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sales@spotsndots.com Copyright 2020.The Daily News of TV Sales Wednesday, June 3, 2020

SALESFUEL: BROADCAST, CABLE SEE DAYLIGHT SalesFuel’s latest State of Media Sales study finds that among print, digital and television ad sales executives, cable and broadcast TV sales managers are the most hopeful when it comes to ad revenue in 2020. The sales-enablement consultant found that broadcast and cable sales managers are the most optimistic about possibly exiting the negative financial impact of the COVID-19 pandemic in the next 30 to 60 days. “While broadcast TV reps have their own challenges, station revenue will be buoyed by political advertising in the second half,” C. Lee Smith, SalesFuel’s CEO, tells Spots n Dots. “Grocery will remain strong. And they are more optimistic that revenue will rebound from local small businesses — especially those that provide services for home repair/improvement.” Cable ad sales executives are particularly optimistic about the market for the health care vertical for the rest of 2020. “This category has been artificially suppressed due to concerns about PPE,” Smith says. “Elective surgeries, dental work, vision exams, even routine doctor visits had been delayed by state orders. Barring a second wave of COVID-19, this should be one of the categories to rebound the fastest and strongest.” In fact, the pandemic resulted in larger audiences for local broadcast news, especially in one of the most desirable audience segments. “Keep in mind this year’s survey was taken during the peak of the coronavirus outbreak in April 2020,” Smith says. “The historic and rapidly changing events resulted in larger audiences for local broadcast news – especially among P25-54.” What sellers across categories agree on is that there’s an overwhelming lack of qualified sellers. This resulted in an overall 45% of media sales managers concerned about a lack of general sales talent or competency. But 58% of digital managers are dissatisfied with their sales teams. “What this shows us is coaching amid coronavirus needs to be greatly stepped up to retain talent and any new hires,” he said. “You simply cannot afford to get those wrong given the conditions.” Smith has a clear vision for sales managers who are struggling, especially millennials, 69% of whom have trouble motivating team members, compared to 57% of all sales managers. Smith lays out the three elements for sales talent to increase revenue leading to job satisfaction and success:

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STUDY: SALES MANAGERS OPTIMISTIC POST-PANDEMICADVERTISER NEWS Nordstrom has not made many investments in e-com-merce for its off-price Nordstrom Rack banner, but that changed during the pandemic that shuttered its brick-and-mortar stores. The retailer beefed up its Rack e-commerce offerings in April when it started fulfilling orders from its stores, and those efforts are expected to grow as U.S. con-sumers continue to do more shopping online in the coming months... Lowe’s has created a virtual tool called Lowe’s for Pros JobSight that lets contractors hold digital con-sultations with consumers wary of allowing strangers into their homes during the pandemic. Contractors connect via video chat with homeowners, get a digital view of the prob-lem, tell the homeowners which parts to order and talk them through repairs… Dick’s Sporting Goods yesterday re-ported a decline in same-store sales of almost 30% for Q1, when stores across the U.S. were shut during the corona-virus crisis. The retailer said e-commerce sales, however, surged 210% since March 18, when its stores were closed,

through the end of Q1. It said online sales were up 110% for the entire quarter as peo-ple stuck at home stocked up on weights, workout clothes and other fitness gear to

keep them busy. It also said it got a boost from its curbside pickup service… Stitch Fix says it will lay off 1,400 stylists in California and hire stylists in other parts of the U.S. Ac-cording to the company, these decisions aren’t related to the COVID-19 pandemic. The layoffs represent about 18% of the company’s total staff of 8,000 people in the U.S. and UK, including 5,100 stylists. The company will hire 2,000 stylists in other areas of the U.S., including Austin, Texas; Dallas; Pittsburgh; Cleveland; and Minneapolis throughout the remainder of this year and into 2021… Deutsche Bank raised “concerns” last week that Neiman Marcus breached the terms of its asset-based credit line as it seeks a financ-ing package to help it reorganize in bankruptcy. According to the bank, which is an administrative agent on the retail-er’s ABL, an initial budget tied to Neiman’s bankruptcy loan (known as “debtor-in-possession” financing) “contained

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

OTT/CTV PROGRAMMATIC ADS SPIKE 40% After an initial decline in March when COVID-19 disruption began, OTT/connected TV advertising transactions from automated ad platforms rose 40% from April 5 through May 16, according to Pixalate. There was a 14% decline in those impressions in early March, according to the global ad fraud research/marketing company, whose findings were reported by Television News Daily. Some of the big-name CTV app gainers, in terms of the number of programmatic ad impressions during this period

on the Roku Store, were The CW (129%), Fox News Channel (103%), Hulu (44%), ABC (31%) and Sling TV (30%). In terms of specific set-top-box/platform devices, Vizio TV sets grew 108% in programmatic ad impressions from April 5 through May 16, while Insignia TV devices were up 74%, Roku posted a 44% increase, and Apple devices were up 40%. LG added 39%, while Microsoft was

30% higher, Chromecast was up 22%, Samsung was 21% higher, and Amazon was up 12%.

APPAREL SALES HIT AS CONSUMERS CUT BACK Clothing and apparel retailers will see steep declines in 2020 as spending on discretionary items comes to a near halt amid the ongoing pandemic. eMarketer forecasts a drop of nearly 22% in 2020 for total sales of apparel and accessories, which equates to a year-over-year loss of over $100 billion. On the surface, the decline in apparel sales makes sense. Many clothing and department stores temporarily closed their locations to adhere to social distancing guidelines. E-commerce retailers like Amazon prioritized essential goods in March, leaving voids in inventories for several product categories. However, eMarketer says a look into the apparel and accessories sector reveals the situation is more complex. For one, over the course of the past few months, consumer shopping priorities have drastically shifted away from discretionary purchases and more toward groceries and other household essentials. During March, when concerns of the virus quickly escalated, shopping for clothes took a back seat. Data from the U.S. Department of Commerce shows that spending at clothing retailers was down 51.3% year over year in March. And in April, the declines were even steeper — clothing retailers saw their sales plummet by 89.3%. Another aspect of apparel spending is that people buy new clothes for special occasions, including weddings and vacations. With many of these events either cancelled or postponed, attire sales are completely lost. While there might be some pent-up demand when retailers start to open up again, many of the lost sales won’t be recovered this year. In fact, eMarketer doesn’t predict apparel sales will return to pre-pandemic levels until the end of 2022 — more than two years after the start of the crisis. At that time, sales will reach an estimated $473.42 billion. Digital sales will also take a hit. Online clothing and accessories sales will rise just 8.6% in 2020, a significant deceleration from last year’s growth of 15.9%.

THE AUTO INDUSTRY’S INCENTIVES ARE EASING There could be light at the end of the proverbial tunnel for the U.S. auto industry. Cox Automotive says automotive retail is seeing a slow improvement, thanks to pent-up demand and the prevailing belief that amid a pandemic it’s crucial to own a vehicle. The recently completed Memorial Day weekend was a mixed bag, Cox says, for both dealers and consumers. On the plus side, dealers’ willingness to adopt online sales infrastructure has made it possible for consumers to shop — and configure price and payment terms — before even getting to a dealership. Some even took home delivery of a new set of wheels. On the negative side, inventory was lacking — and sales volumes were kept relatively low by a reduction in rebates and financial incentives. Incentives were in full force in late March when inventory levels were plentiful. That resulted in a slow but certain rise in sales through April and May. But as sales rise, inventory and incentive volume fall. “Incentives for new vehicles are a direct reflection of inventory – fewer vehicles available means fewer offers needed to stimulate demand,” Cox explains. “A quick look at the volume of new-vehicle incentives offers in April and May this year show a reversal of the trend from the last two years, which saw an uptick in incentive volume.”

NETWORK NEWS NBC’s Hollywood Game Night, hosted by Jane Lynch, will return on Sunday, June 7 at 7 PM (ET) for the first of five new episodes. In the series, two contestants take a break from their everyday lives to join a lively night of frivolity and celebration as they compete in two teams alongside some of their favorite celebrities for the chance to win up to $25,000... The new lead of the CW’s Batwoman will not be Kate Kane. The show has opted to go with a new character in the title role following the exit of star Ruby Rose, sources confirm to Deadline. The show was expected to go for a new identity of Batwoman.

STUDY: SALES MANAGERS FEELING OPTIMISTIC(Continued from Page 1)empathy, agility and positivity, with empathy the first step. “Over-communicate and be as transparent as possible,” Smith advises. “Backchannel chatter is more prevalent when there is fear. False narratives are spread when there is a vacuum of trustworthy information.” Agility is next. “As important as empathy is, agility is the most important thing that will determine success in the months ahead,” he said. “Prioritize innovation and show your team you are willing to make changes to respond to the changes in the marketplace. Create more new ways for them to make money – a chief concern of TV reps. Be sure to recognize and reward their good ideas for helping your company (and your advertisers) survive and thrive post-lockdown,” said Smith. And finally, positivity. “When a team leader is calm and positive, your team will be also,” Smith says. “Especially during times like these, sales managers need to be mindful of modeling the behavior they want to see from their team. Don’t fake it, believe it.”

6/3/2020

Stephen Colbert

Home is where the heart is. Also

everything else for the foreseeable future.

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

DONE DEAL The E.W. Scripps Company has named Tregg White vice president and general manager for KGUN and KWBA, Scripps’ ABC and CW affiliates in Tucson, Ariz. His role is effective June 29. White has more than 20 years of experience in news, sales and station management. Most recently, he served as GM of KGWN, KSTF and KNEP stations in Cheyenne, Wyo. White, who launched his career as a reporter and weekend anchor in North Platte, Neb., also previously served as station

manager at Northern Colorado 5 in Fort Collins, Colo., news director at KGWN in Cheyenne, and executive producer at KOLN in Lincoln, Neb.

ADVERTISER NEWS(Continued from Page 1)material errors undermining key assump-tions” that could impede the retailer’s ability to repay its loan. Attorneys for Nei-man say no breach has occurred... Build-

A-Bear Workshop lost its growing momentum in Q1 as it closed its stores, famous for their high-touch and interactive environments, early on in response to the COVID-19 pan-demic. In preliminary results for the quarter ended May 13, the retailer reported a loss of $21.2 million after net income of $1.2 million in the year-ago period. Revenue plunged some 45% to $46.6 million, from $84.4 million last year. The re-tailer said its e-commerce continues to gain momentum, with growth rates increasing to triple-digit levels... Cairn Energy Research Advisors predicts that sales of electric vehicles around the world will rise 36% in 2021, setting a record of 3 million vehicles sold. The report also predicts that Europe and China will be the hottest market for EVs... Food Lion now enables customers to use digital coupons and redeem Shop & Earn MVP rewards when ordering online for store pickup or home delivery. The new services give Food Lion custom-ers more ways to save through its online grocery services, the Salisbury, N.C.-based chain says. Customers see their accumulated Shop & Earn rewards on the checkout screen, as well as the “clipped” digital coupons applied to their order.

6/3/2020

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VISA SEES CONSUMER SPENDING PICKUP IN MAY Visa’s total U.S. payments volume fell at a much slower pace in May from the previous month, indicating that consumer spending was picking up as the government starts to ease coronavirus-induced lockdowns, CNBC reports. U.S. payments volume in May dropped to 5%, compared with an 18% fall in April. Quarter-to-date, Visa posted an 11% drop in payments volume, the company said in a filing earlier this week. Cross-border volumes, excluding intra-Europe transactions, that drive its international transaction revenue, tumbled 45% in May, while global processed transactions fell 12%. Visa said in aggregate, recovery in international markets in which it processes the majority of transactions lagged the U.S. in May. Travel-related cross-border volumes declined 78% last month, while cross-border e-commerce continued to grow strongly and was up 18% in May, the company added.

VERITONE: TELEVISION IS CHANGING Television is changing. As technology advances, many TV organizations are looking to work smarter, set themselves apart and generate new revenue streams. Artificial intelligence (AI) has emerged as a way to do all three — but are organizations fully taking advantage of it? Veritone partnered with Future Media & Entertainment Group to uncover television industry perceptions and experiences around AI. At a time when organizations are finding new ways to work and searching for efficiencies, we set out to gauge the role AI plays in this process. This report examines various aspects of the TV industry’s adoption of artificial intelligence, including:

● How many organizations currently use AI● Factors promoting and hindering the growth of AI● Results of AI, including comparisons by company size● Implementation successes and challenges

Access the report to get a complete overview on where AI stands among TV organizations, along with a breakdown of key findings and insights on the technology’s path forward. CTA: Get Industry Report. The preceding is sponsored content from Veritone.

ATLANTA FED SEES GDP STICKER SHOCK IN Q2 Economic activity in the second quarter has been cut by more than half, according to a tracker employed by the Atlanta Federal Reserve. The GDPNow outlook is now showing a 52.8% tumble, following data earlier this week that U.S. manufacturing remains firmly in decline and will weigh on investment and consumption. That data from the Institute for Supply Management showed just 43.1% of firms seeing expansion in May. Extrapolating from that data, the Atlanta Fed anticipates personal consumption expenditures, which make up 68% of the nation’s GDP, to fall 58.1% in the April-to-June period. Gross private domestic investment, which accounts for 17% of GDP, is now projected to slide 62.6%.