Spots N Dots
The Daily News Of TV Sales
March1, 2017
SMBs INCREASING AD BUDGETS THIS YEAR
60% PLAN TO SPEND MORE TO PROMOTE
New findings from BIA/Kelsey’s proprietary research survey, Local Commerce Monitor, reveal that more than 60% of small and medium-sized businesses (SMBs) plan to increase their advertising and marketing spending in 2017. The survey measures where these businesses are spending their advertising and promotional budgets, and how their media usage and spending habits are evolving. To qualify, a business must have 1-99 employees and the answers to the survey must come from the primary advertising decision maker at each business.
The survey breaks down the SMBs into Plus Spenders (those that spend at least $25,000 a year) and Core Spenders (SMB’s that spend less than $25,000 per year). The 20th wave of the LCM was conducted in the third quarter of 2016. The businesses included in the survey come from several different verticals, including auto dealers, home services, furniture stores, and spa and salons, to name a few. According to Rick Ducey, Ph.D, managing director of BIA/Kelsey, the average annual budget of the Plus Spenders is $85,000.
The research reveals that more than 60% of the Plus Spender businesses surveyed intend to increase their advertising and marketing spending in 2017. The group also intends to add new media platforms to their current mix. Plus Spenders are using 20.8 different media and platforms, which include a number of new online categories BIA/Kelsey is tracking for the first time.
Information from the survey was outlined by Celine Matthiessen, VP of analysis and insights for BIA/Kelsey. She said “SMBs are benefiting from the lower cost of digital media, as well as the opportunity to do more of the implementation themselves. The key takeaway for businesses pursuing this segment of SMBs is that they are investing the savings back in to their advertising and plans. This could potentially create more opportunity for new types of digital services in areas like mobile and social, as well as ensure spending on more reliable traditional media advertising.” Matthiessen went on to say “Considering the large number of media use, Plus Spender SMBs will continue to spend on traditional media, particularly clients like auto dealers and furniture stores.”
The Plus Spender’s top-10 media used for advertising and promotion are broken out in order of usage. Direct mail (66.3%), Internet Yellow Pages (61.8%), Facebook (61.5%), website video (54.8%), community sponsorships (54.8%), Facebook ads (54%), Email (53.8%), giveaways (53.5%), cable (51.3%), and magazines (48.3%). The survey shows that 39% of businesses in the Plus Spending category prefer the Do-It-Yourself method of advertising services, while 37% prefer Do-It-With/For Me solutions. Survey respondents have specific ROI expectations as well. 53% of those surveyed expect ROI from Email investments, 51.5% from website traffic/clicks and 50.5% expect ROI from phone calls.
ADVERTISER NEWS
Target didn’t announce any store closures in its quarterly report but it did offer a downbeat outlook after same-store sales were down 1.5%. CEO Brian Cornell said the chain will “accelerate our investments in a smart network of physical and digital assets” and “invest in lower gross margins to ensure we are clearly and competitively priced every day”...... Although J.C. Penney announced store closures last week, more of the remaining stores will be taking on appliance sales. The company announced another 100 stores will open appliance departments and additional brands will be added to offer wider choices. Penney’s CEO noted about 70% of Penney’s customers are females, and 70% of customers are homeowners…… February automotive sales will be out this week, but Bloomberg is reporting the pickup segment may be seeing a price war breaking out. It notes General Motors in particular has increased incentives by 56% on the Chevrolet Silverado and 82% on the GMC Sierra compared to last year. Sales of those two models were down last year while competitors like Ford’s F-series and the Dodge Ram were up 5.2% and 8.7% respectively……Airlines aren’t usually a big category in most markets, but that could change this year as some of them expand domestic routes. United Continental has just announced a major expansion, adding routes from five hubs to 13 midsize cities and adding the number of flights in 15 existing routes. Some of United’s low-cost competitors are also expanding, such as Spirit Airlines adding about 30 new routes this year……We’ve seen successful expansion of breakfast into other dayparts in the restaurant business, and now Dairy Queen is looking to expand its lunch menu into other dayparts. DQ will now offer its $5 Buck Lunch into an all-day, every day item. “The 9-to-5 workday is a thing of the past,” a DQ exec commented……Even though the pizza segment has generally been doing much better than most of the other restaurant formats, Domino’s quarterly results were exceptionally strong with comp store sales growth of 12.2% for the quarter and 10.5% for the fiscal year (the second straight year of double-digit sales increases). A net of 171 new stores were added in the U.S. during the fiscal year……Reuters says Walmartis running a price-comparison test in more than 1200 stores and its squeezing vendors so that it can close a gap with discount grocers like Aldias well as compete with traditional competitors such as Kroger. “Walmart is trying to go back to where they were ten years ago when they were absolutely the low price leader,” a vendor said. Zima, a malt beverage popular in the ‘90s that was dropped by MillerCoorsin 2008 after sales slumped, is coming back in the United States later this year. The brand never caught on with its target audience - young men. But the success of other alcoholic drinks, like its own Henry’s Hard Soda line, prompted MillerCoors to give Zima another shot.
NETWORK NEWS
Timothy Omundsonwill star opposite Carol Burnett in the new ABC pilot Household Name. The comedy from executive producer Amy Poehlerand writer Michael Saltzman follows a family who has an opportunity to buy the house of their dreams, but first them must live with the previous owner, an eccentric larger than life actress named Vivian Valmont played by Burnett……Saturday Night Live has announced that Scarlett Johansson will host the long-running comedy-variety show on March 11th for the fifth time, with Lordeas musical guest……Shemar Moore (Criminal Minds) will return to CBS as star of the network’s reboot of S.W.A.T. Moore will play the lead lieutenant, Daniel “Hondo” Harrelson who is torn between loyalty to the streets and his duty to fellow officers. Stephanie Sigmanwas previously announced as female lead in the series……Typically, Jimmy Kimmel Live is in third place behind his competitors at CBS and NBC. That was not the case on Monday night as Kimmel became the temporary king of late night following the biggest snafu in Oscar history. The Nielsen overnight markets show Kimmel with a 2.6 household rating, beating Stephen Colbert’s Late Show with a 2.5 and Jimmy Fallon’s Tonight Show’s 2.2 household rating. Kimmel won the 18-49 ratings in the 25 LPM markets with a 0.8 demo rating, while Fallon posted a 0.7 and Colbert managed a 0.6……Fox is developing a new musical event about the Cotton Club, the hottest club in Harlem in the roaring ‘20s. Cotton Club will follow in the footsteps of other Fox musical programs including Grease: Live and The Rocky Horror Picture Show……Marvel’s Inhumanson ABC has cast Anson Mount (Hell on Wheels) in the lead role of Black Bolt, the king of the Inhumans. The character has a voice so powerful that the slightest whisper can destroy a city. Like the comic book character, the television character will not speak. Mount will join a cast that includes Iwan Rheon of Game of Thrones……ABC and 20th Century Fox have yet to start negotiations on new contracts for the adult cast of the hit series Modern Family. The news of the delay comes as the program just wrapped up its eighth season. The Hollywood Reporter says the holdup is due a conflict between 20th Century and ABC over the cost of the long-running show.
ECONOMIC RATINGS
The government’s revised analysis of fourth quarter Gross Domestic Product remained at 1.9% growth, but consumer spending in the quarter was revised upward to show a 3% gain. Negative factors holding down the number were lower spending by governmental units and business and a larger trade deficit…… The Commerce Department says orders for durable goods, meant to last three years or more, rebounded 1.8% in January after falling 0.8% in December. However, business orders for non-defense capital goods (excluding aircraft) dropped 0.4% in January from an upwardly revised 1.1% gain in December. Although the decline was a surprise, it is not seen as an end to the recent upturn in manufacturing activity.
BUSINESS BYTES
Without a lot of fanfare, Volkswagen has produced a 20.7% sales increase for the last three months, November and December of 2016 plus January, 2017. Of course, their sales numbers from the previous year were depressed by the diesel scandal, but there’s another factor in play: VW kicked off its buyback program in November and according to a survey of dealers 20-40% of drivers returning their vehicles have decided to buy a new Volkswagen. That’s quite a bit below traditional loyalty rates for auto brands, but it’s still a boon for VW dealers that have struggled for the last two years as VW sales had been down an average of 12.6% monthly for the 13 months before it started buybacks in November. There could be more good news ahead for VW dealers—the buybacks continue through the year and only about 20% of the affected vehicles have been brought back so far….Only two months into the year, there have already been two major deals in the restaurant business with Golden Gate Capital buying Bob Evans Restaurants and Burger King owner Restaurant Brands Inc. making a deal to acquire Popeyes Louisiana Kitchen. Nation’s Restaurant News says there are buyers willing to pay high multiples at the present time, and feels there are several publicly-traded companies that could become buyout targets. NRN suggests Dunkin’ Brands could be interesting to JAB Holding Company, which already owns the Krispy Kreme brand along with other foodservice concepts, and with Darden rumored to want to acquire another concept, BJ’s Restaurant Brewhousemight become a target for that company. Other likely targets are the Bravo Brio Restaurant Group (which has already said it’s exploring strategic alternatives), Fiesta Restaurant Group (parent of Pollo Tropical and Taco Cabana, currently operating with an interim CEO) and Noodles & Company, currently dealing with store closures and a data breach.
THIS AND THAT
Meredith Corporation is emphasizing Facebook Live streaming by its local TV stations to reach new viewers on social media who might not tune in to local news. Meredith is using Wirecast Gear from Telestream.
COMPETITIVE INFO
We reported yesterday on how well News/Talk radio is doing in the current political climate, and certainly cable news networks are also enjoying a big bounce based around the new administration. Both ratings and advertiser spending are trending upwards for the news nets and Medialifemagazine reports ad spending on the Big 3 news nets amounted to a 31.2% gain over January, 2016. MSNBC got the biggest bounce, up 49.2% while Fox News Channel saw 34.2% more dollars. CNN was a bit behind, but still produced 19.9% more revenue. The news segment helped total cable network rise by 8.2% while total media television spending rose by 5.7%, according to Standard Media Index analysis.
AVAILS
Do you dream of a well-balanced professional and personal life? Are you interested in living in a community that offers an abundance of fresh air where you can hike, bike, boat and hunt…right outside your doorstep? KTVO ABC and CBS is located in Kirksville MO, serving the Kirksville MO\Ottumwa IA market, has an opening for a Sales Manager. We’re looking for someone who is motivated to learn and grow in this position. Get more info or apply now at: look for job #7626. EEO/Drug Free
NCC Media in New York seeks an Automotive Marketing Associate. This person will develop account specific and industry marketing presentations and collateral materials for NCC Media’s Automotive Marketing Team. Work alongside the sales, marketing, promotions and research teams to create advertising proposals that include television and digital media across multiple devices to help drive revenue from national, regional, and local automotive advertisers to our cable affiliates in all 210 local markets across the US. To apply, send resume to . EOE.
KMTR TV, an NBC affiliate in beautiful Eugene, Oregon, is looking for a Station Manager with a strong focus on local sales. If you’re a person of integrity who knows how to build team, we should talk. Our #1 job is to bring customers to our clients. When we do that, we become indispensable to them. And when we consistently follow-through with what we promised, then we become partners with them. So if you’re all about putting the client first, send your resume to: . EOE
WKRN News 2, the ABC affiliate in Nashville, TN and a Nexstar station, is currently seeking a Dynamic and passionate Local Sales Manager to lead our local efforts. The LSM will be involved in all aspects of the sales operation, including overall budget and market share performance, accurate forecasting, inventory control and team development. The successful candidate will be a motivational leader with a clear focus on new business and digital revenue development. Qualified candidates should apply at EOE/M/F/V/D - No phone calls please!
NBCUniversal seeks a Digital Sales Manager for NBC6 in the Miami Market. The DSM will manage local digital sales effort to achieve/exceed NBC6 digital revenue targets. Will be responsible for one direct report, and with supporting the local sales team to achieve/exceed their digital revenue targets. Bachelor’s/Master degree and a minimum of 5 years of relevant sales experience preferred. Must have a demonstrated strong level expertise within the digital media space with an emphasis on mobile, video and sponsorship sales. Please CLICK HEREto get more information or to apply now. EOE.
KELOLAND, (Sioux Falls), one of the top CBS affiliates, seeks an experienced, high performing, multi-platform media seller who is interested in a rare opportunity to join the best team and sell the best platforms in the KELOLAND market. Candidate must be willing to move at a fast pace and be capable of successfully contributing to all revenue streams with both new and existing clients. Our AEs are well compensated and perform at market leading levels. CLICK HEREfor more info or to apply now. (Job ID: KLO-000048)
WFTS-TV / ABC Action News in beautiful Tampa Bay has an immediate opening for a National Sales Assistant. Ideal candidate is super organized, has strong communication skills, and the ability to handle multiple tasks under tight deadlines. If you’ve been dreaming of re-locating to sunny Florida and working for an upbeat and innovative sales management team, this is your opportunity! Qualified candidates can CLICK HEREto apply. Requisition #12778.EOE.
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SPOTS N DOTS
The Daily News Of TV Sales
March1, 2017
Phone: 888-884-2630