Spots N Dots
The Daily News Of TV Sales
May8, 2017
AUTO INSURANCE SHOPPING STAGNATES
WILL TV ADS BE IMPACTED?
Led by two advertisers that believe in hyper-frequency, the auto insurance category has grown into one of the most active of all TV ad categories. Media Monitors airchecks in 61 markets found Berkshire Hathaway’s GEICO to have run more commercials than any other single brand last year, and Progressive Insurance was number eight. Other counts for more markets have found both insurers having run over a half-million spots each in a year. Since both companies became huge advertisers on TV a few years back, each has moved up the charts of insurers based on numbers of policyholders—TV has worked very well for them and creative elements such as the gecko and Flo have become iconic TV advertising symbols. Both companies’ selling proposition has been clear and well-established: lower prices.
The rationale for so much frequency from these two and other auto insurers who need at least some presence on TV to remain competitive has been that the car insurance marketplace is a 12-month, 52-week business with no significant seasonality and policies up for renewal at any time in the year. However the new U.S. Insurance Shopping Study just released by J.D. Power says shopping for car insurance may be changing—it reports that amid a second straight year of stagnant shopping activity, insurance companies have grown increasingly reliant on better customer service, personalized advice, and strong agents to win over their customers. Certainly, price is still very important. but for the second year in a row, there has been a slowdown in shopping activity with premium rates up just 2-3%, customer acquisition rates and new quote volume flat, and the total number of shoppers unchanged from last year.
Additionally, advertising does not translate to great satisfaction in the shopping process. Power’s study of more than 16,000 people who requested a quote from an insurer (out of more than 50,000 customer evaluations) found lightly-advertised Erie Insurance topping the customer shopping satisfaction index (for the fifth consecutive year) with an 879 score on Power’s 1,000-point scale. American Family was runner-up with an 869 score and The Hartford was third at 861. Both most-heavily advertised companies were below the industry average of 842 as GEICO came in with an 839 and Progressive was close to the bottom with an 831 score. Others with significant TV exposure were Liberty Mutual, 849; Nationwide, 847; State Farm, 846; Farmers, 845; Travelers, 844; Esurance, 840; and Allstate, 833.
ADVERTISER NEWS
Gymboree may become the 15th retail bankruptcy so far this year (there were only 18 in all of 2016) with a filing as early as this week. The Wall Street Journal reports the company may close as many as 350 of its 1300 stores, which include the Janie and Jack and Crazy 8 banners……Midwestern cooperative wholesaler Central Grocers has already filed for bankruptcy and will need to sell off the Strack & Van Tilretail chain of 22 stores, which was its biggest customer. Central is owned by independent food retailers that are also its customers……Better news from the supermarket business from Sprouts Farmers Market. Despite what it estimates to be a 3% deflation factor, comps were up 1.1% on a 0.6% increase in store traffic. The chain will expand a 10-store test of delivery through Amazon Prime Now to 20 stores this year with a “robust” rollout hoped for next year……After an expansion spurt, Smart & Final says cannibalization added to deflation and bad weather combined to produce a 2.5% same-store sales drop in its fiscal first quarter. Despite the cannibalization problem the chain will add 19 more stores this year, four of them using the Cash & Carry banner……Natural Grocers is cutting back on expansion plans after a quarter in which same-store sales were down 1.7%, now planning to open 15-17 stores this year instead of the twenty initially projected. On the positive side the VP of advertising says the upcoming TV campaign will be more aggressive and will include competitive elements while “leverag(ing) the equity of our legacy campaign.”……Same-shack sales (yes, that’s what the chain calls it) were down 2.5% for the first quarter at Shake Shack, but the rapidly-expanding chain says most of the locations that have been open at least a year are located in the Northeast and were impacted by weather during the quarter……Potbelly same-store sales were down 3.1% in the first quarter. The average check grew by 3.1%, but traffic dropped about 6%. Commentary from the CEO indicates a possible slowdown in new unit construction with some refranchising possible—current franchisees own just 51 of the chain’s 464 units……Tempur Sealy says excluding last year’s sales at Mattress Firm stores, net North American sales in the first quarter increased 13%. Direct sales were up 130% as web sales more than tripled……Cato Corporation same-store sales for April were down 2%, but that was helped by the shift of Easter into the month. Looking at the March-April period combined, comps were down 13% and the CEO admitted to “merchandise assortment missteps.”
NETWORK NEWS
NBC has given series orders to two dramas from the 2017 pilot season. Rise, from former Friday Night Lights showrunner Jason Katimsand Hamilton producer Jeffery Seller, was an early favorite at NBC. Written by Katims, Rise is inspired by the story of a groundbreaking high school drama teacher chronicled in the book Drama High. The series will star Josh Radnor (How I Met Your Mother), Rosie Perez and Marley Shelton. The second drama to get a series order is For God & Country, from writer Dean Georgaris, described as a heart-pounding journey into the complex world of America’s elite undercover military heroes. The cast includes Anne Heche, Mike Vogel, Sofia Pernas, Tate Ellington, Natacha Karam, Demetrius Grosse, Noah Mills and Hadi Tabbal. For God & Country is one of several military-themed pilots ordered by the broadcast networks this season and the first to be picked up to series.……Meanwhile, the news is not so good for NBC’s Emerald City. NBC has cancelled the Wizard of Oz themed drama after just one season. The series, executive produced by Shaun Cassidy and David Schulner, never caught on with viewers or critics……CBS reported better-than-expected first quarter numbers last week. “Our first-quarter results once again demonstrate the strength of our strategy, which is to diversify our revenue mix as we achieve our long-term financial goals,” CEO Les Moonves said. “Retransmission consent and reverse compensation led the way in Q1, growing 28%. This contributed to a 17% increase in our company’s affiliate and subscription fee revenue, which also benefited from our over-the-top subscription services, CBS All Access and Showtime OTT.” He added that he looks forward to the upfront market “where we’re confident advertisers will once again place great value on the No. 1 television network in an increasingly fragmented media landscape.” CBS-owned TV stations saw operating profits fall 18% to $123 million with revenues down 8.7% to $409 million……Less than 24 hours after expressing an interest in a broadcasting career, former Chicago Bears quarterback Jay Cutler was picked up by Fox Sports. Cutler follows the footsteps of Tony Romoof the Dallas Cowboys, who recently replaced Phil Simms at CBS. Cutler is in line to take over for former football player John Lynch in the broadcast booth. Cutler played 11 seasons, three in Denver and eight in Chicago……Negotiations are still on going, but Modern Family co-creator Steve Levitanprovided a very revealing and hopeful hint about the ABC sitcom’s future. Levitan said that a writer’s room is about to be up and running for a ninth season. Levitan was participating in Modern Family’s panel during an Academy of Television Arts & Sciences event last week.
ACCOUNT ACTIONS
H&R Block is shifting its estimated $80 million broadcast media planning and buying assignment from Omnicom’s OMD to Publicis Media’s Mediavest | Spark, effective immediately. Sibling agency Fallon, also part of Publicis and the client’s creative agency, picked up social media duties from WPP’s VML.
SMB: OPTIMISM NEAR HISTORIC HIGHS
We reported last week on a couple of studies that had shown great optimism among small-business owners and now an even later study done by PNC Financial Services among business owners has reached levels never seen before in the 15-year history of the biannual survey. 86% of respondents said they are optimistic about the near-term outlook on the national economy, up from 71% when the study was last taken in the fall of 2016, and just 56% when the study was done a year ago. Possibly even more important, 89% are optimistic about their local economy, up from 77% last fall. “The hope we noted in the fall survey has for many turned into enthusiasm and is consistent with other indicators of improved confidence,” Gus Faucher, Chief Economist for PNC commented.
THIS AND THAT
We reported recently how men are becoming more important shoppers in the supermarket channel, but now Convenience Store News points out that female shoppers have a growing influence at c-stores. Men still make the majority of c-store trips, but women now account for about a third of the trips into the stores and spend slightly more than men do once inside. Women also are more likely to buy from higher-margin categories like candy, cookies and crackers, while men over-index lower-margin products. The VideoMining C-store Shopper Impact MegaStudyalso found a higher percentage of gasoline buyers are coming into stores, up about 2% in the last two years. “Even a 2-point increase in pump-to-store conversion translates to significantly higher profits,” the CEO of VideoMining said..... Bad news for those who sell ads. The Tesla Model 3 sedan is due to hit the market in about two months, and the company plans an “anti-selling” campaign; No test drives and no advertisng for six to nine months. The car will sell for aobut $35,000 before options and incentives. The Model 3 has a continuous glass roof that starts at the windshield and goes until the rear spoiler. Another unique feature...no grill, since the car doesn’t need to inhale air to burn gasoline.
GOOD NEWS FROM HOUSING SECTOR
As values for homes have risen, properties considered to be “seriously underwater” have dropped by 1.2 million in just a year, and those seen as “equity rich” are up 1.4 million in the same time. The U.S. Home Equity and Underwater Report done by ATTOM Data Solutions found there are still almost 5.5 million homes where the loan amount secured by the property was at least 25% higher than the estimated market value, but a year ago that number was 6.7 million. The toughest hit areas according to a senior VP at ATTOM are several Rust Belt cities, Las Vegas, and central Florida. Lower-priced homes, those valued under $100,000, are frequently underwater, with almost a third of those homes seriously underwater. On the positive side, there are now 13.7 million equity-rich properties where the outstanding loan is 50% or less the estimated value of the property.
SINCLAIR/TRIBUNE...THIS WEEK?
Sinclair is close to a deal to buy Tribune Media, people briefed on the matter said Sunday. Sinclair is rumored to be offering about $44 a share for Tribune, valuing the company at about $3.8 billion.
Sinclair’s bid for Tribune was made possible once the FCC relaxed rules governing ownership of local television stations. But it’s likely Sinclair will have to sell off some stations to comply with the FCC’s rules limiting a company to ownership of TV stations that reach 39% of the country. The combined companies would have a 50% reach. Sinclair currently owns 173 TV stations, Tribune owns 42.
iHEART - REVENUE UP, BUT LOSSES ARE TOO
iHeart’s radio and digital division posted a sixteenth consecutive quarter of year-over-year revenue growth in Q1. iHeartMedia’s revenues increased 3.8%, but the company lost $388.21 million in the quarter, and continues to warn of its ability to “continue as a going concern” for the next 12 months due to balance sheet issues.
AVAILS
WTAE-TV, the Hearst-owned ABC affiliate in Pittsburgh, PA has an immediate opportunity for a General Sales Manager. The GSM directs Sales department strategy, pricing, and personnel for all platforms. The successful candidate will have all the requisite sales and management aptitude including strong leadership skills. CLICK HEREto apply. EOE.
Capitol Broadcasting Company’s Sports Radio Division is seeks an Inside Sales Representative with great drive and self-discipline to generate qualified new business appointments each week for our sports marketing sales team at WCMC-FM in Raleigh, NC. A solid understanding of digital media and sales options required. Knowledge of local and national sports is helpful, but not required. CLICK HEREfor more info or to apply. EOE M/F. All Capitol Broadcasting Company properties are tobacco free. CBC participates in E-Verify.
WMBF-TV, the NBC affiliate in sunny Myrtle Beach, SC, is currently recruiting for a Local Sales Manager to join our team. We’re searching for a dynamic candidate with strong leadership, motivational and sales skills and a proven track record of success. Exceptional skills in recruiting, coaching, and training top performing sellers is a must. Must be a critical thinker with a desire to lead a first-class sales team with creative ideas.CLICK HEREfor more info or to apply. No calls please! EOE-M/F/D/V
WFTS – the ABC affiliate owned by E.W. Scripps in Tampa, FL (Market #11) seeks an Integrated Account Executive. The winning candidate will be required to grow revenue with an existing client list while also cultivating New Business and Digital revenue for the station. Candidate must have excellent presentation skills, verbal and written skills and work collaboratively with our properties. Prior broadcast TV and diverse digital sales experience required. CLICK HEREfor more info or to apply now. EOE.
Sinclair Broadcast Group’s San Antonio television stations (KABB/KMYS/WOAI) are looking for an enthusiastic, and driven New Business Development Sales Manager. We’re looking for someone to lead our local sales department in maximizing all sales opportunities, with an emphasis on new business development and digital sales. Candidates must have at least 5 years broadcast sales experience, with televisions sales and management experience preferred, and at least 5 years’ digital sales experience. CLICK HEREfor more info or to apply today. Equal Opportunity Employer and a Drug Free Workplace!
FOX Carolina, WHNS-TV in Greenville, SC (Market #37) is searching for a Director of Sales. Greenville SC is a thriving city with a vibrant and growing downtown that recently hosted its first NCAA basketball tournament. Fox Carolina has a strong local news presence, strong NFL numbers, quality programming and a commitment to the community. Bachelor’s degree In Marketing or related field, or equivalent training and/ or experience. Six to eight years local television sales required. CLICK HEREfor more info or to apply now. EOE.
Digital Account Executive: KELO in Sioux Falls, SD seeks a new business ALL STAR to build long term relationships with new and existing clients as a trusted digital consultant. Cultivate current and prospective client relationships while identifying opportunities to expand these relationships by responding to client needs. Digital sales or sales related experience preferred, knowledge of Nielsen ratings is a plus. Full benefits package and unlimited income potential! Qualified applicants can APPLY HERE. EOE/M/F/V/D - Background check required.
One of Uber’s self-driving cars crashed in Arizona. Evidently, the car couldn’t stand to hear one more passenger say, “But it’s a dry heat.”–Conan O’Brien
When I tell my kids I’ll do something in a minute, what I’m really saying is, “Please forget.”–FunnyTweeter.com
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SPOTS N DOTS
The Daily News Of TV Sales
May8, 2017
Phone: 888-884-2630