ad giant upgrades 2018 outlook for television · 2018-06-15 · witherspoon’s hello sunshine,...

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www.spotsndots.com Subscriptions: $350 per year. This publication cannot be distributed beyond the office of the actual subscriber. Need us? 888-884-2630 or [email protected] Copyright 2018. The Daily News of TV Sales Friday, June 15, 2018 AD GIANT UPGRADES 2018 OUTLOOK FOR TELEVISION ADVERTISER NEWS Amazon is using its so-called Treasure Trucks to connect with shoppers in person—and expand its presence. The e-commerce giant, Business Insider reports, is hawking things like meat, discounted seafood, Panini presses and more, with items sold in a parking lot and straight from the vehicle. Amazon has also used the trucks to try to bring people into Whole Foods, which it acquired last year. The trucks are now in almost 40 cities in the U.S. and England. So what’s the inspiration for the idea? A spokesperson says it was the ice cream truck—another store on wheels that shows up unexpectedly… CNBC reports that online crafts marketplace Etsy is raising its transaction fee for each sale. Shares soared yesterday on the announcement, and the company raised its full-year guidance to reflect the higher revenue. Etsy says the new rate is 5 percent, up from 3.5 percent. It will kick in starting July 16. Etsy, whose platform connects artisans and crafters with online shoppers, also announced new subscription plans and tools for its independent vendors… Citigroup has downgraded shares of Kohl’s to neutral from buy. It says the retailer has run too far, too fast, and it’s concerned about Kohl’s ability to drive traffic on its own. Kohl’s posted same-store sales and earnings that beat Wall Street’s expectations last month, but its CFO revealed the sheer number of quarterly transactions was relatively flat… Are taglines still relevant? Heineken says no. According to AdAge, Heineken USA’s newest campaign ends the tradition of using a catchy phrase to sell beer, because the brewer believes the practice is obsolete. Remember—this is an industry that gave us “Great Taste, Less Filling” and “This Bud’s for You,” which endure even when they’re not actively used in advertising. Heineken made the decision after conducting consumer research on the relevancy and recall of taglines in today’s media landscape—and finding diminishing returns… Subway appears to be taking a break from breakfast. Bloomberg reports the company is no longer requiring franchisees to serve it, eight years after its introduction. The move is being driven by a worker shortage: Unemployment is at a 17-year low, and restaurants are struggling to find enough employees, especially in the early mornings. In addition, Subway’s breakfast offerings never caught on. Market- research firm Field Agent found 43 percent of Subway’s customers don’t visit for breakfast, and another 19 percent weren’t even aware the chain serves breakfast. Subway’s U.S. store count fell by more than 900 last year… The New York Post says the corporate name of Time Warner is not long for this world. It will be retired in the coming weeks, assuming the big merger with AT&T isn’t delayed during an appeal. The name was formed in 1990 with the merger of Time Inc. and Warner Communications. The Post notes it’s outdated as it is, considering the media company spun out Time Inc. in June of 2014. IMPROVING ECONOMY, ELECTION KEY FACTORS The ad agency conglomerate Dentsu Aegis Network is giving its advertising forecast an upward revision. It expects U.S. advertising spending to increase 3.4 percent this year to $217.3 billion. That’s an improvement over the 3.2 percent growth rate it had predicted in January, reflecting what Dentsu says is a “stronger” U.S. economy. “These figures point to a more positive outlook today than at the beginning of the year and represent a modest but encouraging source of optimism,” Dentsu CEO Jerry Buhlmann said. “The U.S. economy is growing strongly as economic stimulation and tax cuts filter through.” The Winter Olympics brought in around $1.6 billion of advertising, which helped give the first quarter a nice boost. But it’s the 2018 political campaign that Dentsu is focused on. “Local TV is where politicians look to spend,” it says, adding, “It is predicted that more than $2.8 billion will be spent on the upcoming mid-term elections.” Some newly available information helps back up what Dentsu forecasters are predicting. It comes from Kantar Media’s Campaign Media Analysis Groupowned by rival WPP. Kantar reports $132.5 million has been spent on television in just the three dozen gubernatorial contests so far this year (Jan. 1 through June 4). That’s nearly double the $69 million that was spent on governor’s races four years ago. USA Today says the biggest spending totals have been in Illinois and Nevada. Republicans have reportedly outraised Democrats by $33 million, but the GOP is defending 26 of the 36 statehouses. Election Day could also have a big impact on which party controls Congress, and that’s led the Republican super PAC Congressional Leadership Fund to reserve $60 million in advertising time across 33 districts. The vast majority of those dollars—$50 million—will go to local TV buys. The rest will be spent on digital ads. The Washington Post reports the group aims to raise and spend $100 million by the end of the campaign. Beyond politics, Dentsu’s mid-year forecast update offers some insights into larger ad trends. Global television spending is now estimated to increase 1.2 percent this year, according to Dentsu, the parent company of media buying firm Carat. That’s more than twice the half-a-percent rate projected by the agency in January. “TV spend is forecast to move back into growth in 2018,” it says, “remaining a major medium in the mix with 35.5% of overall investment.” Digital ad spending is projected to increase 12.6 percent this year, and Dentsu forecasts it will account for 38 percent of worldwide ad spending and overtake total television spending for the first time this year. But mobile is where the momentum is. Dentsu projects U.S. mobile ad spending will grow 21.2 percent this year, revised up from its 20.2 percent forecast released earlier. And it says 80 percent of mobile (Continued on page 3)

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Page 1: AD GIANT UPGRADES 2018 OUTLOOK FOR TELEVISION · 2018-06-15 · Witherspoon’s Hello Sunshine, Peter Chernin’s ... This individual is a highly skilled hunter who will focus on

www.spotsndots.comSubscriptions: $350 per year.

This publication cannot bedistributed beyond the office

of the actual subscriber. Need us? 888-884-2630 or

[email protected] Copyright 2018.The Daily News of TV Sales Friday, June 15, 2018

AD GIANT UPGRADES 2018 OUTLOOK FOR TELEVISIONADVERTISER NEWS Amazon is using its so-called Treasure Trucks to connect with shoppers in person—and expand its presence. The e-commerce giant, Business Insider reports, is hawking things like meat, discounted seafood, Panini presses and more, with items sold in a parking lot and straight from the vehicle. Amazon has also used the trucks to try to bring people into Whole Foods, which it acquired last year. The trucks are now in almost 40 cities in the U.S. and England. So what’s the inspiration for the idea? A spokesperson

says it was the ice cream truck—another store on wheels that shows up unexpectedly… CNBC reports that online crafts marketplace Etsy is raising its transaction fee for each sale. Shares soared yesterday on the announcement, and the company raised its full-year guidance to reflect the higher revenue. Etsy says the new rate is 5 percent, up from 3.5 percent. It will kick in starting July 16. Etsy, whose platform connects artisans and crafters with online shoppers, also announced new subscription plans and tools

for its independent vendors… Citigroup has downgraded shares of Kohl’s to neutral from buy. It says the retailer has run too far, too fast, and it’s concerned about Kohl’s ability to drive traffic on its own. Kohl’s posted same-store sales and earnings that beat Wall Street’s expectations last month, but its CFO revealed the sheer number of quarterly transactions was relatively flat… Are taglines still relevant? Heineken says no. According to AdAge, Heineken USA’s newest campaign ends the tradition of using a catchy phrase to sell beer, because the brewer believes the practice is obsolete. Remember—this is an industry that gave us “Great Taste, Less Filling” and “This Bud’s for You,” which endure even when they’re not actively used in advertising. Heineken made the decision after conducting consumer research on the relevancy and recall of taglines in today’s media landscape—and finding diminishing returns… Subway appears to be taking a break from breakfast. Bloomberg reports the company is no longer requiring franchisees to serve it, eight years after its introduction. The move is being driven by a worker shortage: Unemployment is at a 17-year low, and restaurants are struggling to find enough employees, especially in the early mornings. In addition, Subway’s breakfast offerings never caught on. Market-research firm Field Agent found 43 percent of Subway’s customers don’t visit for breakfast, and another 19 percent weren’t even aware the chain serves breakfast. Subway’s U.S. store count fell by more than 900 last year… The New York Post says the corporate name of Time Warner is not long for this world. It will be retired in the coming weeks, assuming the big merger with AT&T isn’t delayed during an appeal. The name was formed in 1990 with the merger of Time Inc. and Warner Communications. The Post notes it’s outdated as it is, considering the media company spun out Time Inc. in June of 2014.

IMPROVING ECONOMY, ELECTION KEY FACTORS The ad agency conglomerate Dentsu Aegis Network is giving its advertising forecast an upward revision. It expects U.S. advertising spending to increase 3.4 percent this year to $217.3 billion. That’s an improvement over the 3.2 percent growth rate it had predicted in January, reflecting what Dentsu says is a “stronger” U.S. economy. “These figures point to a more positive outlook today than at the beginning of the year and represent a modest but encouraging source of optimism,” Dentsu CEO Jerry Buhlmann said. “The U.S. economy is growing strongly as economic stimulation and tax cuts filter through.” The Winter Olympics brought in around $1.6 billion of advertising, which helped give the first quarter a nice boost. But it’s the 2018 political campaign that Dentsu is focused on. “Local TV is where politicians look to spend,” it says, adding, “It is predicted that more than $2.8 billion will be spent on the upcoming mid-term elections.” Some newly available information helps back up what Dentsu forecasters are predicting. It comes from Kantar Media’s Campaign Media Analysis Group—owned by rival WPP. Kantar reports $132.5 million has been spent on television in just the three dozen gubernatorial contests so far this year (Jan. 1 through June 4). That’s nearly double the $69 million that was spent on governor’s races four years ago. USA Today says the biggest spending totals have been in Illinois and Nevada. Republicans have reportedly outraised Democrats by $33 million, but the GOP is defending 26 of the 36 statehouses. Election Day could also have a big impact on which party controls Congress, and that’s led the Republican super PAC Congressional Leadership Fund to reserve $60 million in advertising time across 33 districts. The vast majority of those dollars—$50 million—will go to local TV buys. The rest will be spent on digital ads. The Washington Post reports the group aims to raise and spend $100 million by the end of the campaign. Beyond politics, Dentsu’s mid-year forecast update offers some insights into larger ad trends. Global television spending is now estimated to increase 1.2 percent this year, according to Dentsu, the parent company of media buying firm Carat. That’s more than twice the half-a-percent rate projected by the agency in January. “TV spend is forecast to move back into growth in 2018,” it says, “remaining a major medium in the mix with 35.5% of overall investment.” Digital ad spending is projected to increase 12.6 percent this year, and Dentsu forecasts it will account for 38 percent of worldwide ad spending and overtake total television spending for the first time this year. But mobile is where the momentum is. Dentsu projects U.S. mobile ad spending will grow 21.2 percent this year, revised up from its 20.2 percent forecast released earlier. And it says 80 percent of mobile(Continued on page 3)

Page 2: AD GIANT UPGRADES 2018 OUTLOOK FOR TELEVISION · 2018-06-15 · Witherspoon’s Hello Sunshine, Peter Chernin’s ... This individual is a highly skilled hunter who will focus on

PAGE 2 The Daily News of TV Sales @ www.spotsndots.com

NETWORK NEWS The creator, executive producer, and showrunner of the breakout ABC medical drama The Good Doctor, David Shore, has signed a new three-year overall deal with Sony Pictures TV, the studio behind The Good Doctor. The new agreement extends Shore’s tenure at Sony TV to almost a decade. He joined the studio in 2012 with a three-year, eight-figure deal that allowed him to build up his own firm, Shore Z Productions, into a full-fledged company. In addition to developing new projects under the agreement, Shore will continue as the executive producer/showrunner on The Good Doctor. The drama finished its first season as the No. 1 new drama on television. It averaged 16.7 million viewers in the Live +7 data. The Good Doctor is based on a South Korean format, and its star, Freddie Highmore, picked up a Golden Globe nomination for his role as Dr. Shaun Murphy… Ron Cephas Jones, the Emmy-nominated co-star of NBC’s This Is Us, will no longer be a series regular on the popular show. He has joined the star-studded cast of Are You Sleeping, Apple’s upcoming 10-episode thriller series from Reese Witherspoon’s Hello Sunshine, Peter Chernin’s Chernin Entertainment and Endeavor Content. Cephas Jones has been a series regular on This Is Us since the show started portraying Randall’s father William in Season 1, which followed his final months before dying of cancer. Following his character’s death, Cephas Jones had only a handful of flashback appearances during the second season. He will continue to recur on the show as he did this past season… The Fox network was the ratings winner on Wednesday night based on the strength of a two-hour Gordon Ramsay programming block. The 8 PM (ET) version of MasterChef delivered a 1.0 adult 18-49 rating and 3.8 million total viewers. The performance was up in both measures over last week. The series premiere of Gordon Ramsay’s 24 Hours to Hell and Back at 9 PM (ET) opened with a solid 1.1 demo rating and 3.7 million total viewers. The new series was Fox’s most-watched summer debut in more than three years. American Ninja Warrior on NBC dipped in the demo with a 1.1 rating and 5.1 million total viewers. The second edition of the new NBC show Reverie was even with a 0.5 demo rating and 2.4 million total viewers. On the CW, a new episode of The Originals ticked up with a 0.3 demo rating and 0.84 million total viewers. CBS aired mostly repeats except for a new Code Black, which managed a 0.7 demo rating and 6.1 million total viewers. ABC aired only repeats for the night… The Hollywood Reporter has confirmed that a contestant currently appearing on ABC’s The Bachelorette was convicted of indecent assault and battery last month stemming from a 2016 incident in Boston. Lincoln Adim, one of 28 men competing for Becca Kufrin’s affections, was convicted on the charges for groping and assaulting an adult female on a harbor cruise ship, according to the Suffolk County District Attorney’s office. Warner Bros. TV, the show’s producer, responded to the report and denied knowledge of the conviction.

AVAILS WMBF in Myrtle Beach is seeking a Senior Digital Sales Specialist. This individual is a highly skilled hunter who will focus on developing new revenue and new customers by identifying the prospect’s digital marketing needs. The successful candidate will provide inspiring leadership, drive results for clients, and grow revenue within our market. This person must set the pace as a digital seller among the sales team. Qualified applicants, visit Raycom Media Careers to apply. Be prepared to attach resume with cover letter. No phone calls please. EOE-M/F/D/V

WDSU, the NBC market-leading station in New Orleans, is seeking a dynamic Local Sales Manager who is ready to take a growing station to the next level. This important leadership role encompasses local revenue management for our TV station, digital platforms, as well as our multicast station, MeTV New Orleans. Ideal candidate should be driven, goal-oriented, disciplined, customer-focused, and organized, with the ability

to coach and motivate both newer and experienced AE’s to success in multi-platform advertising sales. Click HERE to apply. EOE Looking for a great place to live and to work for an industry leader? WJCL 22, the Hearst owned ABC affiliate in the Savannah-Hilton Head market is looking for a Local Sales Manager. The ideal candidate has 5 years of broadcast sales experience with a track record of success in the areas Business Development, Digital Sales and Transactional business. Prior management experience is a plus, but not a requirement. Click HERE to apply. EOE.

BIG GAINS FOR U.S. RETAIL SALES IN MAY Last month was a good one for U.S. retail sales: They increased more than expected as consumers bought motor vehicles (despite high gas prices) and an array of other items. Excluding automobiles, gasoline, building materials and food services, retail sales increased half a percent in May. Reuters says the latest economic news, combined with recent data on the labor market, manufacturing and trade, suggests the U.S. economy is picking up steam in the second quarter after growth slowed at the start of the year amid a reduction in consumer spending. The Commerce Department said retail sales jumped eight-tenths of a percent—the biggest advance in six months. April’s figure was revised up to show an increase of four-tenths of a percent instead of the initially reported gain of two-tenths of a percent. In May, auto sales rose half a percent after gaining two-tenths of a percent in April. Gains were also seen at building material and clothing stores, as well as online retail sales. But receipts at furniture stores fell 2.4 percent. Sales at restaurants and bars jumped 1.3 percent. Gas prices are up 15.5 percent this year, according to U.S. Energy Information Administration data. Expensive gasoline, if sustained, could pull spending away from other categories.

6/15/2018

Conan O’Brien

After I retire, I want to move to Vermont and confuse

visitors by opening a “Bed OR Breakfast.”

Page 3: AD GIANT UPGRADES 2018 OUTLOOK FOR TELEVISION · 2018-06-15 · Witherspoon’s Hello Sunshine, Peter Chernin’s ... This individual is a highly skilled hunter who will focus on

The Daily News of TV Sales @ www.spotsndots.com PAGE 3

SHORT NBA FINALS STUNTS AD HAUL FOR ABC Although the 2018 NBA Finals ended in a four-game sweep that was less than ideal for ABC and its advertising partners, the ratings weren’t a total letdown. AdAge says that according to Nielsen live-same-day data, the Golden State Warriors’ decisive victory over the Cleveland Cavaliers averaged 17.6 million viewers and a 10.0 household rating. Those numbers were down 14 percent and 12 percent, respectively, versus last season’s five-game series. The quick 2018 series forced ABC to leave as much as $150 million in ad sales revenue on the table. That calculation comes from preliminary Standard Media Index estimates, which place the average cost of a 30-second ad in the first three games of the 2018 Finals at $634,627 per unit. According to iSpot.tv, the single biggest spender in the Finals was Universal Pictures (Jurassic World: Fallen Kingdom, Skyscraper, The First Purge), with movies representing the top-spending category at $21.6 million. Automotive was an estimated $18 million, with fast-food restaurants contributing $10.7 million. Meanwhile: ESPN says the 2018 Finals gave ESPN Deportes’ Spanish-language telecast its most-watched Finals in the network’s history. Its viewership was up 12 percent to 162,000 impressions, the most since the network began airing the Finals in 2013.

D.C. HOCKEY FANS CHOSE LOCAL BROADCAST TV A new survey indicates Washington, D.C., hockey fans are overwhelmingly devoted to local broadcast TV—at least when it comes to coverage of the Stanley Cup-winning Washington Capitals. A Stanley Cup Celebration Coverage survey, conducted by Research Now and released by TVB, showed fans went local for coverage of (and information on) their team’s celebration events, as well as plans to view the victory parade. The Capitals’ Game 5 clincher delivered a 25.2 household rating in Washington versus a national household rating of 3.9. An expanded news telecast from the NBC affiliate airing the game delivered an average household rating of 11.4 and a peak of 16.0, with other local networks also experiencing ratings upticks. Among the survey’s key findings: 84 percent of respondents used local broadcast TV news for information on the victory celebration, staying for an average of two hours and 19 minutes; and more than twice as many people relied on local TV information on the victory celebration that they did on national broadcast and cable news. When asked for their top reason for watching local television news during the celebration, 62 percent said they wanted “local Washington, D.C. news and insights.” This year’s Stanley Cup Finals featured the Capitals against the expansion Vegas Golden Knights. The Capitals, until last week, had never won a Stanley Cup since entering the NHL in 1974. The pairing guaranteed a first-time champion and sparked intense local community interest.

FCC RULE CHANGE MAY ASSIST SINCLAIR Bloomberg says the FCC’s chairman is reportedly planning a vote next month regarding limits to how many TV stations a company can own. Ajit Pai has said the rules are too restrictive, which could factor into Sinclair Broadcast Group’s planned purchase of Tribune Media. Pai is looking to schedule a vote on July 12th that would modify rules capping broadcasters’ reach at 39 percent of the national audience, Bloomberg reported, citing two people

briefed on the plan. A vote could pre-empt a decision expected from the U.S. Court of Appeals for the D.C. Circuit in Washington, which is considering a challenge to part of the existing rules. It’s a case that could leave Sinclair over the current ownership cap if it’s allowed to buy Tribune. Sinclair’s proposal to purchase Tribune’s 42 stations would leave it with more than 200 and grow its presence across the U.S.

IMPROVING ECONOMY, ELECTION KEY FACTORS (Continued from page 1) dollars will go toward in-app advertising. “Digital remains the dominant growth area with 25 percent of global advertising spend expected to be delivered through mobile for the first time,” Buhlmann said. Mobile devices are steadily becoming consumers’ primary point of access to all digital services and content, with more than half (52 percent) of all worldwide online traffic generated through mobile phones, according to Statista. And that growth of usage, Dentsu says, is largely driven by the widespread availability of high-quality digital video. “Mobile video consumption is exploding among all age groups and content categories,” its update says. With nearly half of the year now over, Dentsu is also sticking a pin in 2018 with its first projection for 2019. The agency is forecasting that U.S. ad spending will grow 3.1 percent next year.

6/15/2018

Jim Gaffigan

It’s hard to do anything in a hammock. It’s like a giant net

for catching lazy people.

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