Spots N Dots
The Daily News Of TV Sales
August 9, 2016
ADS MOST EFFECTIVE ON PREMIUM CONTENT
‘HALO EFFECT’ FROM CONTENT VALUE
Does it matter where a digital ad appears, so long as the viewer fits the advertiser’s desired target? Recent research by comScore finds that it does.
comScore conducted research to examine the branding effectiveness of digital display and video ads appearing on premium sites vs. other online publishers. The premium publishers were member sites ofDigital Content Next (DCN), which includes lots of major media companies across broadcasting, cable, newspapers and the most recognizable digital-only names. The non-premium publishers were sites which generally got bought through audience-agnostic programmatic platforms. comScore said the results demonstrate that premium publishers do drive higher brand lift effectiveness due in large part to the “halo effect” of the contextual environment in which ads are seen.
Display and video ads on DCN premium publisher sites had an average of 67% higher brand lift than non-DCN publishers, said comScore, “confirming that premium sites deliver premium performance.” The premium publishers were more than three times more effective in driving mid-funnel brand lift metrics, such as favorability, consideration and intent to recommend. The premium sites also had higher viewability and lower levels of invalid traffic.
“Since overall effectiveness for DCN publishers was 67% higher, and inventory quality was 11% higher, it implies that premium publishers drive 51% higher effectiveness due to the halo effect,” comScore concluded.
ADVERTISER NEWS
Walmart is buying Jet.com for $3.3 billion in the largest ever purchase of a U.S. e-commerce startup. Walmart says Jet has been adding about 400,000 shoppers a month and in its first year reached an annualized run-rate of $1 billion. Both Jet.com and Walmart.com will continue as separate sites……Steinhoff International Holdings, a South African company that does much of its business in Europe, is buying Houston-based Mattress Firm, the largest U.S. specialty mattress retailer based on the number of stores. Mattress Firm itself had been on an acquisition binge the last few years as it bought up other chains, and Steinhoff will take over about $1.4 billion of Mattress Firm debt……With big changes on the way in the beer business, Convenience Store News reports Diageo is looking to reposition its beer business with plans to release new beers and flavored malt beverages under the new name of Diageo Beer Company USA. Most recently the majority of Diageo’s investments have been put behind Guinness and Smirnoff Ice, but now attention will be shifted towards the Smithwick’s and Harp brands……Second quarter retail comp store sales for the True Value co-op were up 2.5% with growth in nine of the twelve regions members are placed in. Total profit, much of which gets rebated back to members eventually, rose 1.6%...... Lawn & Garden was reported as one of the better categories for True Value, but Scotts Miracle-Gro net sales for its fiscal quarter that ended on 7/2 were down 11% compared to last year. Some of that was due to a 6-day shift in Scotts’ fiscal calendar, but bad weather at the beginning of the quarter was also blamed……Value fashion retailer Cato, with 1,373 stores in 33 states, had a very tough July—Same-store sales were down 10%, pulling fiscal second quarter comps down to minus 6%...... Conflicting results in the restaurant business: Wingstop raised its guidance for the rest of the year after posting a 3.1% same-store gain in its latest quarter. Habit Burger Grill had a 4% same-store increase as a 4.3% increase in the average check made up for a 0.3% decline in transactions. But the Fiesta Restaurant Group consisting of Pollo Tropical and Taco Cabana saw comp declines at both chains of 1.4% and 3.8% respectively……CST Brands, subject of sales rumors after it announced a strategic review, had a very strong quarter with profit up 27% in its merchandise business and up 24% in fuel profits. It has 39 new stores under construction for its banners, including CornerStore, Nice N Easy, and Flash Foods. 7-Eleven and Circle K’s parent have been mentioned as potential buyers.
NETWORK NEWS
JessalynGilsighas been cast to replaceJoelle Carteras Jake’s wife Vanessa in season 7 ofScandal on ABC……Dana Walden—Chairman and CEO of the Fox Television Group—told reporters at theTelevision Critics Association summer press tour that there’s apossible11thseason ofX-Filesand went on to say thatthe network and the studio “have longer to plan,”and she would be happy to “get eight to ten episodes” of the popular series.Waldenalso announced thatFOXhad picked upBeatShazam, a new interactive game show based on the popular app.The VoiceExecutive ProducerMark Burnettand creator ofDon’t Forget theLyricsJeffApploffwill produce the program underShazamEntertainment……FOXalso announced thatMariah Carey will appear on the prime hitEmpireOctober 5thof this season. Season 3 ofEmpirewill begin on September 21stat 9 PM (ET).
SUNDAY RATINGS
TheSummer OlympicsonNBCeasily won the ratings competition on Sunday night with a 9.0 18-49 rating and a 25-54 rating of 10.7.CBSwas the only network to offer up original programming to counter the coverage from Rio.Big Brotherposted a 1.5 rating in 18-49.MedialifeMagazinestated in a reportthatratingwas 12% off from the previous week’s performance and was the second-lowest rating of the season.The otherCBSprogram of the night was the strugglingdrama,BrainDead.FoxandABCaired repeats……The viewership of the Olympic Games onNBCfromRiois lowerthan the viewership fromLondonin 2012. However, Sunday night’s ratingsimproved due toperformances by swimmersMichael PhelpsandKatieLadeckyand gymnastSimone Biles. Sunday night’s total viewers were up ninemillion from Saturday’s disappointing performance, according toNielsenand reportedbyVariety.
HULU DROPPING ADVERTISING
Hulu has been increasingly focused on its subscription service—and is preparing to launch a subscription-based “skinny bundle” OTT challenger to cable next year—so it’s not terribly surprising that Hulu is dumping its non-subscription service. The basic, free-to-consumers, advertising-supported offering is how Hulu began back in 2007. It offers mostly recent episodes of ABC, NBC and FOX shows for free viewing after an eight-day delay from their network airing. The parent companies of the three networks are all Hulu investors.
Those network shows are essentially moving to a new ad-supported OTT service, Yahoo View, under an expanded Yahoo partnership with Hulu. Yahoo View will also offer movies, foreign TV shows and other video content, some of which is simply moving over from the basic Hulu service. Yahoo, of course, is in the midst of being bought by Verizon for $4.8 billion.
FITCH: AUTO INDUSTRY BRACED FOR DROP
As auto sales near their peak, Fitch Ratings says the auto industry appears poised to withstand challenges posed by increased competition and anticipated declines in wholesale vehicle values. So Fitch is comfortable with the stability of the U.S. auto asset-backed securities (ABS) that it has ratings on.
Fitch expects annual US auto sales to peak at roughly 17.5 million in 2016 before falling back to around 17 million units in 2017 and beyond. "So far we are seeing encouraging signs of industry discipline as some manufacturers are pulling back on the production of poorer selling vehicles and adding capacity to produce hotter selling models," says Fitch analyst Stephen Brown. "But that dynamic could change quickly if competitive pressures intensify,” he warns.
In U.S. auto loan market, Fitch says competitive pressures are leading lenders to offer loans with longer terms where 72 and 84 month loan terms are becoming the norm. Strong wholesale markets have helped to mitigate this risk. "Our expectation is that competition among lenders, particularly in the subprime space will continue to intensify over the coming year," according to Fitch’s John Bella. The latest monthly update from Fitch puts delinquencies of 60 days-plus for prime loans at 0.36% in June—up from a year ago, but still low judged against the past 10 years. Sub-prime delinquencies were up more sharply to 0.47% and Fitch is expecting them to rise in the second half of this year.
With that said, Fitch said it maintains stable outlooks across the auto ABS sector “as we expect that the transactions that we rate have sufficient protection to weather the anticipated downturn.”
The used car market continued to be strong through July. Low interest rates, growing employment levels and low new vehicle supply levels continue to support demand and sales of used vehicles, Fitch said, which is buoying prices and supporting overall auto loan performance. However, the Fitch analysts say increases in vehicle supply in the second half of 2016 and into 2017 will push down used car values and slow asset performance as the market normalizes further.
HERE COME THE INCENTIVES
With automotive industry sales now recognized as slowing down by virtually all analysts, AutomotiveNews reports some manufacturers “are starting to fight the stagnating market with more aggressive incentives.”
According to Autodata, the Detroit 3 spent $655 more per vehicle on dealer and customer incentives last month than in July, 2015 to help drive an industry increase of just 0.5% in sales. Some of the imports went much higher than that, such as BMW increasing incentives by 42% and Volvo by 25%. “It’s an indication,” Ford’s Mark LaNeve said, “in a plateauing market that the major players are going to protect share. It’s a more competitive market than we’ve experienced in the last five or six years.”
And it’s not just slow-moving models that are getting the extra dollars behind them—even as light truck sales rose to 61% of all July deals, incentives on full-size pickups from Chevrolet, Ford and Ram were at least $1000 higher than last year. Still, sales of the Silverado and F-series were down in July, and Ram got just a 1.7% gain.
KIDS PICK FAMILY FOOD BRANDS
The parents might bring home the bacon, but it's probably the kids who pick the brand. Despite their size and obvious lack of discernible income, a new report from Packaged Facts says children have a disproportionate sway over household grocery purchases and decisions. And food marketers know it.
Survey data from the market research firm reveal that more than a quarter of parents (26%) learn about a new product as a request from their child. Kids aged 6+ in particular wield a considerable amount of purchasing power, but in reality brand loyalty is nurtured in children even younger.
"Children under age six are just as important to marketers as older children are because life-long dietary habits are established during this time period and brand loyalty begins," saysDavid Sprinkle, research director, Packaged Facts. "This suggests industry players should focus on product development designed to capture younger kids and gain allegiance from parents earlier to keep them involved with the brand throughout childhood."
Ultimately the items that end up in parents' shopping carts stem from an assortment of factors. Chief among them are: What brands or products are recognizable to the children;What parents deem healthiest and most nutritious for their children; What foods kids themselves enjoy eating; and, What's recommended by parents' peers either directly or through social media and online reviews.
The importance of the second factor—what foods are perceived as healthier options for children—can't be overstated, the report says. According to the Shopping for Health 2016 report from the Food Marketing Institute and Rodale, a product's healthfulness for children influences 91% of parents' food and beverage purchases. On a related note, Packaged Facts found that nearly half (46%) of parents consider nutritional value as a top influencer. These findings indicate the degree to which health and diet are influencing choices within the market. As the report found, healthy innovation is emerging within every segment of the kids food market, even among categories not typically associated with health, like sweet and salty snacks.
"Companies or brands dedicated to eliminating or reducing unhealthful ingredients will find a strong following of parents, particularly parents of the Boomer generation or those with kids aged 6-11. Likewise, the hidden veggie trend is most important to Millennial parents—reflecting this demographics' desire for functional foods," says Sprinkle.
BLACKOUT OVER IN MIAMI, NOT BOSTON
WSVN (FOX) is back on DirecTV in the Miami market, ending a blackout that began July 15. But while the satellite pay TV provider has come to terms with Sunbeam Television in one market, another blackout continues in Boston. That negotiation is made more difficult by next month’s switch of the market’s NBC affiliation from Sunbeam’s WHDH to an NBC O&O. But for now the Rio Olympics is airing on WHDH and Sen. Ed Markey (D-MA) is hopping mad that some of his constituents can’t watch the Games. He’s called on FCC Chairman Tom Wheeler to get involved to end the impasse. The Boston blackout also includes WLVI (CW).
NBCU PRODUCING FOR SNAPSHAT
Some of NBCUniversal’s top TV brands are going to have Snapchat shows as well under a deal between the two companies. First up, reports The Wall Street Journal, will be The Voice on Snapchat from NBC and The Rundown, featuring pop culture segments from E! News. Saturday Night Liveand The Tonight Show from NBC are also likely to participate. The NBCU sales team will sell advertising for the new Snapchat shows.
CADILLAC DEALERS UP IN ARMS
The newly-announced dealer incentive plan from Cadillac is not going over well with dealers. Automotive News reports that some state dealer groups are demanding that Project Pinnacle be scrapped. A sharply worded letter to brand chief Johan de Nysschen obtained by Automotive News charges that the plan picks winners and losers and will funnel a disproportionate amount of money to larger, urban dealerships. A separate letter to de Nysschen from a dealer trade group charges that Project Pinnacle may violate state franchise laws that prohibit manufacturers from price discrimination among dealers.
AVAILS
KOAT-TV, Hearst Television’s ABC affiliate in Albuquerque, NM, is looking for an experienced Account Executive. The ideal candidate is coachable, thrives in a goal-oriented team environment and has strong interpersonal skills. We will provide the tools – you provide sales ability, positive attitude, client focus, and desire to WIN! If you want to work for the best, we want to hear from you today! CLICK HEREfor more info or to apply! EOE.
Come join our team at WTOC-TV (CBS) in Savannah, GA. We are seeking a high-energy, results-driven Multi-Media Account Executive with a proven ability to drive local direct business. This outside sales position will be responsible for generating revenue by prospecting and selling advertising on WTOC, WTOC.com, the station's mobile applications and other related products. Position requires excellent organization, negotiation and customer service skills. Bachelor's degree in Advertising, Marketing or related discipline preferred.CLICK HEREto learn more or to apply now.No calls please. EOE
WTVG 13abc and CW in Toledo, OH, the #1 station in the DMA, is looking for a General Sales Managerto lead its broadcast and digital sales operations. The GSM is responsible for the performance of WTVG (ABC/CW) and includes all digital sales components. The ideal candidate will have a Bachelor's Degree, with a minimum of 5-10 years of recent television sales management experience including local, national and digital sales. Resume to: calls please. Gray Television Group, Inc., WTVG are an equal opportunity Employer.
WISH-TV/WNDY-TV/wishtv.com, Indianapolis seeksan outgoingAccount Executive with a self-starter mentality and a history of providing exceptional customer service. This individual must be able to develop and coach custom solutions for clients across television and digital platforms. Emphasis on new business development will be key for this individual where high earning potential and flexible work life balance can be met.Must embrace technology and exude a positive attitude at all times.CLICK HEREfor more information or to apply now. Search forrequisition # 15-00925. EOE/M/F/V/D
A skydiver in California just became the first person to jump out of a plane from 25,000 feet without a parachute and land in a net. Or as Southwest Airlines calls that, ‘Business Class.’
--Jimmy Fallon
Vice President Joe Biden performed a same-sex wedding for a pair of longtime White House staffers. Said the staffers, ‘But we’re just friends!’
--Seth Meyers
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SPOTS N DOTS
The Daily News Of TV Sales
August 9, 2016
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