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www.spotsndots.com Subscriptions: $350 per year. This publication cannot be distributed beyond the office of the actual subscriber. Need us? 888-884-2630 or [email protected] Copyright 2018. The Daily News of TV Sales Tuesday, October 2, 2018 ATTRIBUTION A HOT TOPIC The media world is changing quickly and television is right in the middle of the transition. That’s an early theme developing at this year’s Advertising Week in New York. There’s little doubt video is playing a larger role. “Consumer time spent has increased by 45% in the last 15 years,” Nielsen SVP Kelly Abcarian pointed out. But new technology and new demands from clients are shaking up the sales process. That point was hammered home by Univision president of advertising sales Steve Mandala, who revealed that his company is now selling a percentage of its ad packages with a performance guarantee. It’s not a guarantee based on audience delivery— but on sales results. “It’s a tough thing to do to get that precise kind of attribution, but we have found some methods whereby we can do that,” Mandala said. He didn’t name any specific clients but did share that the product categories have included movie studios and pharmaceutical companies. “The digital world has forced the television industry to becoming more sophisticated in the way it looks at things,” Mandala said. But he added it’s still “too early” for most companies trying to develop attribution-based sales. He also doubts it will ever take over TV sales completely. “But I think it’s another piece of the media economy that will continue to grow.” Tom Donohue, chief operating officer at New York Interconnect, which sells advertising for the three cable systems in the metro, agreed digital is changing the TV business. “We are going to see a world where unicast makes us more digital like than multicast.” Donohue predicted as the cable companies allow consumers to access content beyond their television sets the digitalization of TV will only accelerate. “You’re going to find the OTT platforms become equal to what we can offer in the cable business,” he said. But for all that’s changing, content and its ability to lure viewers remains the driving force behind it all. “Nothing happens until someone watches something,” Mandala said. “Technology provides ways for consumers to enjoy that content in different forms. And technology provides an opportunity for advertisers to target the viewers of content in different ways, but it keeps coming back to content.” Donohue agreed, and said even as there’s buzz about all the great TV shows available today, sellers shouldn’t worry too much about quality. “If they’re watching it, that’s all that we care about,” he said. Tal Chalozin, CTO at the video marketing company Innovid which works with more than 200 brands, agreed. “We care more about the audience and the outcomes.” Mandala’s advice for anyone in media is to stay on their toes. “I don’t think anybody has all the answers. “We’ve all got to stay really curious and ask a lot of questions as we go through this to figure out what the path is going forward.” ADVERTISING WEEK: VIDEO CONTINUES TO GROW ADVERTISER NEWS The Wall Street Journal reports that Harley-Davidson is facing a particularly tough competitor for new riders: its own used motorcycles. Three used Harleys are sold in the U.S. for every new one. A decade ago, it was the other way around. New motorcycle sales in the U.S. are down by half from a 2006 peak, while used sales are up 13 percent. Milwaukee-based Harley in 2018 is heading for its fourth straight year of declining sales.... Chipotle Mexican Grill is introducing a loyalty program. USA Today says Chipotle Rewards has gone live in three cities: Phoenix; Kansas City, Kan.; and Columbus, Ohio – and will roll out nationally next year. Enrollees in the program who order online or via the app earn 15 points for every $1 they spend, while those who order in person receive 10 points, according to the company. A free entrée requires 1,250 points... Meanwhile, Oppenheimer has downgraded Chipotle’s stock, saying Wall Street is too optimistic about the company’s earnings trajectory. The shares have already been upgraded nearly a dozen times – and their price has soared nearly 80 percent – since Brian Niccol was announced as CEO in February... USA Today says Target is about to launch one of its limited collections. But it’s not teaming up with a celebrity or a fancy label. Target’s new fashion collaboration for the first time is with a nonprofit. The capsule collection, part of Target’s women’s apparel brand A New Day, was designed with Vital Voices, an organization that supports women tackling an array of issues in their communities, from job training to criminal justice reform. The line goes on sale Saturday and will be available for several weeks in more than 1,000 stores as well as on Target.com... Retail Drive reports that Amazon has quietly joined in the ongoing disruption of mattress sales with a new AmazonBasics private label option. The offering was noted over the weekend by TJI Research, a service launched last month that tracks the business of Amazon. Amazon’s AmazonBasics Memory Foam Mattress comes in twin, full, queen, king and California king sizes, starting at $130 for the thinnest twin... Chain Store Age says Walmart wants to monitor “stressed out” shoppers. The retail giant filed a patent for a “biometric feedback cart handle” that tracks heart rates and temperatures, obtained from the customer holding the shopping cart. If an elevated heart rate is detected, an associate is notified and approaches the customer for assistance, according to the patent application.... One out of every five shoppers who recently switched grocery stores are loyal to Aldi, Bloomberg reports, according to grocerydive.com. The discount grocer is getting more new shoppers than Costco, Target, Kroger, and Amazon. Aldi is in the midst of a major store expansion and plans to build 700 new nationwide locations — for a total of 2,500 U.S. stores — in the next four years. Walmart and Kroger still account for one-third of the grocery market, with Aldi only controlling 2%. However, about half of those market leaders’ locations have an Aldi within five miles.
Transcript
Page 1: ADVERTISING WEEK: VIDEO CONTINUES TO GROWDigiday reports that while subscription services might dominate the OTT video market today, free, ad-supported platforms are on the way. They’re

www.spotsndots.comSubscriptions: $350 per year.

This publication cannot bedistributed beyond the office

of the actual subscriber. Need us? 888-884-2630 or

[email protected] Copyright 2018.The Daily News of TV Sales Tuesday, October 2, 2018

ATTRIBUTION A HOT TOPIC The media world is changing quickly and television is right in the middle of the transition. That’s an early theme developing at this year’s Advertising Week in New York. There’s little doubt video is playing a larger role. “Consumer time spent has increased by 45% in the last 15 years,” Nielsen SVP Kelly Abcarian pointed out. But new technology and new demands from clients are shaking up the sales process. That point was hammered home by Univision president of advertising sales Steve Mandala, who revealed that his company is now selling a percentage of its ad packages with a performance guarantee. It’s not a guarantee based on audience delivery—but on sales results. “It’s a tough thing to do to get that precise kind of attribution, but we have found some methods whereby we can do that,” Mandala said. He didn’t name any specific clients but did share that the product categories have included movie studios and pharmaceutical companies. “The digital world has forced the television industry to becoming more sophisticated in the way it looks at things,” Mandala said. But he added it’s still “too early” for most companies trying to develop attribution-based sales. He also doubts it will ever take over TV sales completely. “But I think it’s another piece of the media economy that will continue to grow.” Tom Donohue, chief operating officer at New York Interconnect, which sells advertising for the three cable systems in the metro, agreed digital is changing the TV business. “We are going to see a world where unicast makes us more digital like than multicast.” Donohue predicted as the cable companies allow consumers to access content beyond their television sets the digitalization of TV will only accelerate. “You’re going to find the OTT platforms become equal to what we can offer in the cable business,” he said. But for all that’s changing, content and its ability to lure viewers remains the driving force behind it all. “Nothing happens until someone watches something,” Mandala said. “Technology provides ways for consumers to enjoy that content in different forms. And technology provides an opportunity for advertisers to target the viewers of content in different ways, but it keeps coming back to content.” Donohue agreed, and said even as there’s buzz about all the great TV shows available today, sellers shouldn’t worry too much about quality. “If they’re watching it, that’s all that we care about,” he said. Tal Chalozin, CTO at the video marketing company Innovid which works with more than 200 brands, agreed. “We care more about the audience and the outcomes.” Mandala’s advice for anyone in media is to stay on their toes. “I don’t think anybody has all the answers. “We’ve all got to stay really curious and ask a lot of questions as we go through this to figure out what the path is going forward.”

ADVERTISING WEEK: VIDEO CONTINUES TO GROWADVERTISER NEWS The Wall Street Journal reports that Harley-Davidson is facing a particularly tough competitor for new riders: its own used motorcycles. Three used Harleys are sold in the U.S. for every new one. A decade ago, it was the other way around. New motorcycle sales in the U.S. are down by half from a 2006 peak, while used sales are up 13 percent. Milwaukee-based Harley in 2018 is heading for its fourth straight year of declining sales.... Chipotle Mexican Grill is introducing a loyalty program. USA Today says Chipotle

Rewards has gone live in three cities: Phoenix; Kansas City, Kan.; and Columbus, Ohio – and will roll out nationally next year. Enrollees in the program who order online or via the app earn 15 points for every $1 they spend, while those who order in person receive 10 points, according to the company. A free entrée requires 1,250 points... Meanwhile, Oppenheimer has downgraded Chipotle’s stock, saying Wall Street is too optimistic about the company’s earnings trajectory. The

shares have already been upgraded nearly a dozen times – and their price has soared nearly 80 percent – since Brian Niccol was announced as CEO in February... USA Today says Target is about to launch one of its limited collections. But it’s not teaming up with a celebrity or a fancy label. Target’s new fashion collaboration for the first time is with a nonprofit. The capsule collection, part of Target’s women’s apparel brand A New Day, was designed with Vital Voices, an organization that supports women tackling an array of issues in their communities, from job training to criminal justice reform. The line goes on sale Saturday and will be available for several weeks in more than 1,000 stores as well as on Target.com... Retail Drive reports that Amazon has quietly joined in the ongoing disruption of mattress sales with a new AmazonBasics private label option. The offering was noted over the weekend by TJI Research, a service launched last month that tracks the business of Amazon. Amazon’s AmazonBasics Memory Foam Mattress comes in twin, full, queen, king and California king sizes, starting at $130 for the thinnest twin... Chain Store Age says Walmart wants to monitor “stressed out” shoppers. The retail giant filed a patent for a “biometric feedback cart handle” that tracks heart rates and temperatures, obtained from the customer holding the shopping cart. If an elevated heart rate is detected, an associate is notified and approaches the customer for assistance, according to the patent application.... One out of every five shoppers who recently switched grocery stores are loyal to Aldi, Bloomberg reports, according to grocerydive.com. The discount grocer is getting more new shoppers than Costco, Target, Kroger, and Amazon. Aldi is in the midst of a major store expansion and plans to build 700 new nationwide locations — for a total of 2,500 U.S. stores — in the next four years. Walmart and Kroger still account for one-third of the grocery market, with Aldi only controlling 2%. However, about half of those market leaders’ locations have an Aldi within five miles.

Page 2: ADVERTISING WEEK: VIDEO CONTINUES TO GROWDigiday reports that while subscription services might dominate the OTT video market today, free, ad-supported platforms are on the way. They’re

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

NETWORK NEWS Meghan McCain will return to ABC’s The View on Monday, the co-host tweeted yesterday. McCain has been away from the table since the talk show’s 22nd season premiere in September, grieving the loss of her father, Sen. John McCain, who died Aug. 25...

FREE, AD-SUPPORTED SERVICES TAKING ROOT Digiday reports that while subscription services might dominate the OTT video market today, free, ad-supported platforms are on the way. They’re increasingly finding viewers on internet-connected TVs, and the growth is proving to be an opportunity for video programmers searching for distribution. The Roku Channel, a free video streaming service from the connected-TV device maker with movies and TV shows and a handful of 24-hour linear channels from digital publishers, is now the fifth-most popular app on Roku in terms of reach, the company said. Roku declined to reveal an exact number of viewers for The Roku Channel, but Roku’s platform as a whole had 20.8 million registered users at the end of June. Other free video streaming services are also managing to build an audience on connected TV screens. Pluto TV now has roughly 10 million monthly active users; Xumo had 3.5 million monthly active users at the end of July, with viewership growing by 325 percent over the past year, the company said. Then there’s Amazon, which is reportedly working on a free, ad-supported streaming app that would offer licensed movies and TV shows and other programming for Fire TV users. The growth of these services comes as people increasingly purchase and use connected TV devices including streaming dongles and boxes, gaming consoles and web-enabled smart TVs. According to a recent eMarketer estimate, there are 88.7 million connected TV households in the U.S., which translates to 71.6 percent of all households.

THIS AND THAT California Gov. Jerry Brown has signed the state’s strong new net neutrality law, but the Trump administration quickly responded with a lawsuit to try to shoot it down. U.S. Attorney General Jeff Sessions called California’s move an “extreme and illegal state law attempting to frustrate federal policy.” And the situation sets up “a legal showdown with the federal government over the future of the internet,” according to Wired... Ad Age reports that digital advertising in the political space is expected to total almost $2 billion by the time the 2018 midterms are done, up from just $71 million in 2014, according to ad research group Burrell Associates... eMarketer is forecasting U.S. social network video ad revenues to reach $11.69 billion in 2020, more than doubling the 2017 total of $5.68 billion. The biggest player in the space? It’s Facebook, by far... Ian Read is planning to step aside as Pfizer’s chief executive office. He’s been at the helm of one of the world’s biggest drug makers for eight years.

AVAILS KPRC-TV 2, the Graham Media Group owned / NBC affiliated station in Houston, TX, is seeking dynamic, enthusiastic and results-oriented Account Executives to join our team and sell KPRC-TV, MeTV Houston, Click2Houston.com and our advanced digital solutions. 3-5+ years’ of broadcast sales experience and a proven track record of selling online/mobile within agency environment preferred. Send your resume and/or cover letter to: The KPRC Sales Hiring Team: Erin Hoffman, [email protected] AND Krystan LaChance, [email protected]. No

calls please. EOE. WDSU-TV, Hearst Television owned NBC affiliate in New Orleans has an opening for a highly motivated, dynamic, and results-driven Account Executive. The AE will be responsible for selling WDSU TV, MeTV, WDSU.com, digital services, audience extension, OTT, and our specialty apps. New business development is our #1 priority. Must be able to thrive in a fast-paced, competitive, multi-media

environment. If you want work for the best and live in the perfect blend of big city excitement and outdoor adventure, click HERE to apply. WATCH. EOE Local Sales Manager: Spectrum Reach is looking for a dynamic sales leader to manage and drive revenue in the Reno, NV market. The LSM will build and direct a cohesive team of Advertising AEs, develop market approach plans, create, communicate and execute sales plans and other market initiatives to meet and exceed expected revenue goals. Three or more years management experience in Cable, TV broadcast, Radio (or other media), business to business sales, and a Bachelor’s or Master’s Degree required. Resume to: [email protected]. EOE. Sinclair Broadcast Group in San Antonio, TX, (NBC, FOX and CW affiliates) seeks a strong Director of Sales. This position requires an individual who possesses strong leadership skills who can direct a local sales team in selling new business and creating revenue streams through a multi-screen integrated approach. The candidate must have a successful track record in sales management, staff recruitment and developmental skills as well as strong leadership capabilities. CLICK HERE for more information or to apply now. EOE Local Sales Coordinator: KFSN-TV ABC30, the ABC-owned television station in Fresno, CA seeks an individual

to provide support for the sales and digital sales departments. Ideal candidate must be detail-oriented, extremely organized, and able to prioritize and multi-task. Must have excellent written and verbal communication skills and be a quick

learner, self-motivated and able to work independently as well as in a team. Candidate will also assist with new business campaigns on both KFSN-TV, ABC30.com and other digital properties. Please CLICK HERE to apply. EOE/M/F/D/V

10/2/2018

Funny Tweets

The year is 2018. There’s a 80” TV and people prefer to use a

phone to watch movies.

Page 3: ADVERTISING WEEK: VIDEO CONTINUES TO GROWDigiday reports that while subscription services might dominate the OTT video market today, free, ad-supported platforms are on the way. They’re

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

FACTORY ACTIVITY PACE EASED LAST MONTH U.S. manufacturing activity slowed in September as growth in new orders moderated sharply, but factories hired more workers, pointing to sustained strength in the sector. The Institute for Supply Management (ISM) said its index of national factory activity dropped 1.5 points to a reading of 59.8 last month from 61.3 in August, which was the highest since May 2004. A reading above 50 indicates growth in manufacturing, which accounts for about 12 percent of the U.S. economy. The ISM continued to describe demand as remaining “robust.” The ISM also noted that “the nation’s employment resource and supply chains continued to struggle, but to a lesser degree.” It said factories continued to be “overwhelmingly concerned about tariff-related activity, including how reciprocal tariffs will impact company revenue and current manufacturing locations.” The ISM’s new orders sub-index fell to a reading of 61.8 last month from 65.1 in August. A measure of export orders, however, rose last month. The survey’s employment measure rose to 58.8, the highest reading since February from 58.5 in August. A second report from the Commerce Department showed construction spending edged up 0.1 percent in August. Data for July was revised up to show construction outlays rising 0.2 percent instead of the previously reported 0.1 percent gain. Economists polled by Reuters had forecast construction spending increasing 0.4 percent in August.

MANUFACTURERS CHEER TRADE PROGRESS The Wall Street Journal says U.S. manufacturers are giving a thumbs-up to progress on a new North American trade deal that could preclude further disruption for companies that have spread their operations and supply chains across the continent in the past quarter-century. “Manufacturers are extremely encouraged that our call for a trilateral agreement between the United States, Canada and Mexico has been answered,” said Jay Timmons, chief executive of the National Association of Manufacturers, in a statement. “Today, there’s a massive amount of goods flowing across North America, meaning our countries’ economies are inextricably linked.” The preliminary agreement reached late Sunday would allow Canada to join a deal reached in late August between the U.S. and Mexico. Canada is the U.S.’s second-largest goods trading partner so far this year through July, representing 15 percent of total trade. “It is critical that all three parties be a part,” said the Motor & Equipment Manufacturers Association, which represents suppliers for the car industry, in a statement. “The potential strength and longevity of this agreement will be in the details.” Manufacturing trade groups said they would scrutinize specifics of the deal as they are released. “The devil is, as always, in the detail, but we are hopeful that the final trilateral agreement will promote free and fair trade, encourage equipment manufacturing in the United States, guarantee global supply chains and protect U.S. intellectual property,” the Association of Equipment Manufacturers said in a statement..

FOR RETAILERS, GOOD HELP IS HARD TO FIND CNBC says that while many retailers have already announced plans to hire more seasonal workers this year than in 2017, not all of those positions will likely be filled. The labor market is tighter than ever. U.S. unemployment is at a record low of 3.9 percent, and companies are under pressure to raise wages, making it more difficult and expensive to keep talent, according to a new report. Roughly 23 percent of retailers weren’t able to hire all the temporary workers they wanted for the 2017 holiday season, global consulting group Korn Ferry found. That’s

expected to get even worse this year. Korn Ferry, one of the world’s largest executive recruiters, surveyed nearly 20 major U.S. retailers representing about 1 million employees and $1.2 billion in sales last month. “I guarantee you this issue has gotten bigger and bigger,” said Korn Ferry senior partner Craig Rowley. “There are more jobs out there than there are people looking for them.” Korn Ferry found that about two-thirds

of retailers are hoping to hire at least as many seasonal workers this year as they did last year. But about 63 percent of respondents are also planning to give permanent workers more hours this year, when they aren’t able to find people to fill shorter-term roles. Target said it plans to hire 120,000 workers this holiday season, up 20 percent from a year ago. Macy’s is planning to hire 80,000 people, in line with its initial hiring plans in 2017. And Kohl’s recently said it plans to bring on about 90,000 people to work through the New Year, compared with 69,000 people in 2016, the last time the retailer provided a number for its plans. Retailers are still upbeat about the holiday season. A third of retailers are expecting their sales to increase as much as 10 percent this holiday season year over year, Korn Ferry’s survey said.

10/2/2018

FunnyTweeter.com

Show me someone who doesn’t talk back to the TV and I’ll show you someone

who doesn’t watch sports or the news.

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