Spots N Dots
The Daily News Of TV Sales
November 23, 2016
SOME AUTO DEALERS’ PROFITS TUMBLE
NADA: ADVERTISING EXPENSES ARE UP
Although new vehicle sales have remained ahead of last year for most months so far in 2016, some dealerships, especially those selling “mass-market” brands, are already seeing profits fall behind what they had achieved last year.
The National Automobile Dealers Association (NADA) has now reported September data to give a picture of the health of local dealerships as the year enters its critical fourth quarter—and while all segments of dealers are still ahead in year-to-date (Y-T-D) sales, the same cannot be said for profits.
The “average” dealership, taking all brands and all sizes of dealerships into calculations, is 5.8% ahead in sales after nine months, but with expenses up 6.6%, total operating profit is down 32.5% and net profit before tax is down 2.5%. Dealers of imports are doing a bit better in net profit, up 1.7%, but dealers of domestic brands’ nets are down 7.1%. That’s despite the fact that through the year’s first nine months, dealers’ sales of new vehicles from domestic manufacturers are up 6.1% while dealers’ sales from imported new vehicles is up a smaller 4.5%. Rearranging dealerships into “mass-market” and “luxury” designations regardless of origin, dealerships selling mass-market brands have seen profits fall by 4.8% through September, while luxury brand dealerships’ net profits have actually gone up by 10.4% (with new vehicle selling prices up 7.4% to $52,890).
The average dealership is spending 6.1% more on advertising this year and that amounts to 8.5% of total gross sales. Advertising expense is higher for mass-market dealers (9.0% of gross) and significantly lower for luxury brand dealers, just 5.9% of gross.
With sales of new vehicles starting to weaken, dealerships are turning to other departments to make up some of the shortfall. At the average dealership, sales of used vehicles are up 6.4% for the first nine months with the used vehicle department now 30.9% of total sales. The average used-vehicle selling price is up 3.3% to $19,873 and the retail gross profit per vehicle sold is $2,466 (as usual, better than the retail gross profit on a new vehicle which is $2,062).
Dealerships are also getting more help from their Service, Parts & Body Shop operations. Sales from those activities are up 7.6% compared to the first nine months of 2015, with warranty work growing to become 18.3% of the revenue dealers get from that department.
NADA calculations through October show total dealership sales of cars are down 9.3% Y-T-D, with imported cars off by 11.1% and domestics down 8.7%. Light-duty trucks still remain positive at plus 6.9%, making the total retail market down 0.2%.
ADVERTISER NEWS
A new study from IHS Markit finds the average age of vehicles on the roads has grown to a new record of 11.6 years with almost 1 in 4 vehicles still in operation built before 2001. Markit predicts that five years from now, about 20 million vehicles on the road will be at least 25 years old. That’s seen as offering a good future for auto aftermarket retailers such as AutoZone and O’Reilly Autoparts, as well as an opportunity for dealers to profit via their service departments……The Detroit News says Honda is ready to launch a “hurricane” of new products next year, including a Civic hatchback available with a manual transmission priced under $20,000. Although 14 automakers have been impacted by the Takata airbag problems, Honda’s reputation is said to have suffered the most due to 10 deaths in Honda and Acura vehicles……As the jewelry segment enters its most important season, Signet reported blended same-store sales down 2% for the third fiscal quarter, citing particular weakness at its Jared units (down 4.6%) and softness in sales of watches. Kay comps were down 2.9% and Zales was off by 1.0%. Weakness in energy markets was also noted.....Groupon has started its first-ever holiday TV campaign to establish it as a source of a wide variety of holiday gift ideas, including “the most popular products and amazing local experiences all in one place”……Retail drug chains are also looking to take a bigger share of the holiday shopping dollars. Among Rite Aid’s deals, Plenti members will get 30% off online purchases during Cyber Week next week and free shipping for orders of $35 or more. CVS is countering with $20 in Christmas Bucks for ExtraCare members who spend at least $50 in seasonal merchandise……Jack in the Box beat profit expectations in the third quarter with systemwide same store sales at JITB units up 2% and up 0.8% at Qdoba. Most Jack in the Box units are franchised, only 417 of the 2,255 locations are company-owned. Qdobas are more evenly split with 367 company-owned locations of the 699 total units……Furniture Today says online mattress retailer Casper may be looking to open bricks-and-mortar stores. The “bed-in-a-box” e-tailer already has a deal in place with Williams-Sonoma’s West Elm stores, and in less than three years in business, Casper has become number two on Furniture Today’s list of bedding e-tailers……Kroger continues to slowly roll out delivery service and will utilize Shipt for deliveries in the Memphis market starting on 12/1. Users can buy Shipt delivery for $14 a month or $99 a year.
NETWORK NEWS
Emma Stone will host Saturday Night Live on December 3rd. Stone will be joined by musical guest Shawn Mendes……CBS has not ordered additional episodes of Pure Genius past the its initial 13-episode first season. The series will wrap production on season one on December 15th and will theoretically remain in contention for a second season, though its chances are considered slim at best. All produced episodes are expected to air and the show remains on the schedule at 10 PM (ET) Thursday nights……Late Show host James Corden is set to host the 59th Grammy Awards. It will be Corden’s first time hosting the music awards event, replacing NCIS: Los Angeles star, LL Cool J, who has hosted for the past five years. Corden earned critical praise as host of the Tony Awards in June. The 59th AnnualGrammy’s award show will be broadcast on CBS Sunday, February 12th at 8 PM (ET)……NightShift star Ken Leung has exercised his option to leave the NBC medical drama after 3 years. The show wanted Leung back, but he decided to pursue other opportunities. Night Shift has been a solid summer performer for NBC and was renewed for a fourth season last week……Liz Meriwether, the creator of the FOX comedy New Girl, will be writing and producing a new female-centered single-camera project for the network. Thin Ice has landed a pilot order and will center around a woman who reclaims her dreams when she finds herself in Antarctica surrounded by a group of brilliant misfits. Meriwether will share writing duties with Ed Macdonald and Mark Grimmer……ABC will be developing a new drama based off a 2012 Belgian series. Salamander will center around a brilliant but misanthropic engineer who recruits a skeptical FBI agent to track down a mysterious bank robber. Executive producers Andrea Nemec and Jeff Pinkner will also write the adaptation……Saturday Night Live’s Molly Shannon is set to appear on the CBS comedyLife in Pieces. Shannon will play a private chef hired to cook a romantic Valentine’s Day dinner. Everything goes haywire when she has too much to drink. The episode is expected to air in February.....Gotham is expanding its cast with the addition of James Remar. Remar is set to play Frank Gordon, Jim Gordon’s uncle on the FOX series. The character is described as a master playing both sides, a man that knows how to keep a secret. Remar had roles on Dexter, Grey’s Anatomy and Sex and the City and he received a nomination for a SAG award. The date for Remar’s debut episode was not released.
MONDAY RATINGS
Ratings were mostly consistent for the networks with NBC’s The Voice again finishing first with a 2.1 Nielsen 18-49 rating, down by two tenths from last week. Timeless at 10 PM (ET) held steady with a 1.2 demo rating. For ABC, the Dancing with the Stars season finale, Part 1, scored a 1.8 rating, up a tenth from the previous week, while Conviction managed a 0.8, even with last week. The ABC affiliate in San Francisco opted for Monday Night Football, so the ABCratings are subject to more adjustment than usual. Kevin Can Wait, the new CBS comedy fell a tenth of a point to a 1.5, while Man with a Plan posted a 1.3. The remainder of the night for CBS shook out this way with 2 Broke Girls pulling a 1.4, The Odd Couple a 1.1 and Scorpion getting a 1.2. Gotham delivered a 1.1 and Lucifer did a 1.0 for FOX.The CW’s Supergirl got a 1.0 and Jane the Virgin did a 0.6, but the numbers will be adjusted as the CW affiliate in Houston pre-empted the network and aired Monday Night Football.
WEEKLY RATINGS
NBC and the NFL took the top two spots for the week of November 14th. The SundayNight Football telecast delivered a 6.2 18-49 Nielsen rating, while the network’s first telecast of Thursday Night Football posted a 4.2 demo rating. The SNF pre-game show, Football Night inAmerica, had a 3.3 demo rating for third place. The Big Bang Theory on CBS posted a 3.1 on Thursday night to tie with Empire on FOX for 4th place. 60 Minutes on CBS tied with NBC’s new hit This is Us for 6th with a 2.6 rating for each. ABC’s American Music Awards was 8th pulling a 2.4 demo rating and NBC’s The Voice Monday night edition was 9th. The top ten was completed by ABC’s Modern Family delivering a 2.2 rating in the demo. Lethal Weapon on FOX and Speechless on ABCboth delivered a 1.7 rating for the best performance of the new shows for the week. ABC’s American Housewife posted a 1.6, while Kevin Can Wait on CBSdid a 1.6. The CBS drama Bull was the other new show in the top twenty-five with a 1.5 rating.
BIG DEAL FOR ADDRESSABLE ADS
Three big players—AT&T, Dish Network and WPP—have teamed up to buy Invidi Technologies, a company which provides media companies with addressable television advertising platforms. Financial terms weren’t disclosed, but AT&T will hold a controlling interest. Invidi will continue to operate independently, with AT&T, Dish and WPP all naming representatives to Invidi’s board of directors.
Dish and AT&T’s DirecTV already use Invidi’s technology for addressable TV ads. Invidi’s software lets advertisers deliver addressable video advertising to the target audience — on TV and across multiple distribution platforms. Ads are delivered via Invidi’s technology to target households that can be matched to thousands of demographic or psychographic attributes, or to a custom list provided by an advertiser. The company says this lets advertisers and media buyers accurately control reach, separation and frequency across video platforms.
“Invidi gives us a great opportunity to expand our addressable advertising capabilities,” said Rick Welday, President, AT&T AdWorks.
ACCOUNT ACTION
Adweek quotes “several reliable sources” saying that wearable tech company Fitbit has awarded its media buying account to IPG’s UM after a review. The companies declined to confirm the report. One source estimates the value of the account at $200 million.
DONE DEALS
WDIV (NBC) Detroit, a Graham Media Group station, announced two new sales executives. John Cook has been named National Sales Manager. Cook most recently was the station’s Digital Sales/New Business Manager, a role he took over in 2014. Justin Pontz, an eight-year veteran of the station, has been named New Business/Digital Sales Manager.
HOLIDAY ADVISORY
Spots n Dots returns Monday, November 28. Our offices will be closed Thursday and Friday for our staff to enjoy Thanksgiving with their families.
AVAILS
ABC 7/WJLA-TV in Washington DC has openings for Account Executives. The ability to uncover new business sales opportunities while juggling multiple projects is required, as is two years outside sales experience. The right candidate has the drive and the passion to be top biller. Experience selling across multiple media platforms, including broadcast television, digital television and the internet is a plus. We’ll provide all the tools you need to grow your career and your income. CLICK HERE for more info or to apply now.EOE.
Cox Media Group Charlotteseeks a highly talented Director of Sales with a proven track record of recruiting and developing sales talent and achieving revenue success. Are you a leader who gets real satisfaction in coaching people to achieve their full potential? Do you have a proven track record of recruiting and developing A+ sales talent? Do you tailor your management approach to each individual on your staff? 3-5 years of experience, a proven track record as a GSM, and a college degree preferred.CLICK HERE to apply.EOE.
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 25seeks 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.
WZDX TV in Huntsville AL is searching for a General Sales Manager.The GSM oversees all aspects of the sales department, including staff management, advertising inventory throughout all channels, revenue goal setting and achievement, and budgeting. The GSM also determines inventory, pricing and discount rates, and has direct responsibility for national sales efforts. Qualified applicants can CLICK HEREfor more information or to apply now.Equal Opportunity Employer.
WNCN, CBS North Carolina has an immediate opening for a traffic liaison. The position supports the sales department with inventory management and maximization and is responsible for accurately and effectively maintaining logs and clearing oversells. The liaison also works closely with our central traffic hub double checking the dub list, looking for missing copy and going over the log once released to make sure there are no issues.CLICK HERE to get more info or to apply now. EOE M/F/V/D Background check and Drug screen required.
WSBT-TV, South Bend/Elkhart, IN is looking for a Local Sales Manager to lead our local CBS and FOX sales departments in maximizing all sales opportunities with an emphasis on new business development and NTR. The LSM will oversee new local business efforts, including accountability for new business goals and inventory management. Candidates should have a proven success in developmental business and multimedia platforms including web and mobile applications.College Degree preferred. CLICK HERE for more info or to apply now. EOE.
New Media Digital Marketing Strategist - Wilmington, NC. CBC New Media Group is seeking a Digital Marketing Strategist to develop customized digital solutions for businesses in the Wilmington area.Prior experience with digital marketing services (PPC, SEO, WordPress, Display Advertising), and prior sales experience in marketing or advertising ideal. All candidates must APPLY HERE.All Capitol Broadcasting Company properties are tobacco free.Capitol Broadcasting Company participates in E-Verify.EOE M/F
Nexstar Broadcasting seeks an experienced Local Sales Manager for KCWI-TV in Des Moines, IA. This is a rare and exciting opportunity to join the fastest growing broadcast group in the country, and oversee the sales success of our CW operation in Des Moines. The LSM must create a positive culture for success in the areas of new, direct, transactional and digital revenue through the idea generation and execution. Bachelor’s degree or equivalent combination of education and work related experience required. CLICK HEREfor more info or to apply now. EOE/M/F/V/D
Nissan is now offering a limited-edition version of its Rogue SUV to promote the new movie Star Wars: Rogue One featuring a collectible helmet, because nothing says ‘great car’ like a complimentary helmet.
--Seth Meyers
Apple has changed back their design of the peach emoji to look more like a butt after people were upset the new design no longer looked like a butt. So you see, people—sometimes democracy DOES work!
--Conan O’Brien
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SPOTS N DOTS
The Daily News Of TV Sales
November 23, 2016
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