Spots N Dots
The Daily News Of TV Sales
October 27, 2016
AUTO INCENTIVES UP DOUBLE DIGITS
SALES SEEN DOWN AGAIN FOR OCTOBER
With consumer demand for new vehicles leveling off, automakers have been increasing incentives to move sheet metal off dealer lots. With manufacturers due to report October sales next week, TrueCar reports that incentive spending by automakers averaged an estimated$3,587per vehicle this month, up 15.7% from a year ago, although down 2.6% fromlast month.
"As retail demand plateaus automakers will be forced to make the critical decision to cut vehicle production or increase incentives," saidEric Lyman, TrueCar's chief industry analyst. "Planned reductions byFCA [Fiat Chrysler Automobiles]andFordindicate a more disciplined approach to sales strategies going forward that will support a healthy automotive market."
The dollar-value of incentives being offered to buyers varies widely by maker, although most were up double digits from a year ago. The highest average incentive is $6,671 by luxury maker BMW (the 2017 X5 is pictured)—up 33% from the incentives that BMW offered in October 2016, as calculated by TrueCar. Fellow German company Daimler AG was next at $4,548, although that was down 7.3% from a year ago.
The Detroit Three are next: General Motors offering $4,417, up 13.8%; Ford $4.404, up 29.9%; and FCA $4,388, up 22.9% from October 2015. Also above the $4K mark are Nissan at $4,109, up 15.3%, and Volkswagen AG at $4,035, up 4.8%.
The biggest percentage increase was by Subaru, which doesn’t make a lot of use of incentives to boost sales numbers. Even with a 62.6% increase over a year ago its average incentive is only $1,130—the lowest of any maker reported by TrueCar.
Both TrueCar and J.D.Power/LMC Automotive are predicting that new vehicle sales will be down for October. Power/LMC expects retail sales to be down 0.8% on a selling-day adjusted basis to just under 1.10 million units—the sixth down month this year. Trucks/SUVs account for 62.2%—an all-time record for a month. Total sales (including fleet) are projected at 1.35 million, down 0.2% from a year ago. That would put the seasonally adjusted annual rate (SAAR) at 17.7 million, which is strong, but still down from 18.1 million a year ago.
TrueCar puts retail sales at 1.16 million and total sales at 1.36 million. That would produce a SAAR of 17.9 million.
ADVERTISER NEWS
Apple has reported that sales of the iPhone are down for the third successive quarter and the company is forecasting slimmer-than-expected profit margins over the upcoming holiday season. Analyst fear the news may mean that Apple has lost its tech superiority. A spokesman from Apple said that the company was “supply constrained” and it was selling all the smartphones it could make……The Commerce Department says new home sales rose by 3.1 percent in September to a seasonally adjusted annual rate of 593,000 units. New home sales rose in the third quarter compared to the April-June period, indicating strong demand for housing……The nation’s second-largest auto dealership group, Penske Automotive Group Inc., reported its net income rose 1.1% in the third quarter, while revenue increased by 3.9%. The company also reported that its cost of sales rose faster than revenue, and it experienced higher gross profits per unit sold in the United States...... Hyundai Motors posted its eleventh straight year-over-year decline in profit and warned that it may miss this year’s sales target. South Korea’s largest auto maker has experienced strikes by unionized workers at some of its plants, and the report warned that business conditions would worsen……Target Corporation has unveiled it’s 2016 holiday strategy, which includes free shipping on online orders from October 25th through January 1st. Also, the retailer will offer new exclusive and curated merchandise, and introduce Wondershop, a shop-in-shop with more than 2000 seasonal items for shopper’s tree-trimming needs……Staples has announced that it will incorporate IBM’s Watson technology to enhance its pilot Staples Easy System. The office supply retailer recently announced that it plans to turn its toy Easy Button into a real device to allow customers to order supplies. The company said the Watson-enabled system will leverage machine learning to be able to make product and service recommendations based on the customer’s past orders and current needs……The relatively new category of meal-kit services like Blue Apron and HelloFresh are simultaneously booming, but are struggling to retain customers. A report from IOIOdata, reviewed by Fast Company, found that only half of Blue Apron customers stick around after the first week of service. Meal-kit services came on the scene in 2012 and are expected to generate $1.5 billion in sales in 2016……Canadian Retailer, Spence Diamonds is opening new stores in the U.S. with the Austin, TX location opening November 7th. Other markets on the expansion list include San Jose, CA and Scottsdale AZ. Additional markets will be announced in the near future.
NETWORK NEWS
NBC Olympics executive producer, Jim Bell said he was “shocked” that only 3% of Olympic viewing of the Rio Games came via digital platforms. Bell was the keynote speaker at the inaugural LiveFonts event, a streaming-centric conference sponsored by Brave Media. He went on to say that he had expected the digital share of viewing to be more like 25%, and added that 75% of the money made on the games came from the broadcast network……16-time Grammy winner Sting will appear on a future episode to NBC’s The Voice. The date of the appearance was not announced, but it’s safe to say that it will be around the release of the singer’s new album, 57th & 9th, on November 11th...... This past weekend’s episode of Saturday Night Live delivered its biggest audience for an October show in the last eight years. The episode with host Tom Hanks and musical guest, Lady Gaga, posted a Nielsen 18-49 rating of 2.4 and 8.65 million total viewers. The demo rating is better than a couple of NBC’s prime dramas like Timeless and The Blacklist...... The CW slate of Christmas specials this year includes a brand-new series called Terry Crews Saves Christmas, presented over five nights beginning on December 20th at 8 PM (ET). Also on the schedule is a first run and encore of Grandma Got Run Over by a Reindeer on Friday November 25th at 8 PM (ET) and again on Monday December 12th at 8 PM (ET). Other specials include Greatest Holiday Commercials Countdown on Monday December 12th at 8 PM (ET), The Top 12 Greatest Christmas Movies of All Time on Wednesday, December 14th, iHeartRadio Jingle Ball 2016 at 8 PM (ET) on December 15th and the 85th Annual Hollywood Christmas Parade, with Olivia Newton-John as Grand Marshall, presented on Friday, December 16th at 8 PM (ET)……Meet the Press with Chuck Todd on NBC won the race among the Sunday morning public affairs programs. The program delivered a year-over-year growth of +3% in total viewers and was up 25% in the A25-54 demo. ABC’s This Week with George Stephanopoulos had enough to finish second, but was down 7% in total views and off by 14% in the news demo. Chris Wallace rode a wave of critical acclaim for his performance moderating the third and final presidential debate. Fox News Sunday with Chris Wallace posted a 6% gain in total viewers and a 12% gain in A25-54. Univision’s Al Punto delivered its most-watched episode of the season with a year-to-year increase of 5% in the news demo. Face the Nation on CBS was preempted by the network’s coverage of the NFL NY Giants-LA Rams game from London.
TUESDAY RATINGS
The Cleveland Indians’ 6-run rout of the Chicago Cubs was a Nielsen ratings winner for FOX. The game delivered a 5.4 preliminary rating in 18-49. The reminder of the prime line up was not affected that much by the World Series. NBC’s This Is Us was off by two tenths from last week with a 2.4, still better that its lead-in, The Voice, with a 2.1 demo rating. Chicago Fire was down a tenth to a 1.6. For CBS, NCIS (1.7) and Bull (1.5) both dropped a tenth off last week, while NCIS: New Orleans got a tenth of a point boost to a 1.3. ABC’s sitcom lineup took some small hits with American Housewife (1.5) and Fresh off the Boat (1.2) each down a tenth, while The Middle (1.5), The Real O’Neals (1.0) and Agents of S.H.I.E.L.D. (0.8) held steady. The Flash (1.0) and No Tomorrow (0.3) were flat from the previous week on The CW.
DELOITTE SEES A DIGITAL HOLIDAY SEASON
More consumers than ever plan to shop for holiday gifts online this year, according to the 31st annual holiday spending survey by Deloitte. And digital is also going to play a bigger role when it comes to shopping in bricks-and-mortar stores.
Half (50%) of survey respondents plan to shop online for gifts, giving the Internet a bigger lead than ever over discount/value department stores (43%), which rank as the No. 2 destination for gift shopping. This rise in web traffic could bring retailers more cheer from their e-commerce sales. Survey respondents anticipate they'll spend 47% of their budget online— matching what they plan to spend at physical stores for the first time. In prior years, people planned to spend more in the stores. Fewer people surveyed plan to visit standalone "big box" retail stores, dropping from 63% to 59% this year; traditional malls fell slightly from 53% to 50%, and independent stores not in a mall dropped four percentage points to 38%.
"The way people shop online is having a profound impact on holiday spending this year," saidRod Sides, vice chairman, Deloitte LLP and U.S. retail, wholesale and distribution practice leader. "Retailers must cater to that digital mindset long before someone walks into a store.”
66% of respondents expect they'll be "webrooming," looking at items online before making a purchase in a store. 50% will take part in "showrooming" by going to a store to look for an item, then searching online for the best price and making their purchase there instead of the store. But the good news for retailers with physical stores is that 43% of holiday shoppers surveyed expect they will use retailers' "buy online, pick up in store" feature.
THIS AND THAT
Comcast CEO Brian Roberts declined to comment on the newly-announced AT&T deal to acquire Time Warner in his quarterly earnings conference call, but told analysts that the combined Comcast-NBCUniversal is “working well together.” NBCU CEO Steve Burke chimed in that the content company has had a “wonderful experience” under Comcast ownership……Meanwhile, Burke expressed skepticism about near-term growth of new OTT competitors. He’s also not worried about the NFL ratings decline this year, noting that last season was particularly strong……New York Attorney General Eric Schneiderman announced that his office has reached separate $6 million settlements—for a total of $12 million in penalties and costs—with DraftKings and FanDuel, resolving lawsuits alleging false and deceptive advertising practices by the companies. The settlement agreements with the fantasy sports companies are described as “the highest New York penalty awards for deceptive advertising in recent memory”……Ad Age reports that GM and IBM have created a new in-car service called OnStar Go that will deliver location-based advertising to drivers.
DONE DEAL
John Drain, who joined Hearst Television in September 2010 as Senior Vice President, Finance, has been promoted to Chief Financial Officer.
AVAILS
Media General in the Tri-Cities, TN market, (CBS, ABC), seeks a Sales Manager. We're looking for a highly motivated, creative thinking, success driven sales manager to oversee all aspects of national sales, and manage a 3-4 person local sales team. Candidates should have a Bachelor’s level degree and a minimum of 3-5 years of experience in broadcast television or at a rep firm, and a thorough understanding of the national sales process. CLICK HERE for more info or to apply, Look forJob ID: JHL-000328.No calls. EOE M/F/V/D
Winter is just around the corner! If you would prefer to be selling where summer never ends, WPBF 25, the Hearst owned ABC Affiliate in sunny West Palm Beach has an opportunity for you! WPBF 25 seeks a sales superstar to join our team. The ideal candidate must have broadcast TV sales experience and possess the drive and ability to thrive on multiple platforms in a fast paced, highly competitive market. Your passion for developing new business will be encouraged and rewarded! CLICK HERE to apply. EOE.
Bright House Networks, Daytona Beach FL seeks an Account Executive. This position is responsible for developing local advertising revenue by organizing, building and managing a customer base from direct local retail businesses. This position will work in a highly collaborative environment with other company management to implement revenue generating programs and opportunities. Top candidates will have a proven track record of overcoming obstacles, achieving goals and engaging a diverse range of personalities. CLICK HERE for more info or to apply now. EOE
KTXL Fox 40 in Sacramento seeks a sales professional to manage a transactional list and develop new revenues across all platforms. Sacramento is a growing capitol city, offering an exceptional quality of life. Tribune owned Fox 40 offers terrific benefits, a positive work environment, and opportunity for growth. If this opportunity sounds like something you would like to pursue, Apply at www.tribunemedia.com job id #2016-44442. Previous experience preferred, and a working understanding of Wide Orbit and other broadcasts systems ideal. EOE.