Spots N Dots
The Daily News Of TV Sales
December 9, 2016
MARKETING OPPORTUNITIES IN ADULT BEVS
TOO MUCH FOCUS ON MILLENNIALS
A new IRI study analyzing the habits of U.S. consumers regarding alcoholic beverages finds that although drinks of choice differed among generations, consumers from Millennials to seniors continue to indulge in beer, wine and spirits products with regular frequency at home and on premise. IRI’s analysts say this regularity creates an immense opportunity for beverage alcohol manufacturers to engage with consumers and find new pockets of growth.
Today’s consumers drink consistently in restaurants and bars and at home. Drinking at home outperforms drinking on premise across all generations: Between 66% and 76% of consumers reported drinking at home at least once per week, compared with 23% to 26% who reported drinking once per week on premise. Millennials, Generation Xers and baby boomers make in-store shopping trips more than once per week, and 40% of buyers walk into the store undecided on what product to purchase. Of the 60% who do have a planned beverage purchase, 21% end up changing their mind in store, and 50% of those who changed their mind ultimately buy a different brand than they originally intended.
Although Millennials are increasingly representing a more significant portion of dollars for the alcoholic beverage category as they rapidly become of age, manufacturers and retailers should not discount the role of other generations. Although they only make up 33% of the U.S. population, baby boomers represent 45% of overall beer, wine and spirits dollar sales, 46% of wine sales, and 41% of sparkling wine sales. While it is important for beverage brands to develop a strong and sustainable core connection with the Millennial generation, IRI says they should also nurture the relationship with boomers, given that they account for nearly 50% of category volume.
Beer, wine and spirits companies should also pay attention to Generation X, which makes up 20% of total beer, wine and spirits dollar sales, a figure proportionate to their makeup of 21% of the U.S. population. Millennial and Gen X consumers are the most experimental in the type of alcohol they choose and enjoy trying different kinds of alcoholic beverages, both at home and on premise. At the time polled, Gen X consumers averaged 3.6 different types of alcohol at home in the past three months and 2.8 on premise, figures higher than those for boomers and seniors.
Currently, IRI says many CPG companies are extremely focused on Millennials, to the extent that they unknowingly may be neglecting Gen Xers and baby boomers. “In doing so, they are walking away from an enormous portion of consumers’ dollars,” the report says. For instance, boomers remain more likely than Millennials and Gen Xers to drink once a week or more at home, and they account for a robust 42% of overall wine category growth.
ADVERTISER NEWS
This Week In Consumer Electronics says T-Mobile is “about to rock the wireless industry yet again with another disruptive innovation.” The carrier is beginning consumer trials of a new Internet-based service called Digits, which allows multiple phone numbers on a single mobile phone and also gives subscribers use of their phone number on almost any internet-connected device including tablets, wearables, and computers. The company says research shows about 30 million Americans carry multiple devices and pay for multiple plans, sometimes carrying one phone for business and another for personal calls—the new offering would eliminate the need to do so……One advantage that Costco has over rival retailers is a second revenue stream via membership fees. While same-store sales grew by just 1% in the latest fiscal quarter (both with and without gas in the calculations), membership fees were up 6% to $630 million, which helped the company offset close to a 5% increase in expenses. Costco opened five new warehouses in the U.S. during the quarter to reach 506 here…… “Channel stuffing” (automakers forcing excess inventory onto dealers’ lots) along with large increases in incentives may have helped November sales of new vehicles, but Automotive News reports that activity caused used-vehicles prices to fall in November, the first time since April that the Manheim Used Vehicle Value Index had fallen. And despite relatively good November sales, the Chief Economist for Cox Automotive says dealers generally finished November with more inventory on their lots than they wanted……H&R Block’s most important quarter won’t start until next month, but for its most recent period, revenue was up 2% with help from its Peace of Mind extended service plan designed for customers who are audited……Michaels’ same-store sales were down 2% in the latest quarter due to less customer traffic and the chain is now projecting a flat-to-down 1.5% quarter ahead. The company says it has gained share in its retail segment but is facing aggressive discounting across the niche industry……Convenience Store News says McDonald’s will “reintroduce” McCafe next year to better compete with Starbucks and Dunkin’ Donuts. While highlighting a price advantage versus Starbucks, plans for the new campaign include special deals, more seasonal beverages, and increased marketing of the rewards program……Chipotle, however, continues to struggle. Even while waiting for a return of customers lost after last year’s food safety scare, the chain’s CEO told an investment conference that the customer experience is barely passable or failing at half its stores, earning grades of C, D, or F on the company’s internal scoring system. Problems include dirty dining areas, sloppy soda stations, and slow lines.
NETWORK NEWS
Candace Cameron Brue announced on Thursday that she will be leaving ABC’s daytime talker, The View. Brue said that the bi-coastal commute to meet her commitments has been “tough on me and hard on my family” and then thanked various members of the cast and crew……CBS This Morning host Gayle King has completed a new contract to stay with the morning news show for another three years. Reports say the contract is worth $5.5 million per year. King, along with Charlie Rose and Norah O’Donnell have consistently grown ratings for the show by offering more hard news than The Today Show on NBC and Good Morning America on ABC……A report in Advertising Age says FOX has 90% of their inventory for Super Bowl LI sold. The article says a person familiar with the situation claims that FOX should average $5 million for a 30-second spot in the game, and according some buyers, the network has 17 units still available. A good deal of “buzz” is being generated by the possibility of a Dallas Cowboys/New England Patriots match-up for the February 5th game since both teams have a large base of fans……The fourth season of The CW’s Reign will kick off Friday, February 10th at 9 PM (ET) and it will be the last for the historical fantasy series. Reign joins the Vampire Diaries in getting cancellation notices from the network……Special musical performances from Alicia Keys, Pentatonix and Blake Shelton will highlight this year’s NBC’s New Year’s Eve with Carson Daly. America’s Got Talent judge Mel B. will co-host with Daly on the annual broadcast……It’s the first development season for Working Title Television and already the company has sold three new projects to the networks. The Man from Primrose Lane about a murder investigation in Ohio has a script commitment from FOX. Triangle, about the mysterious Bermuda Triangle is under development at NBC, while DTLA, set in the resurging community of downtown Los Angeles is working at ABC. Working Title Television is a joint venture between NBCU International Films and Working Title Films……NBC has given a pilot pick up order for a new drama from Jenna Bans (The Family). Good Girls centers on three “good girl” suburban wives and mothers who suddenly find themselves in desperate circumstance and risk everything to take their power back. Good Girls is NBC’s second pilot order for the 2017-18 season. Previously the network gave a commitment to The Baby, a comedy from Seann William Scott. Parks and Recreation’s Amy Poehler is executive producer on the project.
DIRECTV NOW NEEDS BROADCASTERS
AT&T got a lot of publicity for its launch of DirecTV Now as an OTT service with a base price of $35 per month. But then critics started complaining that subscribers had to pay more for add-ons like HBO and that the service lacks a cloud DVR. Just be patient, says analyst Joel Espelien of The Diffusion Group—“New services do not emerge fully formed.” He has some criticisms of DirecTV Now as well, but also sees plusses.
“AT&T clearly got the basic things right. Getting rid of the operator set-top box, the truck-roll installation, the lengthy paper bill, and the linear grid-guide are all major improvements over legacy pay-TV services. DirecTV Now also deserves credit for designing a mobile-first interface that looks good across a range of apps and screens,” the analyst says in praise of the new offering.
No broadband pay-TV service will succeed without a cloud DVR feature, according to Espelien, so look for AT&T to correct that shortcoming. But the analyst says the biggest drawback to DirecTV Now is the lack of local broadcast TV stations in many markets. While some “brave souls” will do a work-around with rabbit ears, he says they work “horribly” and mainly highlight the underlying problem.
“It’s time national broadcasters embraced this idea…and give viewers what they want. And local affiliates should follow suit, posthaste. Exclusion from broadband pay-TV services will be devastating to local broadcasters, as they may be shut out of a key video conduit,” says Espelien.
FIRST ANTI-AD-FRAUD CERTIFICATIONS
The advertising industry’s efforts to fight digital ad fraud have produced the first 16 companies to be “Certified Against Fraud” by the Trustworthy Accountability Group (TAG). They are the initial group pf companies to complete the review process and show that they have met TAG’s anti-fraud standards.
The group includes Amobee; comScore; DoubleVerify; Dstillery; Google; WPP’s GroupM; Horizon Media; Integral Ad Science; Interpublic Group; Moat; Omnicom Media Group; OpenX Technologies, Inc.; ProData Media; Rocket Fuel Inc.; Sovrn; and White Ops, Inc.
“The initial recipients of the TAG ‘Certified Against Fraud’ Seal represent the connective tissue of digital advertising, including the world’s largest publishers, ad agencies, and ad tech providers, and they have helped establish the TAG seal as the gold standard in the digital advertising ecosystem,” said Mike Zaneis, CEO of TAG.
TAG was created by the American Association of Advertising Agencies (4A’s), Association of National Advertisers (ANA), and Interactive Advertising Bureau (IAB).
ABC SALES CHIEF WANG RETIRING
Geri Wang announced plans to retire next March after a 27-year run at ABC. Since 2010 Wang has been President of ABC Sales, leading a team of nearly 300, responsible for advertising sales and integrated marketing across the entire ABC portfolio.
Her career at ABC began in 1990 as a daytime planner, coming from Grey Advertising. Wang rose through the ranks at ABC to VP of primetime sales in 2000 and a decade later to head the entire sales operation.
ACCOUNT ACTIONS
Deutsch, New York, has won the Shock Top beer accountat Anheuser-Busch InBev. Deutsch had previously picked up the big brewer’s Busch family of brands……Academy, Ltd., a premier sports, outdoor and recreation lifestyle retailer, has selected Foote, Cone & Belding (FCB), Chicago, as the company's Agency of Record. The Texas-based chain known as Academy Sports + Outdoors is now expanding nationally……Tribeca Enterprises has selected DDB New York, part of Omnicom Group, as its AOR. Effective immediately, DDB will be responsible for developing creative campaigns for the Tribeca Film Festival, as well as new partnerships with Tribeca Studios. The account had been at JWT……Hearing aid company Miracle-Ear has consolidated its media planning and buying account with Compass Point//McCann, following a review. Previously, the company had used a number of smaller agencies to handle various media-related assignments.
THIS AND THAT
Drug maker AstraZeneca is eliminating 700 jobs across the United States, including at its North America commercial headquarters in Wilmington, DE. The British firm blames a loss of patent exclusivity on key medicines……Mortgage rates nudged higher, rising for a sixth consecutive week, with the benchmark 30-year fixed mortgage rate rising to 4.15%, according to Bankrate.com's weekly national survey.
AVAILS
KCCI, the market-leading Hearst Television CBS affiliate in Des Moines, IA is seeking a media sales professional. As a Marketing Consultant, you’ll be selling the market’s leading television brand. The ideal candidate is self-motivated and thrives in a goal-oriented team environment. Comparable sales experience preferred but not required. If you have a strong desire to take your career to the next level we want to hear from you. CLICK HERE for details or to apply now. EOE.
Do you want to work, live and play in an area rich in culture, beautiful mountains and good folks? Legacy #1 station, WCYB seeks a Local Sales Manager to lead a seasoned and growing sales team for its NBC and CW affiliations in the Bristol VA-TN Tri-Cities Market; also operating WEMT-TV/FOX under a Shared Services Agreement with Esteem Broadcasting. The LSM will cultivate and maintain a positive, upbeat sales environment; and support “The Culture of Excellence” – lead by example. Resume/cover letter to Steve Flint, DOS, . EOE.