Spots N Dots
The Daily News Of TV Sales
August 30, 2017
SOCIAL MEDIA DOESN’T DELIVER FOR ADVERTISERS
FULL SERVICE EATERIES HARDEST HIT
Big marketers like Procter & Gamble have publicly questioned whether digital advertising is translating into sales—and cut $100 million from those budgets in the process. Now new research backs up the notion social networks don’t move the purchasing needle.
Civic Science surveyed 1,909 Americans aged 13+ and asked which social media platforms influence them to buy a product or service. Eight-in-ten said they’d never made a purchase decision based on ads placed on social media.
For those who did say they were swayed, Facebook did the best. “Even as other social media platforms gain traction, Facebook still remains in a league of its own,” Civic Science writes in a blog post. But that’s a highly subjective position since just 16% of the social network’s users said they’d made a purchasing decision based on a Facebook ad.
Other social networks did even worse. Four percent said they’d bought something after viewing an Instagram ad. That’s twice the 2% who did the same after seeing a Twitter ad. And a mere 1% said a Snapchat ad influenced their purchase decision. Researchers say the survey has a margin of error of +/-1.3% which means it’s statistically possible Snapchat ads literally had zero impact on anyone.
How does that stack up to TV? While Civic Science didn’t ask about television a recent survey conducted by Deloitte found 47% of viewers reported TV ads have a “medium” influence on their purchase decisions. Another 18% said TV ads have a “high” rate of sway. Only recommendations from friends and family members had a bigger impact than TV advertising according to the Deloitte survey.
The data showing social media’s lack of influence seems to back up a study released by Duke University’s Fuqua School of Business which has found few marketers able to show ROI on social media ad spending. The latest CMO Survey released this month shows 44% of marketing executives felt social media’s impact was nonexistent or minimal. That compared to just 10% who felt social media contributed a lot to the company’s performance.
Nevertheless, spending on social media is alluring. CMOs reported their companies allocate an average 11% of their marketing budget to social media and that share is expected to increase to 19% during the next five years. Professor Christine Moorman, director of the CMO Survey, thinks the reason many marketers aren’t happy with the performance of social media is partly tied to the fact that most companies haven’t linked social media to their overall advertising and marketing strategies. The CMO Survey found that 46% use social media to build brand awareness, 29% use it to introduce a new product, and 28% use it for a brand promotion.
ADVERTISER NEWS
Best Buy beat expectations with a 4.9% increase in total domestic revenue and comparable store sales growth of 5.4%, partially offset by the loss of revenue from 11 large format stores and 42 Best Buy Mobile store closures. The company had been predicting a full-year total sales gain of about 2.5%, but it’s now raising that estimate to approximately 4%……Fitbit will challenge Apple with a smartwatch in time for the holiday shopping season. The Fitbit Iconic will be priced at $300 and offer some functionality that doesn’t require being hooked up to a phone…… The athletic footwear segment has been a tough one this year and Finish Line issued a preliminary estimate for the fiscal quarter that ended on 8/26 to have been a 4.6% drop in same-store sales. Earlier this month competitor Footlocker had reported an even-worse 6.6% comp store drop. Finish Line operates 950 stores in malls and inside some Macy’s stores……It had been widely expected that Amazon would dramatically lower prices at Whole Foods Market after it took the chain over on Monday. Progressive Grocer did some comparison pricing and has reported a wide variety of price cuts from 10% on some items such as eggs to 33% on some meats and fish……While some supermarket companies have been creating their own branded meat kits, Southern California chain Gelson’swill sell meat kits made by Chef’dat its 25 stores. In this rapidly-emerging business, Chef’d ranks about eighth in the category according to recent research, trailing industry leaders Blue Apron and Hello Fresh……We reported yesterday on the slight improvement recorded by quick-serve hamburger restaurants in the latest quarter, and Nation’s Restaurant News is pointing out the gains have been coming from the Big Three, McDonald’s, Burger King, and Wendy’s, taking back share from their smaller competitors. All of the Big Three had reported same-store gains while chains like Jack in the Box (down 0.2%), Sonic (-1.2%) and Steak ‘n Shake (-3.1%) suffered declines in their latest reporting periods……One of those smaller competitors, Freddy’s Frozen Custard and Steakburgers, is having a strong expansion year and will move into its 31st state (Mississippi) later this year. Now at 270 locations, Freddy’s has opened 35 new locations already this year and plans to open approximately 20 more before the end of the year…… Automotive News reports midsize sedan sales are down 18% January-July, but there are hopes the launch of new-generation Toyota Camrys and Honda Accords will give some help to the segment along with the redesigned Nissan Altima that will reach dealers early next year. An analyst sees the Camry and Accord launches as two of the biggest three for 2017 (along with the Tesla Model 3).
NETWORK NEWS
Not Ready, an autobiographical single-camera comedy has been given a script commitment plus penalty from Fox. The autobiographical project is from Speechless writer-producer Niki Schwartz-Wright, Fred Savage, Jake Kasdan, 20th Century Fox TV and Nahnatchka Khan’s studio-based Fierce Baby Productions. The show is based on Schwartz-Wright’s real life and tells the story of her struggle to embrace the harsh realities of being a grown-up while dealing with her fun-loving, unconventional family. Savage is attached to the project as director. Khan’s Fierce Baby Productions has two put pilot commitments at Fox, an ensemble romantic comedy written by Billy Finnegan (Grace & Frankie) and for the comedy Revival created by Sally Bradford McKenna……Minnie Driver (Speechless) will reportedly return to the Will & Grace reboot on NBC this fall, according to TV Line. On the original show, Driver played Lorraine, a woman who has slept with Karen’s (Megan Mullally) husband Stanley Mullally’s character then marries Lorraine’s father, played by John Cleese, becoming her stepmother. Driver will appear in one episode of Will & Grace, which begins production this week. The premiere of the reboot will be Thursday, September 28th on NBC……ABC has put into development a new single-camera comedy that follows a man in a same-sex marriage, who moves back in with his Mexican-American family in the heart of Texas, where he struggles to navigate his family’s deep-rooted traditions. Casey Johnson and David Windsor, creators of The Real O’Neals, are on board the project as executive producers with Rob Sudduth (Telenovela, GCB, The New Normal, the Crazy Ones, Red Band Society) writing the script……In other development news, CBS will develop a new drama series called Family Business from a couple of CBS veterans. Barbara Hall (Madam Secretary) and longtime CBS executive Glenn Geller are producing the show along with CBS TV Studios. Family Business is about a multi-generational CIA spy family whose story is told through the eyes of its youngest siblings. They all struggle with rivalries, secrets and making their own mark in the Intelligence Community……Fox is returning to multi-camera comedies with a put pilot commitment for Suspended, a school comedy from Powerless executive producers and showrunners Justin Halpern and Patrick Schumackerworking with Warner Bros. TV. Suspended, written by Halpern and Schumacker centers on an honors government teacher who is accustomed to working with the best and brightest who ends up being put in charge of a bunch of students in in-school suspension. Fox, which has had success with multi-camera shows like Married…with Children and That 70’s Show, has stayed mainly focused on single-camera half-hour shows in recent years.... ABC’s American Idol had previously scheduled auditions in Houston on Saturday and in San Antonio on Monday. In a message on Twitter announcing the cancellations, the show said “The safety of the community is of the utmost importance and our thoughts go out to all those affected.”
FEW TOOK A BREAK FROM TV THIS SUMMER
With the summer TV season quickly coming to a close, Civic Science recently asked Americans about their television viewing habits during the summertime. The biggest number—43% said they watch the same amount of TV during the warm weather months as the rest of the year. But with more free time available 5% said they watch “a lot” more TV during the summer while another 7% said they watch “a little” more. That helps to offset the one-third who report they watch less TV during the summer.
Maybe it’s all the news that’s been breaking this summer that’s driving Americans to power up the TV. That’s because when Civic Science asked where they typically go for breaking news, 28% said their local TV news channel. That’s up 8% compared to a year ago. Interestingly, social media had the inverse trend line. This year 20% said they go there for breaking news compared to 28% last year. It could be the impact of the “fake news” revelations of the past year. Local TV news also tops national outlets. The survey shows 11% of Americans turn first to national network TV news while 6% prefer national cable news channels.
ECONOMIC RATINGS
As retailers were wrapping up the back-to-school season and starting to show displays for Halloween, Thanksgiving and Christmas, The Conference Board’s Consumer Confidence Index rose again with consumers’ assessment of their present-day situations near a 16-year high. The overall index climbed to 122.9, up from 120.0 last month, and the Present Situation aspect of it rose to 151.2 from 145.4. Economists have attributed the solid numbers to rising home values, a strong jobs market, and stocks being at or near all-time records, all of which bodes well for retail sales for the remainder of the year.
THIS AND THAT
With values of existing homes skyrocketing, owners tapping into their home equity for cash has become big again, making home-equity lines of credit and cash-out mortgage refinances back in vogue. The Wall Street Journal reports home-equity line originations rose by 8% in the second quarter (to almost $46 billion), the highest level since 2008. And cash-out mortgage refinances were up 6% to $15 billion. The interest rates are attractive - an average of 5.6%, much cheaper than most credit cards.... CNBC notes that with hundreds of auto dealerships closed and vehicle imports slowing down, or in some cases stopping completely, Hurricane Harvey is slamming the brakes on the auto industry in southeastern Texas. By extension, the entire industry will feel the impact of the storm that continues to inundate the Houston area. Citi analyst ItayMichaelihas cut his estimate for the rate of monthly auto sales in August, which are reported on Friday. Before Harvey, Michaeli estimated the August sales pace for the country was going to be in the mid-16 million range. As the storm lingers over the area, Michaeli has dropped his estimate. “Our analysis suggests that Hurricane Harvey could push this down to the low-16 million unit range.”
THE AMAZON EFFECT
Now that Amazon has taken over Whole Foods, the already low-margin supermarket business will likely become even more competitive. Amazon signaled even before officially taking over Whole Foods that it planned to cut prices on staples such as meat, eggs, and other items to build up traffic in its 470 stores, which it did on Monday, the first day of ownership.
Amazon has one big advantage: it doesn’t need to make money from its supermarkets operation yet, while publicly-owned competitors such as Kroger and Walmart do need to show a profit. In the weeks since the deal was announced, stock prices have dropped not just for competitive supermarkets, but also for consumer package goods makers who will have increased competition from Amazon’s and Whole Foods’ private labels and Whole Foods’ reputation for healthier food.
“Amazon’s using the same playbook they always have when competing with booksellers and other retailers,” a former Amazon exec told The Wall Street Journal. “They take out (competitors’) revenue stream by killing them slowly on price.”
RADIO SHACK RECOVERY
This Week In Consumer Electronics reports there are still about 425 RadioShack franchisees remaining in business, and in many ways, they are finding life can be better than it had been before the parent went out of business. One dealers told TWICE the inventory is flowing again, the demise of corporate stores has helped demand at the remaining units, and there’s no longer any restrictions about expansion. A few new stores are planned to open this year, and the remaining dealers feel they’re now in charge of re-growing the company. That may include opening new units in larger cities (population over 10,000) where corporate restrictions had existed to protect the company-owned stores in those areas.
AVAILS
WTAT, the FOX Affiliate in Charleston, SC, has an immediate opening for an experienced Account Executive well versed in both broadcast and digital sales. If you have a successful background of developing new business, as well as solid negotiating skills, we have a great opportunity for you in one of the most sought-after markets in the country! Must have at least 3 years Broadcast, Cable and/or Radio sales experience. Send resume to nd include “WTAT-Account Executive” in the subject line. No calls please. EOE.
KMSB/FOX 11 and KTTU/My18, the TEGNA-owned /managed stations in Tucson, AZ are looking for a highly motivated, driven, and creative Major Accounts Sales Manager who is up to the challenge of setting new records across multiple platforms. The MASM will lead, motivate and inspire the national sales team to exceed revenue goals and assist the LSM with local sales. This a terrific opportunity in one of the best lifestyle markets in the country. CLICK HEREfor more info or to apply now. EOE.
KELO-TV, the dominant CBS affiliate serving South Dakota, Southwest Minnesota, and Northwest Iowa, seeks a General Sales Manager. The ideal candidate is a strong leader with successful broadcast sales management experience, not just in TV sales, but with digital platforms as well. The GSM will ensure goal achievement through planning, setting systems for success, arranging appropriate training and accountability for team members to generate positive results. Minimum of 5 years’ experience in broadcast television sales management preferred. Qualified applicants can APPLY ONLINE. EOE M/F/D/V ~ Background screen required.
WHO-HD, the NBC affiliate in Des Moines, Iowa has an immediate opening for an experienced account executive. This position is perfect for a positive and motivated salesperson who loves the challenge of creating results for clients with strategic marketing plans that include TV, digital, and multicast solutions. To fit with our team, you must be enthusiastic, trustworthy, believe in doing your best, and dedicated to getting good results for your clients. Visit apply or email your resume to . EOE.
Are you interested in working in the “It City” of Nashville, TN? WKRN, Nashville’s fastest growing television station and #1 News website, is actively searching for an account executive to implement marketing strategies, develop new business and grow market share on existing accounts. WKRN is home of the CMA Awards on ABC, the Tennessee Titans Pre-Season, as well as the Nashville Christmas Parade, the local 4th of July and New Year’s Eve celebrations. CLICK HEREfor more info or to apply now. EOE.
One of the benefits of eating salad is that you can eat TONS of it...and never be satisfied.–Jim Gaffigan
Aging gracefully is like the nice way of saying you’re slowly looking worse.–One Liners
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SPOTS N DOTS
The Daily News Of TV Sales
August30, 2017
Phone: 888-884-2630