The Daily News of TV Sales
Tuesday, April 25, 2017
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GOOGLE INTO PROGRAMMATIC TV AD SALES PARTNERS WITH WIDEORBIT, CLYPD
“Manage TV and digital video campaigns in a single platform with DoubleClick Bid Manager” is the sales pitch from Google as the digital ad giant adds linear TV to its programmatic sales platform. The announcement posted by Rany Ng, Director, Product Management, says Google is integrating with WideOrbit for inventory from local TV stations and with clypd for national broadcast and cable network inventory. In addition, for the first time the company is making addressable TV inventory available through the programmatic platform from Google Fiber. “With their inventory now available through DoubleClick Bid Manager, television networks and station owners get access to new types of buyers, such as advanced TV buying groups in agencies, digital-first advertisers, and even global advertisers,” said Ng. “Many of these buyers already use DoubleClick, but until now, have had limited access to U.S. TV audiences,” she added. Ad Age noted that Google made a previous attempt to sell linear TV inventory with Google TV Ads, but abandoned the effort in 2012 after it failed to take off. Google is expected to face some industry resistance, since it has been aggressively going after TV budgets for advertising on YouTube. Still, we think Google could be a “frenemy” for stations and networks if there is money to be made on its programmatic platform—and if it is successful in competing with multiple companies already into the market. Programmatic sales are a tiny, but growing part of total TV ad revenues. eMarketer predicts that it will account for $4.4 billion, or about 6% of all TV ad revenues, in 2018. SMITH WELCOMES CHANGE AT NAB SHOW With the incentive auction just completed and Next Generation Television on the launching pad, NAB President and CEO Gordon Smith welcomed change—calling it both “unsettling and exciting”—in his annual address to the NAB Show. He noted change both in the way consumers access content and the way broadcasters are delivering it. “But there are some things technology will never change: Listeners and viewers will always want that local connection that broadcasters provide—with the weatherman who tells them if a storm is approaching, or with their favorite DJ who warns them of the traffic building up ahead,” Smith said. New platforms are making broadcast content available to consumers in new ways. But Smith insisted that the one-to-many architecture of television “is the envy of other media platforms.” www.SpotsnDots.com
ADVERTISER NEWS
A tale of two toymakers: Mattel first quarter sales were down 23% in North America, with retailers apparently holding back on placing new orders as they cleared inventory left over from the holiday season. One small bright spot came from improved direct sales to consumers for the Barbie, Fisher-Price and Hot Wheels lines……But better news at Hasbro: U.S. revenue was up 2% as strength on gaming and emerging brands offset a decline in what the company calls franchise and partner brands. The CEO saw “strong consumer takeaway at retail, both compared to a robust first quarter last year and with a shift of Easter into this year’s second quarter”……99 Cents Only stores has a strong 6.4% comp stores sales gain in its fourth fiscal quarter with average ticket up 4.4% and customer traffic up 1.9%. For the full fiscal year comps were up 2.1%. The company lost $118.2 million for the fiscal year, but the amount was less than half the loss in the prior fiscal year, which had been negative $248 million……The Fresh Market is closing five stores to “allow the company to focus on the success, service and growth of its existing portfolio of stores.” None of the closings will be in markets where there will be no remaining Fresh Markets locations, and the chain is opening a few stores in other markets…… There are a lot of burger chains to choose from, but Five Guys Burgers and Fries emerged on top on the 2017 Harris Poll EquiTrend study, beating out West Coast regional favorite In-N-Out Burger. Other chains above the industry average were Shake Shack, Wendy’s, Culver’s, Whataburger, McDonald’s, Sonic, Smashburger and Steak ‘n Shake, but Burger King, Carl’s Jr., Checkers/ Rally’s, DQ Grill & Chill, Hardee’s, Jack in the Box and White Castle all fell below the category average. Among chicken restaurant brands, Chick-fil-A was on top, with Zaxby’s, El Pollo Loco and Popeyes Louisiana Kitchen all ahead of the category average and Bojangles’, Boston Market, Church’s Chicken and KFC below the category average……Automotive News reports Buick dealers will receive the first vehicles from the upscale Avenir (the name comes from French for “future”) sub-brand in September starting with the redesigned 2018 Enclave crossover, and then spreading throughout the Buick lineup based on size and price. General Motors is hoping the more expensive extra features of the sub-brand will replicate the success of the Denali sub-brand it has seen grow business for the GMC division. 29% of GMC sales last month were Denalis, and those average transaction prices were higher than Audi and Lexus. PAGE 1
NETWORK NEWS
AVAILS
Megyn Kelly and NBC are expected to launch a news WDSU, Hearst owned NBC affiliate in New Orleans, Sunday newsmagazine program in June. The new program LA, has an opening for an experienced, highly motivated, is expected to feature Kelly as the lead of a group of dynamic and driven Account Executive. The AE will be reporters, and will be supervised by two veteran NBC News responsible for selling WDSU TV, MeTV, WDSU.com and producers from the network’s long running newsmagazine Mobile, and our specialty apps such as Parade Tracker Dateline. David Corvo and Liz Cole have been behind and Transit Tracker. New business development is our #1 the popular program since 2011. Kate Snow, who is the Priority. Must be able to thrive in a fast-paced, competitive, Sunday Night anchor for NBC Nightly News, and who multi-media environment. CLICK HERE for more info or to recently stepped down from anchoring an hour on MSNBC, apply now. EOE. is expected to contribute to Kelly’s new program. Meanwhile, KOHD ABC / KBNZ CBS in Central Oregon are Kelly’s daytime show will be presented searching for a Local Sales Manager. as part of The Today Show brand and The LSM is responsible for developing, An archaeologist is claiming is expected to debut in September. A leading, and managing a team of he’s discovered an amazing title for the show is still being decided account executives (AEs) with the as well as whether it will air in the 9 AM objective of meeting and exceeding the lost city in Kansas. Then he (ET) or the 10 AM (ET) time slot. NBC team’s local and regional commercial realized he just got drunk and News did not make executives available revenue targets for Zolo Media. watched ‘The Wizard of Oz.’ for comment……ABC has picked a May Bachelor’s degree OR 4+ years premiere date for its new adaptation of professional work experience, and the classic movie, Dirty Dancing. The 5+ years’ experience selling media Conan O'Brien three-hour filmed musical will feature an advertising 2 + years’ team lead and/ all-star cast including Abigail Breslin, or leadership experience required. Debra Messing, Bruce Greenwood, Nicole Scherzinger, CLICK HERE for more info or to apply now. EOE. Sarah Hyland, Tony Roberts, Katey Sagal and Billy WNCN, CBS North Carolina, in the growing Raleigh Dee Williams. They will join rising stars Colt Pratte and J. market has an immediate opening for a Traffic Coordinator Quinton Johnson for a fresh take on the movie revolving to support the sales department around the events in a Catskills summer resort. ABC’s Dirty with inventory management and Dancing will debut on the network Wednesday, May 24th at maximization. The coordinator 8 PM (ET)……Variety is reporting that ABC is now in the fast works with our central traffic hub lane when it comes to getting affiliate stations on board with double checking the dub list, emerging digital MVPDs. The network has enlisted more looking for missing copy and going over the log once released than 160 of its 200 affiliates to join the ABC Clearinghouse to make sure there are no issues. A minimum of 2-3 years initiative introduced last year at the NAB convention in Las of experience working in a TV station traffic department Vegas. The network offered the affiliates the chance to opt- producing and editing logs required. CLICK HERE in to a uniform carriage deal template negotiated by ABC to apply. EOE M/F/V/D Background check required. executives to make sure the network has a robust presence on the emerging platforms. ABC said that more and two- SUNDAY NIELSEN RATINGS - LIVE + SAME DAY thirds of its affiliates, plus the eight ABC O&Os, will be carried on DirecTV Now, Sony PlayStation Vue, YouTube TV and CenturyLink. More deals are pending with the soonto-be-unveiled service from Hulu and other new ventures. Amazon is pursuing a skinny-bundle streaming channel package that would include local broadcast affiliates of the Big Four networks. CBS has most of its affiliates on board as partners in its CBS All Access SVOD service and is looking to take similar steps with outside distributors. FOX is believed to be moving in the same direction. MORTGAGE RATES COME DOWN AGAIN The housing market is already strong, a great sign for several important retail segments, and as we enter the spring home-buying season there’s additional good news in that mortgage rates have dropped below 4% for the first time since last November. Mortgage company Freddie Mac says the average rate on a 30-year fixed mortgage was 3.97% for the week ended on 4/20, down from 4.08% the week before and from 4.3% last month. For most of last year, rates were just a bit above 3.5% on 3-year fixed mortgages, but mortgage rates moved upwards after the elections in November.
4/25/2017 The Daily News of TV Sales @ www.spotsndots.com
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DEALERS WARNED: NO ABOVE STICKER SALES MOM’S BIG DAY TO HIT RECORD SPENDING
Apparently there’s a sales trainer in the automotive Consumers say they will spend more than ever business that is teaching a sales tactic leading to salespeople on Mother’s Day this year as they shower moms with trying to sell vehicles above sticker price, in effect getting a everything from jewelry to special outings at favorite customer to pay an additional amount as a “tip” for excellent restaurants, according to the National Retail Federation’s service or getting what the customer perceives to be an (NRF) annual survey conducted by Prosper Insights & excellent deal. The sales trainer claims the tactic is legal as Analytics. Mother’s Day shoppers are expected to spend long as the additional amount is disclosed to the customer, an average of $186.39 for the holiday, up from last year’s and the customer agrees to it. $172.22. With 85% of consumers surveyed celebrating the But the National Automobile Dealers Association holiday, total spending is expected to reach $23.6 billion. (NADA) is warning its members about this idea—an article That’s the highest number in the survey’s 14-year history, on the NADA website written by a law topping last year’s previous record of firm tells dealers if the tactic sounds $21.4 billion. The nation’s first drivetoo good to be true—it probably is, in According to the survey, consumers through marijuana that most states have laws referred to plan to spend $5 billion on jewelry dispensary is opening in as the “ad price rule” that requires them (purchased by 36% of shoppers), $4.2 Colorado. Also, down the to sell at or below the advertised price. billion on special outings such as dinner street will be the world’s Even if a dealership is not in a state or brunch (56%), $2.6 billion on flowers most successful DUI with those laws, there’s been plenty of (69%), $2.5 billion on gift cards (45%), checkpoint. attention to dealership sales practices $2.1 billion on clothing (37%), $2 billion
from the Federal Trade Commission, on consumer electronics (15%) and James Corden Department of Justice and Consumer $1.9 billion on personal services such Financial Protection Bureau. as a spa day (24%). The article on the NADA site also discourages trying The overall increase is expected to be driven largely to mark up aftermarket sales at variable prices—the CFPB by spending on jewelry, which is up 19%, and personal has been especially active in policing “payment packing,” services, up 15%. quoting a price or monthly payment to a customer that “Gifts of experience” are especially popular with includes products or services not requested. It specifically younger consumers, with nearly half under age 35 planning warns dealerships about the possibility of variances in to give a gift such as tickets to a concert. For all potential average prices to different ethnic groups. recipients of Mother’s Day gifts, 28% want to receive such a gift, compared with 24% last year. ACCOUNT ACTIONS When searching for that perfect gift, the survey found Accenture named UM, an agency of IPG Mediabrands, that 35% of consumers will head to department stores and as its global media agency, replacing GroupM’s MEC…… 31% will shop at specialty stores such as florists, jewelers Supermoon, Santa Monica, CA, has been named AOR or electronics stores, while 24% plan to shop at a local for startup AutoGravity, which is a financial tech company small business. Meanwhile, 30% will shop online, up from with a smartphone app to connect car buyers with lenders 27% last year. before they even visit the showroom. TV spots will run first in California, and then go nationwide. WSJ: SOME SKIPPING NEWFRONTS The NewFronts were created in 2012 as the digital THIS AND THAT media counter to the traditional TV Upfronts, but the Wall A new study from Parks Associates finds that 32% Street Journal reports that some of the biggest digital names of free OTT trials will result in a paid subscription, noting are taking a pass on the NewFronts this year. It cites AOL, that services like Hulu and Netflix often offer a period of Yahoo, BuzzFeed and Fullscreen as among those who free service with the aim to convert as many as possible have pulled out or cut back considerably on their NewFronts of free-trialers into paying customers. Parks senior analyst efforts. The article says some digital media executives have Glenn Hower says “There is a potential for free trial abuse, been questioning whether the NewFronts have lived up to but only about 1% are ‘serial trialers’ who abuse free trials their original promise of securing ad commitments—and to avoid paying for services. Most consumers use trials ideally getting advertisers to shift budgets from television. for their intended purpose of trying out a service before “What clients are looking for is scale,” the WSJ quotes deciding whether or not to continue as a paid subscriber.” It’s Dentsu Aegis Network president of product and innovation estimated over 25% of U.S. broadband households trialed Doug Ray as saying. And the agency exec notes that there at least one OTT service in the last six months. Hower also are very few digital video platforms that can deliver premium reports that average monthly spending on subscription OTT video content at scale. has increased to $7.95 per U.S. broadband household last The Interactive Advertising Bureau (IAB), which year, but says that doesn’t leave much money for “niche organizes the NewFronts, is predicting record attendance OTT services” who should not expect to expand beyond their this year. And there are new media companies participating particular audience niche……Tesla says it will double its for the first time, such as BBC and Little Things. charging network this year as it prepares for the introduction The NewFronts aren’t going away, but the bloom is of its first mass-market electric vehicle. The $35,000 Model off the rose. Unlike network television, which has limited 3 is due out late this year and Tesla is hoping to produce a inventory to be snapped up, there’s no urgency for buyers half million EVs across all models in 2018. when it comes to digital video ads.
4/25/2017 The Daily News of TV Sales @ www.spotsndots.com
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