Spots N Dots
The Daily News Of TV Sales
March 16, 2016
UPFRONT LOOKING STRONG FOR NETWORKS
FOX NETS PITCHING DATA, NOT NIELSEN
We’ve had several reports recently that major advertisers are turning back to television after disappointments with ROI from online-heavy campaigns. Now Variety is reporting that TV networks appear to have pricing power in the Upfront for the first time in years.
Advertisers have been purchasing more scatter inventory, but scatter prices have risen, so more advertisers are expected to lock in prices in the Upfront. Variety says Upfront commitments may increase for the first time since 2011, when post-recession drove TV buying.
The story says CPM increases this year could be anywhere from 5% to 9%. That compares to the 3-5% hikes reportedly sought last year by CBS, around 5% by NBC, 4-5% by ABC and a drop of 2% for FOX.
But while the broadcast offerings of the Big Four are more attractive to advertisers, the report says the networks will also have to include the digital extensions of such hits as The Voice on NBC and The Big Bang Theory on CBS to land big Upfront commitments. Online is increasingly demanded as part of the media mix.
Nor is it all about Nielsen ratings. Fox Networks Group—which cuts across broadcast and cable properties—is going into Upfront negotiations with several data-based advertising products that go beyond just age and gender. One offering is the Target Audience Guarantee: providing a targeted CPM guarantee across the Fox linear networks. A Multiplatform Guarantee provides a targeted CPM across both linear and non-linear properties. The Fox nets are also offering Linear Programmatic Buying (which is pretty much self-explanatory) and the new Optimized Audience Read is providing advertisers with data-driven commercial inventory recommendations based on advertiser-supplied targets. It’s all made possible with Audience Insights Manager, a suite of data-driven buying tools.
“We are open to doing business in new ways. That’s really the bottom line,” Fox Networks Group president of ad sales Toby Byrne told Variety.
Of course, Viacom for some time now has been emphasizing metrics other than Nielsen ratings for its sales efforts—largely a response to its battle with Nielsen over the accuracy of its declining ratings. The Fox Networks Group, it appears, is coming into the Upfront with its new products from a stronger position. And those two companies aren’t the only ones emphasizing data. Just about everyone is pitching something to show how cutting edge they are with slicing and dicing data to maximize ROI for advertising clients.
ADVERTISER NEWS
The Fresh Market, which said last year it would review strategic alternatives, has agreed to be acquired by private equity firm Apollo Global Management, which describes itself as “contrarian, value-oriented investors” (and previously owned Sprouts Farmers Market). Fresh Market currently operates 186 stores in 27 states……Also in the supermarket industry, Ahold shareholders have approved the merger with Delhaize and the deal appears to be on track for completion this summer. As we’ve reported, a merger could have major impact on East Coast markets as Ahold owns Stop & Shop and two Giant divisions, while Delhaize owns Hannaford and Food Lion……Children’s Place issued an upbeat forecast—in its latest fiscal quarter, same-store sales were up 6.7% and in the first six weeks of the current quarter, the numbers are even better at plus 9.7%. The chain has been closing some of its weaker stores, but still operates about 1,070……Shoe retailer DSW said it needed to do a lot of discounting to get a 0.7% same-store increase in its latest quarter, causing profit to fall by half. It projects 1-2% comp growth this year……Most of the attention in the retail pharmacy segment is directed towards the big three national chains (two of which are trying to merge) but now Benzer Pharmacy is looking to attract independent pharmacy owners to become franchisees to add to its current 50 locations. Tampa-based Benzer expects to add two new pharmacies a month this year……Here’s another Florida-based company looking to expand: Orlando’s uBreakiFix, currently with about 170 locations, hopes to get to 275 this year. As the name implies, the company specializes in repairs of small electronics such as phones and cameras, with an average sale around $85……We’ve been reporting on deals in the convenience store business but one major company, TravelCenters of America, says it’s backing off acquisitions because multiples are “out of whack.” Fuel margins are starting to come down in the industry, but non-fuel revenues continue to climb. As well as using the TravelCenters brand, TA also operates the Petro brand name in 43 states and Minit Mart in eleven states……We’ve been reporting on lots of restaurants that want to expand, but Nation’s Restaurant News reports it’s getting harder to find locations at rents that can make expansion profitable. Fast-casual concepts are growing the fastest (up by 5% to 19,043 locations last year according to The NPD Group), and one restaurant real estate VP said, “Every deal I’m looking at, there are one or two other pizza guys and half a dozen other fast-casual guys. We’re all looking for end caps.”
NETWORK NEWS
Dumped by Ben Higgins on The Bachelor, heartbroken Jo Jo Fletcher will get her revenge as she stars in the 12th edition of The Bachelorette, premiering Monday, May 23 on ABC……Fox News Channel's (FNC) Megyn Kelly will launch her first primetime special on FOX Monday, May 23, at 8:00 pm (ET). Broadcast television veteran Bill Geddie will serve as executive producer of the special, which will be produced by his company, May Avenue Productions. The one-hour special will feature a variety of celebrity interviews from the world of politics, entertainment and other areas of human interest……Based on strong viewership for its first two episodes, NBC has renewed Little Big Shots for a second season. The series comes from executive producers Ellen DeGeneres and Steve Harvey, who also hosts……This will be a big soccer weekend as NBC Sports Group’s Premier League coverage airs one of most anticipated matches of the season live on both NBC and Telemundo at Noon (ET), Sunday, March 20. Fourth-place Manchester City host rivals sixth-place Manchester United in the 171st Manchester Derby.
MONDAY RATINGS
The season finale of The Bachelor gave ABC the Monday demo win in the Nielsen overnights. The Alphabet Net posted a primetime average 2.8 in Adults 18-49 and 6.1 in Households, with an average audience of 9.415 million viewers. NBC, with The Voice, had the biggest audience, scoring 2.5 18-49, 6.3 HH and 10.317 million; CBS, led by Scorpion, 1.4 18-49, 5.1 HH and 8.038 million; FOX, with Gotham, 1.3 18-49, 2.5 HH and 3.943 million; Univision 0.7 18-49, 1.0 HH and 1.796 million; Telemundo 0.5 18-49, 0.7 HH and 1.347 million; and The CW 0.2 18-49, 0.4 HH and 0.592 million.
WEEKLY RATINGS
For Week #25, March 7-13, NBC was at 1.6 18-49 and 4.5 HH; CBS 1.2 18-49 and 4.1 HH; ABC 1.2 18-49 and 3.1 HH; FOX 1.0 18-49 and 2.1 HH; Univision 0.7 18-49 and 1.0 HH; Telemundo 0.4 18-49 and 0.6 HH; and The CW 0.3 18-49 and 0.7 HH.
COMPETITIVE INFO
CBS Corporation CEO Les Moonves says the company is exploring “strategic options” for the CBS Radio division. “We will begin to officially explore strategic options for radio as a whole. Just as we did when we separated outdoor, the aim here is to unlock value for our shareholders. There are a number of options for doing this, and we'll be looking at all of them," Moonves told the company’s investor day gathering.
FEBRUARY ADVERTISING UP 7%
The early take on February ad spending from Standard Media Index (SMI) is that total market advertising revenues were up 7% on a year-over-year (YoY) basis.
The television sector recorded a healthy rise to grow by3% YoY in February. Cable TV spending saw the highest growth with 7%, howeverbroadcast TV fell by 3% for the month.
Digital ad volumes displayed dynamicgrowth, increasing by 18% YoY in February. Internet radio(62%), video sites(42%) and social media sites(29%) allsaw the largest YoY jumps in the sector.
The top growth categories for February2016on a YoY performance werePrescription Pharmaceuticals (46%), Quick Serve Restaurants (27%) and Food, Produce and Dairy (25%).
ARBITRATION ON TAP FOR NBCU-DISH DISPUTE
NBCUniversal had been warning Dish Network subscribers that NBCU’s cable networks and broadcast O&Os could be blacked out next Sunday because of an impasse on terms for a new carriage agreement. But Dish filed suit on Tuesday for contract breach, claiming NBCU is forbidden from blacking out its networks under the terms of the agreement that won regulatory approval of Comcast’s acquisition of NBCU. Dish claims that gives it the right to demand binding arbitration—and it is doing so.
“Should Dish proceed with arbitration we will of course participate in the process, and look forward to receiving the fair market value for our portfolio of networks,” an NBCU spokesperson told Spots n Dots. So it looks like there’ll be no blackout and we’ll learn how arbitration works in carriage disputes.
THIS AND THAT
Two months after investing in Lyft, General Motors has launched the Express Drive short-term rental program exclusively for Lyft drivers. Express Drive begins later this month in Chicago and will soon roll out to additional cities including Boston, Washington D.C., Baltimore and others. With Express Drive, the more the participants drive, the less they pay. Express Drive will start at $99 per week for a Chevrolet Equinox, including insurance and maintenance. But when drivers complete 65 rides a week in Chicago, they will be able to access a vehicle at no weekly rental cost…… The Commerce Department reported that sales at retail stores and restaurants fell 0.1% in February to a seasonally adjusted $447.31 billion. Also, January figures were revised sharply downward, with January retail sales down 0.4%—rather than the previously reported 0.2% increase……Lane Bryant has taken to Twitter to slam broadcast networks for refusing to air its latest “ThisBody” spot featuring plus-size models in underwear and sometimes nude with folded arms and legs carefully positioned. NBC told CNN the spot would need minor edits to meet its broadcast indecency guidelines. ABC, which also rejected the spot, declined to comment to CNN. Was this a stunt? Lane Bryant doesn’t plan to edit the spot to deal with network objections, but is busy gathering publicity by posting the rejected spot online and complaining loudly about its treatment by the networks.
DONE DEAL
Trevor Heaton has been promoted to Senior Vice President of Political Sales at Katz Television Group, overseeing the political vertical across all KTG divisions and regions. Heaton is a 15-year veteran of the rep firm.
AVAILS
WNCN CBS North Carolina in Raleigh, NC is seeking a Digital Account Executive. This person will help develop, comprehensive media solutions to successfully maximize interactive (web and mobile) revenue from new and existing advertisers to achieve or exceed sales budgets. A minimum of three years sales experience with a demonstrated track record of success in new business development. Must have excellent interpersonal, oral and written communication skills. Apply at www.mediageneral.com/careers, job #NCN-000414. No calls please. EOE/M/F/D/V. Pre-Employment Background/ Drug Screen required.
KCCI-TV, Hearst Television’s CBS affiliate in Des Moines, has an opening for an experienced Local Sales Manager. We're looking for a leader with a proven track record of success in multi-platform sales. Ideal candidates should be highly organized, driven, disciplined and someone who enjoys creating a high performance culture with strong accountability. Must be able to build and maintain client relationships. Leadership ability is essential. Candidates interested should CLICK HERE to apply. Equal Opportunity Employer.
General Sales Manager: Hawaii News Now, Hawaii’s leading multi-media company has an exciting opportunity to join our great team! We are looking for a dynamic, entrepreneurial sales leader with a proven record of consistent achievement in leading and building strong, high performing sales cultures to become the leader of 30+ motivated and competitive account executives, sales assistants and traffic personnel at KHNL (NBC affiliate) and KGMB (CBS affiliate). Get full details and APPLY HERE. No calls please. EOE-M/F/D/V
NBCU seeks a Director of National Sales for their Dallas office. This person will be responsible for managing all national sales efforts for the NBC Owned TV Stations, the NBC-represented Comcast Sportsnets and their Digital platforms across the Texas-Colorado-Oklahoma-Kansas-Arkansas-Louisiana regions. The primary responsibility will be to effectively implement the station groups' collective strategy with all agencies and advertisers in order to grow revenue and achieve business plan goals. CLICK HERE to learn more or to apply. EOE
WBTV CBS/wbtv.com/BOUNCE TV, in Charlotte, NC seeks an experienced Multi-Screen Regional Marketing Specialist. Candidate must demonstrate a thorough knowledge of agency negotiations, a track record of successful new business and internet development. Candidate must be detail-oriented, a problem solver and have professional presentation skills. Three years broadcast experience required and a college degree preferred. Qualified applicants, please APPLY ONLINE and attach resume and links to your work. No phone calls please. EOE/M/F/D/V