Spots N Dots
The Daily News Of TV Sales
January 11, 2017
GM FORECASTS RECORD PROFITS IN 2017
General Motors had a very good 2016 and expects to post record profits, and the automaker expects to have even higher profits in 2017. Based on 2016’s performance, and the strong outlook for 2017, GM’s board has approved a $5 billion share repurchase.
The Wall Street Journal says GM’s bright forecast is based on the continued strength of sales in North America, and especially strong sales of pick-ups, SUVs and crossover wagons. Additionally, demand for GM products in China is expected to remain strong. Those factors, along with cost cuts from better logistics and other moves are expected to improve the bottom line.
The forecast for GM’s 2017 pretax operating earnings per share, adjusted for any special items, is $6 to $6.50. That’s up from $5.50 to $6 that it expects to post when the company reports earnings on February 7th. Chief Executive Mary Barra told reporters ahead of an investor conference that the 2016 result should come in at the “high end” of that range. GM shares rose more than 4% after the company issued the 2017 forecast.
Lower gasoline prices and attractive interest rates are benefiting the company’s pickup truck and SUV business. Those categories make the most money for the nation’s largest automaker. GM also benefited in 2016 from a tax cut in China, the company’s biggest market. Sales there set a record of 3.9 million vehicles last year.
GM is also expecting growth in 2017 in South America, despite a recession and political unrest. However, executives view Europe with a lot of uncertainty based on the unfolding impact of Brexit.
Ms. Barra responded to a question about uncertainty created by President-elect Trump’s recent threats of a tariff of border tax on imported vehicles by saying it was too early to speculate on an eventual effect. She went on to reiterate the complexity of GM’s manufacturing footprint and the long lead times of production decisions.
GM could be more of a target for the President-elect than rival Ford Motor Company. WardsAuto reported that Ford, for the first 11 months of 2016, made the equivalent of 95% of the vehicles it sold locally. For GM that figure was 83%, while Fiat Chrysler was 69%. Ms. Barra said that GM doesn’t plan to rejigger production plans despite a threat of a “big border tax” from the President-elect for importing small cars from Mexico. Ford scrapped plans to build a new plant in Mexico last week after being the target of criticism from Trump, though Ford described it as a business decision that it would have made anyway.
ADVERTISER NEWS
It was during the fourth quarter of 2015 that news of Chipotle’s food scare broke, so the monthly comps for the fourth quarter of 2016 present evidence of a recovery against those numbers. Same store sales were down 20.2% versus October, 2015, down 1.4% versus 11/15, and up 14.7% against December ’15 when the food scare escalated ……Mars, Inc. is best known for its iconic candies such as M&M’s and Snickers, but the company has also become a force in the pet care business, owning brands such as Pedigree, Iams, Wiskas, and Royal Canin. Now the company is acquiring VCA and its almost 800 animal hospitals and diagnostic labs, in a deal expected to close in the third quarter. The Wall Street Journal notes Mars isn’t the only big food company looking to build up its pet food operations as both Nestle and J.M. Smucker have also been trying to gain share in the segment……Ford is expected to announce at the Detroit Auto Show that it will bring back both the Bronco SUV and the Ranger mid-size pickup truck. The Bronco had been phased out in 1996 (after having gained fame as O.J. Simpson’s getaway vehicle) and was replaced by the Expedition. The Ranger has never stopped production but is just been on sale in some foreign countries……Automotive News reports less than twenty Cadillac dealers have decided to take a buyout offered by the brands’ Project Pinnacle, which goes into effect in April 1st. The controversial program that puts dealerships into tiers to determine bonus payments from the factory had 832 of Caddy’s 924 U.S. dealerships sign up, despite heavy criticism from some dealer associations……Now there are four automotive brands having committed to Super Bowl spots with Lexus announcing a buy after skipping the big game last year. So far, no domestic manufacturers have bought time……While many other franchisors in various businesses are trying to lighten their load of company-owned stores by re-franchising, Party City Holdco is going in the opposite direction. It’s now buying 18 stores in four Southeastern states from a master franchisee, saying “Acquiring franchise stores over time is an integral component of our strategy”……Ollie’s Bargain Outlet reported just a 1.9% same-store sales increase for the nine week holiday period that ended on 12/31, but after a year of aggressive expansion, total sales for the two months were up 16.3%...... Albertson’s, whose Safeway chain will be part of the online food stamp test in three states, expanded home delivery to ten new markets last year with its Safeway, Vons, Albertson’s, Tom Thumb and Randalls banners.
NETWORK NEWS
Former Parks and Recreation and Master of None cast member, Aziz Ansari will make his first appearance as host of Saturday Night Live on January 21st. The musical guest is Grammy-nominated rapper Big Sean……ABC has pushed the air date for its TGIT line-up to Thursday, January 26th. The night begins with a new Grey’s Anatomy at 8 PM (ET), followed by the season six premiere of Scandal at 9 PM (ET), with How to Get Away with Murder at 10 pm (ET). The Catch will be added to the Thursday line-up once How to Get Away with Murder finishes its season. The network will air a pre-inauguration special called America’s First Family: The Trumps Go to Washington at 10 PM (ET) on Thursday, 1/19.... When We Rise, which chronicles the rise of the LBGT rights movement, will air in two-hour blocks over four consecutive nights beginning on 2/27. Beginning in March, ABC will air the new season of American Crime, a new drama called Time After Time along with the return of Once Upon a Time, on Sunday’s. A new comedy called Imaginary Mary will get a Wednesday preview before moving to Tuesday’s in the Spring, and Designated Survivor will return to the prime-time line-up in March. The network will close the season on May 24th with Dirty Dancing, and the new comedy, Dirty Dog, is being held for summer…Executives from Univision met with President-elect Donald Trump this week. The net says “Our Univision News Team will continue to cover the Trump administration with the rigor that we have brought to the coverage of every administration that preceded it.” Trump sued Univision last July after the network dropped the Miss USA pageant over remarks Trump make about Mexican immigrants……Jenna Dewan Tatum will serve as a host and mentor on the new NBC competition series, World of Dance.
TVs BIG AT CES—REALLY BIG
Small screens have been changing video viewing in recent years, with consumers and advertisers embracing mobile video. But when it comes to really enjoying video entertainment in a relaxed atmosphere, people want a bigger screen. And at the just-completed CES mega-show in Las Vegas the TV screens were bigger than ever.
LG, the leading vendor in OLED (organic light emitting diode) technology, unveiled a 77-inch “TV W” model. The Yahoo report from CES says the “W” stands for “wallpaper,” since the screen is just over one-tenth of an inch thick and is designed to be fastened directly to a wall. The price tag is right around $10,000.
Samsung, meanwhile, was showing QLED (“quantum” rather than just “organic”) as it claims the tech upgrade improves the brightness and color range over OLED sets. It was also displaying super-sized TV screens, as was Sony and other major makers.
Seemingly old-fashioned 4K TVs were also being shown at CES. The is that prices are coming down. TCL, a Chinese vendor, told the Yahoo reporter that it will be selling a 50-inch model for just $500.
ACCOUNT ACTIONS
Santa Monica-based RPA has been Honda’s primary shop for creative for more than twenty years and effective in April it will become the media agency of record for both Honda and Acura, replacing MediaVest which had been handling the business since 2013. Kantar Media figures estimated for the first nine months of last year Honda had spent about $373 million in paid media and Acura’s investments had been about $123 million……Mindshare has won the media planning and buying business for Tyson Foods’ major brands including Jimmy Dean, Ball Park and Hillshire Farm. Mindshare replaces BPN Worldwide’s Chicago office which had handled the account for three years. Adweek reports parent IPG will now fold the BPN organization into Initiative.
THIS AND THAT
We’ve been reporting on the bad news coming from the restaurant business for many months, but now Nation’s Restaurant News says some industry analysts believe conditions could start to improve as early as the second quarter of this year. Certainly the year-to-year comparisons will make matching last year’s numbers much easier but there’s also expectations that the price gap between restaurants and supermarkets will start to narrow then. However as chains continue to grow their store rosters, the industry’s overall sales may grow while existing stores’ year-to-year comparisons may suffer from an “oversupply” in their market……First Data’s Holiday 2016 SpendTrend study reports retail spending was up 3.6% in the holiday season, but when non-retail such as travel, restaurants and leisure is added, total consumer spending was up 4.7%. Here’s no surprise: online was the big winner, up 12% to account for about 21.3% of all holiday spending. Overall spending at bricks-and-mortar stores was up 1.6%, with the best results coming from the West and Midwest. By category, electronics and appliances fared best, up 8.5%, but women’s ready-to-wear retailers had the worst season, down 3.7%.
MORE BUSINESS INVESTMENT EXPECTED
Despite the assumption of rising interest rates ahead, The Wall Street Journal reports U.S. companies are preparing to invest again after years of holding back. They’re expecting some pro-business initiatives from the Trump administration including regulatory rollbacks, corporate tax breaks, and infrastructure spending, leading towards a greater inclination to put money back into growing their businesses.
Many of the companies’ profits in the past few years went into efforts such as repurchasing shares at the expense of efforts such as building new facilities or upgrading equipment.
There’s no direct correlation between big capital investments and marketing and advertising budgets, but optimism at the board level can well be expected to lead to enhanced efforts to reach consumers.
AVAILS
KOCO 5, the Hearst Television ABC affiliate in Oklahoma City (41st DMA and growing), has an opportunity for a highly motivated Account Executive. The AE will be required to bring in new businesses to advertise on the TV and web.Exceed your goals utilizing the top syndicated programming, OU and OSU football, OKC Thunder NBA, OKC’s #1 web & mobile sites, and MeTV. Must be organized, with strong presentation skills, and a passion for developing new business. CLICK HERE to submit your resume and cover letter. EOE.
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. At least five years broadcast sales experience, management experience, and college degree preferred. Candidates must have a thorough knowledge of ratings and the ability to create presentations utilizing comparative values. APPLY HERE. EOE.
E.W. Scripps seeks a qualified, dynamic, driven leader to join our market leading team. We are currently seeking a high-energy, multi-tasking Local Sales Manager to join our sales team at KMGH-TV in Denver. The LSM is responsible for leading and motivating the local sales team, and negotiating agency and local direct business. The LSM will also assist the Director of Sales in training, development and motivation of local sales team Minimum 3-5 years media sales experience, management experience strongly preferred Apply at www.scripps.com, job #12408. EOE.
KOLD News 13, the Raycom-owned CBS affiliate in sunny Tucson, AZ is looking for a dynamic, self-motivated, idea driven Local Sales Manager with a proven sales history who exhibits strong leadership skills and the ability to recruit and inspire the best talent. Candidates must demonstrate skills such as; training new account executives, negotiating direct and agency business (local and national) and have experience and a desire to focus on digital, non-traditional and new business initiatives. CLICK HERE for more info or to apply now. EOE.
Buckeye Broadband, Toledo, Ohio is looking for a Local Sales Manager. We need an energetic and creative individual to manage our advertising sales team as we imagine and craft the future of TV advertising. Must be customer focused and able to supervise and assist sales reps to reach their goals! 5 years Media Sales Management experience in the same or similar medium, and a history of developing non-traditional revenue are required. CLICK HERE for more details or to apply now. EOE.