.2%, syndication took 4.6% and local/MSO at 3.5%. It should be noted that the Local/MSO Cable was the fastest growing category in ad spending with a +33.1% increase year-over-year. Digital TV has a 2.2% share of the advertising dollar in January, dropping from the 2.5% share it took in December. The report went on to say that January saw a continued shift of budgets away from direct-sold display and search advertising (classified by SMI as “Pure Play - Content and Pure Play – Search) towards social and video. UBS believes that as in prior months, this reflects a move away from traditional display advertising. Such advertising is increasingly bought and sold programmatically. Dollars could be flowing to newer ad formats such as social, native or video. Share losses could also reflect deceleration in desktop search. UBS checks continues to indicated that mobile search remains an area of strength. The report concludes that ad budgets continue to increase at a healthy pace. The digital category continues to grow, but not at the expense of TV. ADVERTISER NEWS Kohl’s comp store sales were down 2.2% in the quarter that ended on 1/28 and off by 2.4% for the year as its CEO noted “declines in brick and mortar traffic…offset somewhat by strength in online demand.” During the year the chain opened 9 small-format Kohl’s but closed 19 full-size stores……Off-price retailer TJX has been outperforming traditional department stores for many quarters and just reported a 3% same-store sales gain (along with increased traffic) for the fourth quarter, completing its 21 st consecutive year of same-store gains. And TJX may become an even bigger pain to department stores— it’s announcing a test of a new home décor chain (as yet unnamed) to open four stores later this year that will be complementary to (and sell different merchandise from) HomeGoods. It’s a strategy that has already worked well for TJX’s two clothing chains, T.J. Maxx and Marshalls……Bloomberg reports McDonald’s will try to gain back foot traffic by cutting prices on drinks, such as $1 for soda and $2 for some McCafe beverages. The move could impact franchisees though—beverages are some of the highest-margin products in the restaurants……Texas Roadhouse had a 1.2% comp restaurant sales increase at company-owned locations in Q4 and a 2.0% bump at franchised locations. But both were well down from the first nine months of the year and the full fiscal year finished at plus 3.5% and plus 3.3% respectively……An interesting note about the results from Papa John’s—after reporting a gain that was smaller than anticipated, the CEO suggested some of the shortfall was due to the decline in NFL TV ratings that had been noticeable during the first half of the season……Havertys same-store sales were up 2.5% in Q4 with the average written ticket up 2.6%. Its CEO noted getting greater productivity from the existing store base is a primary focus and accordingly the company will open only one new store this year……La-Z-Boy’s retail operations were up 10.9% in its latest fiscal quarter, but of the core 199 stores that were open in the same quarter a year before, delivered sales were down 8.1%……(continued on page 2)

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Page 1: TV’S SHARE OF AD BUDGETS STILL STRONG - Spots n Dots · Show, ABC’s Good Morning America and CBS This Morning all saw reduced viewership the week of February 13th compared to

www.SpotsnDots.com

www.spotsndots.comSubscriptions: $350 per year.

This publication cannot bedistributed beyond the office

of the actual subscriber. Need us? 888-884-2630 or

[email protected] Copyright 2017.The Daily News of TV Sales Friday, February 24, 2017

TV’S SHARE OF AD BUDGETS STILL STRONGAD BUDGETS CONTINUE TO INCREASE UBS, the Swiss global financial services company says ad budgets are strong and getting stronger - meaning bigger. Their January Advertising Pulse report noted that spending by U.S. agencies grew 6% over January of 2016. This is considered a healthy trend by UBS citing the 5% growth in the fourth quarter of 2016. And it’s an improvement over the 4% year-over-year growth in December. Five of the top-10 advertiser categories drove the increases. Those include Media, Pharma, Food, Restaurants and Financials. January spending on national TV, including digital TV, was up a very healthy 6% year-over-year. The report is primarily based on analysis of data gathered by SMI, which includes ad spending by 70% of U.S. advertising agencies that participate in the survey. SMI data shows marketers are still supporting TV, and the industry is maintaining its share of ad agency budgets. The total Television share of agency spend for January was 58.1%, up from 48.7% in December last year, and up from 51.8% for the fourth quarter. Breaking down the Television categories fully, the report found that national and local TV out performed all spending in January. A breakdown on the individual TV categories show that Cable TV took a 39.8% share in the month, with broadcast TV getting 38.0%. Spot TV’s share was 9.2%, syndication took 4.6% and local/MSO at 3.5%. It should be noted that the Local/MSO Cable was the fastest growing category in ad spending with a +33.1% increase year-over-year. Digital TV has a 2.2% share of the advertising dollar in January, dropping from the 2.5% share it took in December. The report went on to say that January saw a continued shift of budgets away from direct-sold display and search advertising (classified by SMI as “Pure Play - Content and Pure Play – Search) towards social and video. UBS believes that as in prior months, this reflects a move away from traditional display advertising. Such advertising is increasingly bought and sold programmatically. Dollars could be flowing to newer ad formats such as social, native or video. Share losses could also reflect deceleration in desktop search. UBS checks continues to indicated that mobile search remains an area of strength. The report concludes that ad budgets continue to increase at a healthy pace. The digital category continues to grow, but not at the expense of TV.

ADVERTISER NEWS Kohl’s comp store sales were down 2.2% in the quarter that ended on 1/28 and off by 2.4% for the year as its CEO noted “declines in brick and mortar traffic…offset somewhat by strength in online demand.” During the year the chain opened 9 small-format Kohl’s but closed 19 full-size stores……Off-price retailer TJX has been outperforming traditional department stores for many quarters and just reported a 3% same-store sales gain (along with increased traffic) for the fourth quarter, completing its 21st consecutive year of same-store gains. And TJX may become an even

bigger pain to department stores—it’s announcing a test of a new home décor chain (as yet unnamed) to open four stores later this year that will be complementary to (and sell different merchandise from) HomeGoods. It’s a strategy that has already worked well for TJX’s two clothing chains, T.J. Maxx and

Marshalls……Bloomberg reports McDonald’s will try to gain back foot traffic by cutting prices on drinks, such as $1 for soda and $2 for some McCafe beverages. The move could impact franchisees though—beverages are some of the highest-margin products in the restaurants……Texas Roadhouse had a 1.2% comp restaurant sales increase at company-owned locations in Q4 and a 2.0% bump at franchised locations. But both were well down from the first nine months of the year and the full fiscal year finished at plus 3.5% and plus 3.3% respectively……An interesting note about the results from Papa John’s—after reporting a gain that was smaller than anticipated, the CEO suggested some of the shortfall was due to the decline in NFL TV ratings that had been noticeable during the first half of the season……Havertys same-store sales were up 2.5% in Q4 with the average written ticket up 2.6%. Its CEO noted getting greater productivity from the existing store base is a primary focus and accordingly the company will open only one new store this year……La-Z-Boy’s retail operations were up 10.9% in its latest fiscal quarter, but of the core 199 stores that were open in the same quarter a year before, delivered sales were down 8.1%……(continued on page 2)

Page 2: TV’S SHARE OF AD BUDGETS STILL STRONG - Spots n Dots · Show, ABC’s Good Morning America and CBS This Morning all saw reduced viewership the week of February 13th compared to

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

NETWORK NEWS Brad Garrett (Everybody Loves Raymond, Fargo) has been cast in the new CBS drama pilot The Get. Garrett will join a cast of tireless internet journalists pursuing and exposing injustice using unconventional investigative techniques. The pilot comes from writer and executive producer Bridget Carpenter and CBS Television Studios……. Actress Anne Heche will star opposite Mike Vogel in the new military pilot from NBC called For God and Country. Heche’s character is the head of operations for the Defense Intelligence Agency in the drama. For God and Country is described as “a heart-pounding look” into the complex world of the bravest military heroes making personal sacrifices, while executing challenging and dangerous missions behind enemy lines……Lee Daniel’s music drama Star has been renewed for a second season by Fox. The series has not been delivering the same size audience as Daniel’s Empire, his other drama on the network. Star is currently averaging a 1.4 Nielsen18-49 rating and 4.46 million total viewers. Fox says that with linear and digital platform viewing, the average per-episode viewership is up to 7.5 million……Fox also announced the renewal of a second season for Lethal Weapon. The reboot of the 1980’s buddy-cop franchise has delivered solid ratings for the network thanks in large part to airing before Empire. The series premiere delivered a 3.2 18-49 Nielsen rating, the highest-rated fall premiere for Fox in two years……Paula Abdul will play herself in a currently unnamed comedy pilot at NBC. The project comes from Kourtney Kang and is based on Kang’s life. It explores what it’s like to grow up as the only girl in a mixed-race family in the Philadelphia suburbs. Young actress Isabella Russo was previously cast in the lead role. Abdul recently announced she would not be returning as judge on Fox’s So You Think You Can Dance……Actress Jamie Chung has been cast to the role of Blink in the new X-Men pilot at Fox. Chung has been cast as a series regular playing a mutant with the power of teleportation. Chung is known for playing Mulan on the ABC series Once Upon a Time and had a role the Fox drama Gotham……NBC’s Today Show, ABC’s Good Morning America and CBS This Morning all saw reduced viewership the week of February 13th compared to the same week last year. The Today Show was down 12% in total viewers, while GMA was off by 6%. CBS This Morning was only down 2% in total viewers. Good Morning America maintained its overall lead in total viewers with 4.638 million.

ADVERTISER NEWS (continued from page 1) ...Here’s an odd twist: Although Tempur Sealy has withdrawn product from Mattress Firm’s owned stores, it will continue to sell at all Mattress Firm franchisee-owned stores, amounting to 47 markets (not necessarily the same geography as DMAs) in 17 states. Products includes the Stearns & Foster and Sealy brands……The 3000 retailers who report numbers to the Ace Hardware co-op were up 4.4% in same-store sales in the fourth quarter. Ace added 152 new stores during the year and dropped 100, with the store count now at 4,363.

AVAILS WKRN News 2, the ABC affiliate in Nashville, TN and a Nexstar station, is currently seeking a Dynamic and passionate Local Sales Manager to lead our local efforts. The LSM will be involved in all aspects of the sales operation, including overall budget and market share performance, accurate forecasting, inventory control and team development. The successful candidate will be a motivational leader with a clear focus on new business

and digital revenue development. Qualified candidates should apply at www.wkrn.com. EOE/M/F/V/D - No calls please! NBC Connecticut (West Hartford) is looking for a dynamic, aggressive Account Executive who will develop a solid understanding of our ad products and have solid consultative selling skills to be able to best develop solutions to meet client needs and close deals. Revenue closure, account relationship

building, customer satisfaction, and product implementation success are key responsibilities. Minimum 1 year of sales experience and a Bachelor’s degree required. Get more info or APPLY HERE. EOE KELOLAND, (Sioux Falls), one of the top CBS affiliates, seeks an experienced, high performing, multi-platform media seller who is interested in a rare opportunity to join the best team and sell the best platforms in the KELOLAND market. Candidate must be willing to move at a fast pace and be capable of successfully contributing to all revenue streams with both new and existing clients. Our AEs are well compensated and perform at market leading levels. CLICK HERE for more information or to apply right away. (Job ID: KLO-000048) Do you like telling a story and digging into numbers and demographics? WNCN, Nexstar Broadcasting’s CBS affiliate in Raleigh-Durham has a Research Associate position available. This person will be a resource for the local staff and clients on the retrieval and massaging of research data. Candidates must possess the ability to format data and effectively present station in a sellable / advantageous position in a fast-paced environment. 2-3 years of working with NSI/Nielsen products and services WideOrbit Media Sales/Traffic and Kantar preferred. APPLY HERE. EOE. Do you dream of a well-balanced professional and personal life? Are you interested in living in a community that offers an abundance of fresh air where you can hike, bike, boat and hunt…right outside your doorstep? KTVO ABC and CBS is located in Kirksville MO, serving the Kirksville MO\Ottumwa, IA market, has an opening for a Sales Manager. We are looking for someone who is motivated to learn and grow in this position. Are you ready to make a move that will advance your career AND the quality of life you have been looking for? Apply on line at www.sbgi.net.(Job 7626) EEO/Drug Free

2/24/2017

Seth Meyers

Scientists are saying people who grow up with cats in their homes are not more likely to develop mental illnesses. No, the mental

illness comes first.

Page 3: TV’S SHARE OF AD BUDGETS STILL STRONG - Spots n Dots · Show, ABC’s Good Morning America and CBS This Morning all saw reduced viewership the week of February 13th compared to

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

NADA: USED CARS BRING IN BIG PROFITS The difference between the percentage of revenue produced by sales of new and used vehicles, and the percentage of gross profit contribution from the two departments, is remarkable. At the average domestic dealership last year, sales of new vehicles produced 57.97% of the store’s revenue, but just 27.83% of its gross profit. Used vehicles, however, produced almost as much gross profit (24.9% of the dealership’s entire gross) on just 30.4% of its revenue. For dealerships selling domestic brands, new vehicles sales were 58.17% of revenue and just 29.0% of gross, while used vehicles were 31.0% of sales and 27.0% of gross. Dealerships specializing in imports got 23.0% of their gross from used vehicles sales that were only 29.8% of total sales, while new vehicles produced 57.78% of total revenue with just a 26.76% contribution to gross profit. And even for those luxury brands that averaged $52,296 for a new vehicle, those vehicles produced just 22.66% of a luxury store’s gross from 55.45% of revenue, while those dealerships got an 18.5% contribution to total gross from used sales that were 31.1% of total revenue. The numbers also point out the huge profit contributions made by the Service, Parts & Body Shop department—at the average dealership those activities produced 47.3% of the store’s total gross profit on just 11.7% of its sales.

BUSINESS BYTES Just days after turning down a buyout offer from Kraft Heinz and its parent 3G Capital, Unilever announced it will start a review of strategic options, which could include divestitures such as some of its food businesses or acquisitions (Colgate-Palmolive has been speculated as a possible target). The review may have been prompted by a sharp decline in share price after the bid from Kraft Heinz was rejected……After having made a deal to license its Craftsman brand, Sears Holdings has made its first deal to monetize the Kenmore brand. California-based Permasteel will manufacture and sell a line of Kenmore and Kenmore Elite-branded gas grills to other retailers. Sears says it’s “the first step” to get money out of the Kenmore name……Although The Limited has closed its stores, Sycamore Partners is buying the e-commerce business and intellectual property of the retailer for $26.8 million, subject to bankruptcy court approval. Sycamore has several other retail investments including Belk, Nine West and Coldwater Creek….New research from Clavis Insight finds almost two-thirds of millennials shop online for groceries weekly. The 35-54 demo isn’t quite that active, although Clavis reports 84% of respondents in that age bracket say they shop online for groceries at least once a month. For the study as a whole, cost is cited as the primary reason to shop online, with convenience and need also seen as significant drivers. 69% of millennials also reported using smartphones when in bricks-and-mortar locations, either to check pricing, look at ratings and reviews, or to get more information about a product.

AVAILS Fox Television Oakland/San Francisco, KTVU & KTVU Plus, are looking for a Local Sales Manager who will be responsible for the sale of advertising time and digital assets to local/regional clients and agencies. We’re looking for a team player who is detail oriented and resourceful with the ability to motivate and develop a local sales team. 3 to 5 years’ major market broadcast sales experience and a Bachelor’s degree (B.A.) from four-

year College or university or equivalent work experience required. Got to http://www.ktvu.com/jobs to apply. EOE. Digital Sales Manager: Tribune Media / WGN-TV, Chicago’s Very Own has an immediate opening for an innovative leader and revenue generating catalyst. You would be joining a highly successful sales team that sells some of the most powerful second screens in Chicago: wgntv.com, TheWeatherChannel.com, and a multitude of audience extension

/ marketing services opportunities. If you have successful digital sales experience and you love to lead, coach, create, sell and help businesses grow, send a cover letter/resume to: [email protected] EOE.

Need to place a job in Spots n Dots? Do it ONLINE HERE, or send your listing to [email protected]

ECONOMIC NEWS Sales of previously-owned homes in January brought the seasonally-adjusted annual pace to 5.69 million, the highest number in more than ten years. Supply is tight: Homes available for sale were down 7.1% versus January, 2016 with just a 3.6 month supply up for sale as January was the 20th straight month in which inventory declined.

2/24/2017

Jerry Seinfeld

There is no such thing as Fun for the Whole Family.

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