Spots N Dots
The Daily News Of TV Sales
November 7, 2016
LITTLE ADVERTISING AS HEALTH COSTS RISE
DOUBLE-DIGIT JUMPS FOR MOST PLANS
Open enrollment for the Affordable Care Act health insurance marketplaces—also known as Obamacare—is underway, but you’d hardly know it from the lack of promotion this year. While it’s possible there could be some advertising seen once the election ads domination of the airways passes, it’s unlikely there will be anything like the spending seen in past years. Rather than competing for market share, many insurance companies are cutting back on participation—and some have left the marketplace exchanges completely
For consumers, the average premium for the benchmark “silver” plans will shoot up 22% this year, according to a report by the Department of Health and Human Services (HHS). That makes it a hard sell to people with limited income. HHS still insists that for people eligible for government subsidies under Obamacare, 72% will be able to find plans on HealthCare.gov for less than $75 per month. And that percentage rises to 77% for premiums under $100 per month. HHS also says people shopping for health insurance on the marketplace exchanges will have an average of 30 plans to choose from. The recent headlines, though, have focused on counties where only one insurer remains.
Health insurance premiums are also rising for plans in the private sector—something that may impact our readers more than the lack of Obamacare-related advertising. An annual survey by Sherlock Company, a health insurance consulting company, finds that 2017 premium rates for Group Commercial plans are rising an average 6.8%. For Individual Commercial plans, the average premium increase is 22.3%--right on par with the government marketplace.
ADVERTISER NEWS
After testing the idea at some stores in Ohio and Texas, McDonald’s will roll out larger and smaller versions of the Big Mac early next year. The Mac Jr. will be a single-layer Big Mac easier to eat on the go and the Grand Mac will be a third-pound version of the classic. The Wall Street Journal suggests slowing sales and traffic have generated concerns that the turnaround at Mickey D’s started by all-day breakfast has lost steam already……Papa Murphy’s is planning its first-ever national ad campaign for next year, after a quarter in which systemwide same-store sales were down 5.8% and company-owned stores fell by 7.7%. Its CEO said “the increasingly competitive environment…magnified the effects of lower absolute media levels in this Presidential election year”……Red Robin Gourmet Burgers’ same-store sales were down 3.6% at company-owned locations, with customer counts down 2.4% and average check down 1.2%. “We won’t rest until traffic is positive,” the CEO said, “and even then we won’t rest”……Costco domestic same-store sales were up 2% in October excluding the impact of gas…….Noting that a calendar shift moved Halloween into its November sales report, Fred’s comp store sales were down 3.4% for October. That completed a fiscal third quarter in which comps were down 3.8% and it suspended its prior guidance for the rest of the year……Although Sprouts Farmers Market comps were up 1.3% in its fiscal third quarter, net income fell by 25%. With food price deflation a factor in the supermarket business, the chain blamed lower margins and increased promotions for the profit decline……New store additions were the primary reason for a 1.2% increase in Murphy USA merchandise sales, as comps in existing stores fell by 2.6%. Flooding in Louisiana and the shutdown of the Colonial Pipeline impacted business at the Arkansas-based chain, which continues expansion with 28 more stores currently under construction……Humana, still trying to get regulatory approval for its merger with Aetna, reported a quarterly profit 39% better than last year’s third quarter. Its heavily-advertised Medicare Advantage plan membership rose 3% to 2.8 million compared to a year ago and the percentage of premiums paid out for members’ healthcare costs fell from 83.9% last year to 81.5%...... Automotive News reports Fiat Chrysler is starting to follow General Motors’ game plan by cutting back on low-profit fleet sales, especially to car-rental companies. October fleet deliveries for FCA were down 23% compared to an overall drop of 11%. Part of the strategy is based on ending production of the Dodge Dart compact and Chrysler 200 sedan to free up plant capacity to build more pickups and SUVs.
NETWORK NEWS
Veteran stand-up comic Dave Chappelle will be the host of NBC’s Saturday NightLive on November 12th. It will be the first episode of SNL after the election and Chapelle’s first turn as host. Chapelle’s musical guest will be A Tribe Called Quest……. A new character based procedural drama is being developed at TheCW network. Marlowe is based on real-life, Jamaican immigrant and World War I veteran, Samuel Marlowe.The series will be written by Devon Gregory (CSI: Cyber) and will be produced by Aaron Kaplan’s KapitalEntertainment……NBC has given a put pilot commitment to writers Jack Burditt and Charlie Grandy (The Mindy Project) to develop a new comedy called All Stars. The comedy will center around a group of very different families who are bound together by their children’s 10-and-under all-star baseball team……ABC has announced that Michael De Luca and Jennifer Todd have been named producers of the 89th Annual Academy Awards telecast. Both are industry veterans and currently serve as co-chairs of the PGA Awards. Jimmy Kimmel’s name had been floated as a potential host, but is currently out of the running……NCIS, the CBS Navy crime drama, has named George Schenck and Frank Cardea as co-showrunners to replace Gary Glasberg, who passed away suddenly in September. Schenck and Cardea have been writers on the series since the first season in 2003…… The Simpsons got a renewal for an unprecedented season 29 and 30 for a series total of 669 episodes. That total over takes Gunsmoke, the previous record holder with 635 episodes. The Simpsons in now the longest-running scripted TV show of all time……. Sander/Moses productions has sold a new drama project to ABC. The Disrupters will be written by Carla Kettner (Bones), while Kim Moses will serve as executive producer. The series will center on the efforts of a former high powered Hollywood executive and an idealistic physician who, with their staff of brilliant misfits, advocate for the best possible medical care for their patients.
WEEKEND RATINGS
With the World Series over, Hawaii Five-0 returned to the top on Friday night, scoring a 1.2 Nielsen rating 18-49 and leading CBS to an overall 1.1, with an average 8.86 million viewers. Shark Tank on ABC had a 1.1 and led the Alphabet Net to an average 1.0 18-49 and 4.72 million. Hell’s Kitchen also had a 1.1 for FOX, with The Exorcist steady at 0.7 for an average 0.9 18-49 for the net and 2.64 million. NBC was at 0.8 18-49 and 4.09 million; with The CW at 0.3 18-49 and 0.77 million.
College Football, with Alabama beating LSU, delivered Saturday primetime to CBS with an average 2.9 rating 18-49 and 9.83 million total viewers. ABC’s game, Ohio State over Nebraska, registered 1.4 18-49 and 5.07 million. NBC, with the Breeders’ Cup, 0.5 18-49 and 2.78 million; and FOX, with reruns, 0.3 18-49 and 1.36 million. Saturday Night Live was strong at 2.8 18-49 on NBC.
ELECTION ADS: TWO DAYS REMAIN
It all comes down to tomorrow. And while the 2016 election hasn’t been quite the windfall that was expected, MediaPost reports that the presidential candidates have been increasing spending in the final days—with a greater share going toward local TV versus national TV. Since September 25, Hillary Clinton has spent 71.6% of her ad budget on local ads—$45.3 million—and 28.4% on national TV—$18 million—based on data from iQ Media. Meanwhile, Donald Trump has spent 85% on local—$64.5 million—and 15% on national TV—$11.5 million.
The report says Republican candidate Trump finally ramped up ad spending in October, averaging $2.5 million in daily ad spend by October 12. But as the election drew nearer, Democrat Clinton really stepped on the gas, at one point spending over $7.5 million per day on local TV October 29 through November 2. Trump, meanwhile, was at $3.5 million.
But Clinton’s local TV spending soared October 29-30 through November 2 -- at one point, to over $7.5 million. Trump’s local spending was $3.5 million.
MediaPost says Clinton’s heaviest spending has been in Philadelphia, Cleveland and Miami-Ft. Lauderdale. Trump was also spending big in Philadelphia and Cleveland, along with New York, Denver and Los Angeles.
CHINESE FIRM BUYS DICK CLARK PRODUCTIONS
Dalian Wanda Group (Wanda) has jumped into U.S. television production in a big way with a $1 billion purchase of dick clark productions (DCP), which bills itself as the biggest producer of television events. Those include the Golden Globe Awards, American Music Awards, Billboard Music Awards, Academy of Country Music Awards and, of course, the annual New Year’s Eve countdown from Times Square begun by the late Dick Clark in 1972. The company he started was bought by private equity firms, led by Guggenheim Partners, for $370 million in 2012.
Wanda is headed by Wang Jianlin, China’s richest man. You may well hear of him again, since he has publicly declared an interest in making big investments in U.S. movie and television studios. When the transaction closes, DCP management will remain in place, including Chairman Peter Guber, CEO Allen Shapiro and President Michael Mahan.
MORE TROUBLE FOR VOLKSWAGEN
As Volkswagen AG is trying to wrap up U.S. penalties for its emissions test cheating software on diesel engines, the German newspaper Bild am Sonntagreports a new scandal. It says the California Air Resources Board (CARB) found cheating software on an automatic transmission Audi with a gasoline-powered engine. The software allegedly detected steering wheel motion to reduce CO2 emissions when a car was in a laboratory environment. The newspaper says the software could be in hundreds of thousands of cars.
ACCOUNT ACTIONS
Sprint named Droga5 as creative agency of record, succeeding Deutsch. Sprint spent over three-quarters of a billion dollars on advertising last year, according to Kantar Media……Following a review, MediaPost reports that Moroch Partners, Dallas, was named agency of record for two new McDonald's markets: the Northeastern Co-ops and the Mid-Kansas Co-ops, the latter of which is the largest Co-op in the U.S. in terms of geography. Stern Advertising previously handled both accounts……Tilted Kilt Pub & Eatery has named The James Agency, Scottsdale, AZ, as national advertising and digital AOR, including both creative and buying. The Celtic-themed chain based in Tempe, AZ operates more than 95 restaurants in the U.S. and Canada, with about 20 more in development.
THIS AND THAT
U.S. non-farm payrolls rose by a seasonally adjusted 161,000 in October, the Labor Department reported, and the September figure was revised upward to 191,000. The official unemployment rate ticked down to 4.9% from 5% the previous month……Another Labor Department report says worker productivity increased at a 3.1% rate in Q3—the best rate of growth in two years……The U.S. trade gap shrank 9.9% in September, according to the Commerce Department. Exports rose 0.6% as imports decreased 1.3%.
AVAILS
WTOK-TV, the dominant ABC affiliate in Meridian, MS seeks a news leader who loves news, loves to teach, loves to produce and loves to innovate. The WTOK News Director will be responsible for continuing the tradition of market leading standards, goals, and tactics for newsroom operations and content. The News Director will also be responsible for recruiting, hiring, coaching, mentoring, supervising and evaluating newsroom personnel.Applicants should have newsroom management experience, and a 4 year college degree is preferred. Send cover letter/resume to: .
Do you love a fast paced environment with unlimited income potential? Then, we have the opportunity for you!KOMO/ABC in Seattle seeks a Multimedia Sales Account Executive. This individual will generate local sales revenue and achieve established sales goals by selling television spot advertising and other sales programs. Goals are attached to various platforms, including: KOMO TV, KUNS TV, digital, business development and direct business.Strong understanding of digital, social and content integration.CLICK HEREfor more details or to apply now.EOE/Drug Free.
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
WTVM, THE local leader in business advertising solutions for Columbus-Auburn-Opelika, has a fantastic opportunity for an experienced Local Sales Manager. Must be a motivational leader with a clear focus on New Business and Digital development, helping insure our expanded sales force exceeds client expectations on any advertising platform. Our new LSM will motivate our Media Sales Consultants and their partner Success Managers to insure sales revenue goals are met and client needs are constantly addressed. Qualified applicants, CLICK HERE and attach resume & cover letter. No calls please. EOE-M/F/D/V
Bright House Networks, St. Petersburg, FL seeks a Regional Ad Sales Account ExecutiveThis person will generate advertising revenue by organizing, building and managing a customer base of Regional businesses and advertising agencies. The Regional Account Executive will develop high levels of competency to position Bright House Networks media products to successfully meet the needs of customers. Candidates must be self-motivated with a professional attitude. A minimum of two years’ experience in media sales required. CLICK HERE for more details or to apply now.EOE M/F/D/V
The Cubs won the World Series for the first time since 1908. That’s so long ago, the 2016 election hadn’t even started yet.
--James Corden
The Cubs won the World Series for the first time since 1908. If there were any Cubs fans still alive from the last time they won, they definitely died in the eighth inning.
--Jimmy Kimmel
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SPOTS N DOTS
The Daily News Of TV Sales
November 7, 2016
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