Spots N Dots
The Daily News Of TV Sales
March 10, 2016
AGENCIES GUNG-HO FOR STREAMING VIDEO
INTEREST GROWS IN LOCAL TV AND CABLE
Streaming video and audio options are heating up for advertising agencies, according to a fourth quarter survey conducted by STRATA. The survey found that three-quarters of agencies are more interested in streaming video than a year ago, and over half are more interested IN streaming audio. Amid a backdrop of inventory and fraud concerns, streaming options are still providing a solid ROI for many agencies, the survey found. 40% are “fairly confident” they are getting a good value out of their streaming video buys, while an equal amount aren't quite sure yet. Hitting the campaign's targeted audience remained a top focus as 44% said their online video buys are reaching their intended audience "most of the time" and 39% said it reaches them "only sometimes".
With the election season picking up steam, local TV witnessed an increase in agency attention as nearly a quarter of those polled said they are more interested in it than they were last year, while 24% are more interested in local cable. Overall, 42% of agencies are more focused on local TV/cable than any other medium for their campaigns (digital was second at 32%).
Mobile and digital advertising also saw a major boost in agency attention. Digital remained strong with 84% of agencies that said they are more interested in it than one year ago. Digital has remained around 80% for the last 16 quarters. Online display drove digital for 85% of agencies, followed by search (71%), mobile (70%), and social (66%). While second on that list, mobile witnessed a bump as 77% are more interested in mobile compared to a year ago (an increase of 12% from the previous quarter).
The percentage of agencies that pay for social media almost doubled from the previous quarter. Over a third (38%) of agencies are allocating between 6-10% of their budgets for paid social advertising, a 43% increase from last quarter. Instagram vaulted to the third spot in social media for agency campaigns behind Facebook (93%) and YouTube (59%) Along with Instagram's upward trajectory, Twitter lost ground. Both have 49% of agencies that planned on using those platforms in ad campaigns, but Instagram spiked 84% from last year while Twitter declined 8%.
"The results of the STRATA Survey confirm what we've been hearing from advertisers for some time. The ad industry continues to fragment as players like Instagram and streaming options gain market share. Even so, more established players continue to dominate, with local TV and Facebook still leading video and social," saidJ.D. Miller, Director at STRATA.
Programmatic buying continued to gain agency interest even as inventory concerns linger. Just under half of agencies plan on using programmatic to conduct 10-20% of their business this year, while 30% will refrain from using programmatic, the lowest percentage ever in the STRATA survey.
ADVERTISER NEWS
The CEO of Dick’s Sporting Goods has confirmed speculation that Dick’s is interested in buying the leases of some of the Sports Authority stores that chain will be closing after filing for bankruptcy protection. Ed Stack said that if Dick’s does pick up some of those stores, the addition would be on top of already-announced Dick’s expansion plans……Good news for Darden Restaurants: On a slightly-different calendar than the previous year, preliminary estimates for same-store sales for the quarter that ended on 2/28 showed a 6% gain that was well above expectations. On a “comparable calendar” basis, the gain was 4%...... But bad news for Chipotle. After all the negative publicity late last year the chain would like to stay out of the headlines for a while, but it has now shut down a restaurant in the Boston market after some employees became sick……Ovation Brands has closed another 92 locations of Old Country Buffet, HomeTown Buffet, and Ryan’s. Nation’s Restaurant News reports the company consisted of about 675 locations a decade ago now is down to about 150 units. Food Management Partners had taken over the company last summer when it still had over 300 units in operation……Del Taco reported a 5.8% same-store sales gain for the fourth quarter helped by a price increase of about 3.5%. The chain of about 550 restaurants expects comp gains around 3% this year……Overall comp store sales at Conn’s were down 4.8% last month, but the company says it’s because of a prior decision to exit some product categories. Major appliances comps were up 0.4% and the furniture/mattress revenue grew 12.2%...... Despite the category again coming under pressure from a number of sources, there has been a resurgence lately for prescription drug advertising, and there is a reason for that: The Wall Street Journal reports spending on scripts was up 12.4% in 2014 (latest final data available) and is now expected to increase by 7.3% annually, after rising just 2% annually between 2008 and 2012. Along with the obvious demographic trends such as the aging of the Baby Boomers generation, increases are attributed to higher-priced specialty medications and greater insurance coverage from the Affordable Care Act……Marketwatch has issued a list of retailers it says are “outperforming their beleaguered peers.” Several different retail segments are included but Lithia Motors tops the list after reporting a 9.0% comp store sales growth in the latest quarter. Others outperforming their categories are MarineMax, Foot Locker, O’Reilly Automotive, Sprouts Farmers Market, TJX, Express, L Brands, Carter’s, and Lowe’s. Some other chains are competitive with these in sales growth, but are attaining their growth with reduced margins and profit.
NETWORK NEWS
A crossover event will have Grant Gustin—The Flash from The CW—appear from an alternate universe to help Supergirl (Melissa Benoist) battle Siobhan, aka Silver Banshee, and Livewire in exchange for her help in finding a way to return him home. The special episode of Supergirl airs Monday, March 28, at 8:00 pm (ET) on CBS……ABC Entertainment and Marvel Television are testing the physical and mental limits of three super-fans as they compete for the adventure of a lifetime in a new five-part digital original series, Marvel's Agents of S.H.I.E.L.D.: Academy. The online experience is sponsored by Lexus.
TUESDAY RATINGS
The Voice overwhelmed other programming on Tuesday night, giving NBC an average 3.0 rating in Adults 18-49 in the Nielsen overnights, along with an 8.0 in Households and an average audience of 13.172 million. CBS, with Limitless and reruns, was at 1.1 18-49, 4.7 HH and 7.289 million; ABC, with Fresh off the Boat, 1.0 18-49, 2.4 HH and 3.767 million; Univision, with the premiere of Sueno de Amorat, 0.8 18-49, 1.1 HH and 2.071 million; FOX 0.7 18-49, 1.2 HH and 1.836 million; Telemundo 0.6 18-49, 0.8 HH and 1.477 million; and The CW 0.3 18-49, 0.6 HH and 0.971 million.
TEMKIN: CUSTOMERS LOVE THEIR SUPERMARKETS
Supermarkets accounted for all of the top four, and six of the top eleven spots in the 2016 Temkin Experience Rankings study, which is based on customer feedback of their recent interactions with companies. Almost 300 companies from 20 industries were studied in an online survey of 10,000 U.S. consumers.
Temkin uses three criteria to calculate rankings, asking consumers to what degree they were able to accomplish what they wanted to with a company, how easy was it to interact with the company, and how did they feel about those interactions. Respondents are asked to rate those factors on a scale of 1-to-7, with 1 being the most negative experience and 7 being the best experience. In calculating the final ratings for each company, Temkin takes the percentage of responses that were 6s or 7s, subtracts the responses that were 1, 2, or 3, and then averages all three components.
For the second year in a row, Publix provided the best customer experience in the study, with a rating of 81 (which was actually down a bit from last year’s 85 rating). H-E-B was second with a 79, just ahead of Kroger’s 78 and an equal score for Save-a-Lot. The other supers in the top eleven (there was a 3-way tie for ninth place) were Wegman’s, just a point behind at 77 and Aldi at 76. Other companies in the top group were True Value and Chick-fil-A, each at 78; “a credit union” at 77; and O’Reilly Auto Parts and Amazon.com, each at 76.
Supers were also very prominent in the top-25 rankings (actually 27 companies included ties). Giant Eagle, ShopRite and Food Lion all scored a 75 rating while Hy-Vee, Winn-Dixie, Wawa Markets and Trader Joe’s all were tied for 20th place at 74.
After Chick-fil-A, only three other restaurants were in the top-25. Subway was in a 12th place tie with a 75 rating, while IHOP and Little Caesar’s each received a 74 score. A variety of other businesses rounded out the top-25, including USAA, QVC, Dollar Tree, and Regions, all with 75s, and Dollar General and Sam’s Club, each with a 74.
Many health plans were among the weakest scores, although television and internet service providers again did not generally score well. Chain Store Age notes that the average scores for all 20 industries were down this year compared to the previous study. The percentage of companies seen as excellent or good was 37% a year ago, and just 18% this year.
Rankings for all companies included in the study are available at temkinratings.com.
PUBLICIS MEDIA AGENCIES REORGANIZED
Publicis Groupe has restructured its previous six media operations into four global brands. Starcom and Zenith will continue to operate as global agency brands. MediaVest|Spark combine as a third brand and Optimedia|Blue 449 will be joined as the fourth brand.
In the U.S. Chris Boothe will become CEO of Mediavest|Spark and Dave Ehlers of Optimedia|Blue 449. Lou Rossi continues at Zenith. Lisa Donohue is becoming global brand president for Starcom, but will also continue as the brand’s U.S. CEO until a successor is named.
THIS AND THAT
Volkswagen of America president and CEO Michael Horn has suddenly left the company “by mutual agreement.” VW sales have been falling and the company is negotiating with regulators over its cheating on diesel emission tests……Nielsen announced a renewal by Capitol Broadcasting Co. for continued access to Nielsen local TV ratings, Nielsen Scarborough and Nielsen Local TV View.
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.
Research Director, Boston: The Research Director is responsible for providing research-based audience and competitive insights to the Business, Sales and Content leadership of NBC Boston, Telemundo Boston and NECN. This person will manage all aspects of syndicated audience research for the broadcast and digital properties, with a primary focus on Nielsen ratings and audience quality tools such as Scarborough, Simmons, etc. CLICK HERE to learn more about this position, or visit http://www.nbcunicareers.com/ and search for job number 26179BR. Equal Opportunity Employer.
CMG and Tulsa TV are seeking a Creative Services Writer/Producer. This person is responsible for creatively promoting FOX23 News, as well as entertainment programming and community service efforts, for FOX23 and My41, while consistently reinforcing the stations’ brands. This includes generating ideas for individual spots or campaigns—taking a spot from initial concept to a ready-for-air product. This position works closely with the News Department to clearly communicate the viewer benefit of a story, a newscast, or other station initiative. CLICK HERE to apply. EOE.
Media General's KRON4, the San Francisco Bay Area's Local News Station, seeks a Digital Account Executive. The DAE will identify, develop, and expand existing and new client relationships & key accounts, maintain close communications at various stages in the sales cycle including account updates, & provide weekly projections & forecasting of future advertising. Strong oral, problem solving, writing, negotiation and presentation skills, extensive travel and long work hours required. Qualified applicants can APPLY HERE. Please indicate where you heard about this job opening. EOE.
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