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sales@spotsndots.com Copyright 2017.The Daily News of TV Sales Friday, December 8, 2017

LOCAL TV GROUPS GETTING INTO OTT SALES BUSINESSMORE ARE WATCHING, MONEY WILL FOLLOW As 2017 draws to a close, one of the things it’ll be remembered for in the television industry is it’s the year that over-the-top (OTT) streaming video services moved into the mainstream. While the reach of web-based video isn’t anywhere near what broadcast or cable TV captures today, eMarketer estimates the number of OTT video service users will grow to 193.3 million this year. And analysts project that figure will increase to 209.5 million—or three-quarters of internet users—by 2021. What’s driving the growth is the number of connected TVs in home. It’s estimated 61.5% of OTT service users will access programming through a connected TV this year. But as more Americans replace their televisions that number is projected to increase to 67.9% in 2021. There’s also more choice in programming providers. YouTube may be the most-used OTT service today, but consumers are also subscribing to services such as Amazon Video, Hulu and Netflix at a faster clip. And there’s more variety in terms of hardware. Nearly half (48.3%) of OTT viewers are using the smart TV set already in their home, while the other half are buying devices sold by Amazon, Google and Roku. To follow the eyeballs, analysts expect more marketers will invest in ad-supported OTT services, some of which are divisions of the broadcast networks themselves. “Traditional TV advertisers are eyeing connected TV and OTT as a means of recouping audiences lost to digital streaming,” a new report from eMarketer says, adding, “Buyers must navigate differences in how audiences are guaranteed, targeted and measured.” Today programmatic buying of such inventory is an exception, but the firm expects it’ll ramp up during the next 12 to 24 months. “Digital video advertisers are turning to connected TV and OTT to extend their audience reach even further in the digital realm,” the report says. It doesn’t mean local broadcasters are on the sidelines. Tegna formed the OTT local advertising network Premion last year, giving advertisers a one-stop way to buy ads on programs across an array of OTT services. Tegna says Premion executed more than 6,500 campaigns, serving 800 clients in 195 geographic markets during Q3. That’s far beyond the 38 markets where Tenga owns 46 TV stations. “It has quickly become a must-buy for our advertisers trying to reach cord-cutters,” CEO Dave Lougee told investors last month. Premion revenue for jumped 92% during third quarter and Tegna expects it’ll have nearly $30 million worth of OTT-related billings in 2017.

ADVERTISER NEWS General Motors plans to use carbon fiber for the beds of its redesigned full-size pickups to improve performance and reduce weight, Automotive News has learned. The truck beds could mark GM’s first use of carbon fiber reinforced thermoplastic, a product the automaker is co-developing with Japan-based Teijin Limited in 2011. The carbon fiber bed is expected to be among a significant number of changes in materials for the Chevrolet Silverado and GMC

Sierra pickups to meet stricter fuel economy regulations and better position them against crosstown rival and truck leader, Ford...Fifteen cars and SUVs have earned the highest honors from the Insurance Institute for Highway Safety despite stiffened requirements for 2018. Six Hyundai and four Subaru vehicles attained the highest safety rating the nonprofit organization can bestow, while Mercedes-

Benz has two, and Toyota Motor Co., BMW and Ford Motor Co. have one each....The Denver Post reports that the nation’s biggest health insurer is spending nearly $5 billion to buy hundreds of clinics, just three days after rival Aetna announced its deal with CVS. UnitedHealth Group is buying DaVita Medical Group in a deal that extends the reach of its Optum health care services business to several more states....Home Depot says it will roughly double the investment spending in the next three years to some $11.1 billion, with the money going to faster check-out for customers, flexible scheduling and competitive wages for store workers, turning over merchandise more quickly to keep things fresh and making its supply chain even more efficient. Fortune.com says the goal is to adapt to how consumers shop, improve in-store service and lower costs for when the market turns eventually....Canadian apparel retailer Roots plans for an extensive brick-and-mortar expansion. Roots is mulling 30 “high potential” locations in North America, with plans to open 10 to 14 in the U.S. by the end of 2019. The’ve already signed four new U.S. leases, including in Boston and Washington, D.C., for next year.

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

NETWORK NEWS CBS All Access, the on-demand subscription service of the network has given an official order to the Twilight Zone reboot from Jordan Peele (Get Out) and Simon Kinberg (X-Men). The number of episodes and the premiere dates were not made available. Peele, Kinberg, and showrunner Marco Ramirez (The Defenders, Daredevil) will executive produce the project and collaborate on the premiere episode. CBS Television Studios will produce the series in association with Peele’s Monkeypaw Productions……An article in The Wrap points out that all five of the over-the-air English-language networks are down again in Nielsen’s TV ratings. However, some are retaining fall 2016 numbers better than others. NBC is the best-rated broadcast channel of the group by averaging a 2.4 adult 18-49 rating, and that’s before the 2018 Winters Olympic games and the Super Bowl, airing on NBC in February of next year. The average rating for NBC is still down 8% season-to-date over last year. As for the other networks, CBS has a season-to-date average of a 1.8 rating, down 14% season-to-date, while ABC is averaging a 1.6, a 16% decrease. The average for the Fox network is a 1.9 rating, down 17% over last year. The younger-skewing CW network has a season-to-date average rating of 0.6, minus 14% compared to last year. The numbers include all primetime programs, including sports and news……Fox Networks Group has announced the promotion of Brian Sullivan to the position of president and chief operating officer. He is replacing Randy Freer, who left the position in October to take over the CEO job at Hulu. Sullivan has served as president of Fox Network’s Digital Consumer Group since 2015. In his new role, Sullivan will oversee revenue and distribution for the Fox Television Group, FX, Fox Sports, and National Geographic Partners. He will also continue to lead the Digital Consumer Group. Sullivan will report to Peter Rice, president of 21st Century Fox and CEO and chairman of Fox Networks Group……Wednesday’s installment of the Fox music drama Empire was up in the Nielsen overnights compared to last week’s series low. The adult 18-49 rating for Empire was a 1.8 with a total audience number of 5.7 million viewers, up from a 1.7 rating and 5 million total viewers for last week’s episode. Empire’s lead-out, Star was even with last week with a 1.2 rating and 4 million total viewers. For the night, CBS finished first in total viewers among the networks with 7 million, NBC was second with 5.8 million viewers and Fox was third with 4.9 million. ABC delivered 4.6 million viewers. The CW managed 1.1 million viewers to finish in fifth place……Disgraced Today Show anchor Matt Lauer may be gone from the small screen, but he’s still appearing on the big screen. Lauer, fired by NBC on November 29th following complaints of inappropriate sexual behavior, still appears in Lady Bird, the Bush-era coming-of-age feature film, in a scene where Saoirse Ronan watches Lauer reporting on the war in Afghanistan. The upcoming film I, Tonya has footage of Lauer reporting on the 1994 attack on figure skater Nancy Kerrigan included in a montage sequence.

AVAILS WAVY-TV10 and WVBT FOX43 in the Norfolk, VA, market seeks a results-driven Account Executive. This experienced sales professional must have a winning attitude and a desire to succeed! Responsibilities include managing agency business, new business generation, client relationship building, and presentation to a diverse customer base. The position requires excellent communication, customer service, and time management skills. The ideal candidate will be a people person who is responsible for developing large-scale new business

clients and growing digital revenue! CLICK HERE for more info or to apply now. EOE. WROC-TV 8, a CBS Affiliate, seeks a Chief Engineer to oversee the day to day operations of the Engineering Department and is responsible for the maintenance of all broadcast technology and equipment at the station and transmitter sites. Assigns projects to staff and verifies that deadlines are being met. Bachelor’s Degree in

Engineering, Communications, or equivalent combination of education and work related experience preferred. CLICK HERE for more info or to apply now. EOE. WTOG-TV, CW44 in Tampa/St. Petersburg is looking for an experienced salesperson to sell multi-platform media and marketing solutions. The ideal candidate has a proven track record of success in online and offline media sales with a demonstrable record of successful prospecting, closing and retaining new advertisers. 4+ years of media sales experience, including digital experience. CLICK HERE to apply, and be prepared to submit a resume. And please pass this along if you know a qualified candidate who should apply! WTOG is an EOE. Hot market? FOR SURE! Orlando, Florida. Sales Manager opening at WKMG News 6. Lead Local and National AE’s to perform at the highest level by getting results for all of our partners. Create, implement and execute client campaigns that will deliver trackable results. Motivate sellers, hold people accountable, manage inventory and utilize all media assets daily. Work closely with DOS and the entire sales team to exceed budgets and outperform the market. Please send resume to jhess@wkmg.com. EOE.

CLICK HERE to place a job in Spots n Dots!

THIS AND THAT Evian now spends 80 percent of its ad budget on digital, primarily social media and search, which one executive says are most cost-efficient in reaching the coveted millennial set that is likelier to reach for water than soda.... KNXV – ABC15 in Phoenix is one of only 16 news organizations to win a 2018 Alfred I. duPont-Columbia University Award, among the most prestigious honors in journalism. The win is for the Cash for Compliance series that exposed an audacious group of litigators who exploited the Americans with Disabilities Act (ADA) for profit.

12/8/2017

Jimmy Fallon

Vladimir Putin just announced he’s seeking

re-election. Really? Who’s running against him? That’s like running for class president when

you’re home-schooled.

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

DIGITAL IS BIG, MAYBE NOT PROFITABLE Digital content may be in demand, but publishers are still struggling to make those platforms profitable. A report by Reuters Institute found that many newspapers and some digital publishers have been succeeding using the pay model, but broadcasters haven’t largely embraced that practice. Many broadcast digital operations but have instead been staying online only because of offline revenues, per Nieman Lab. But digital-only digital-only publishers (like BuzzFeed, HuffPost, Mashable) don’t have the benefit of offline revenue, and those who do not use pay models have been staying profitable only through the use of digital advertising. Some of the challenges digital media across all platforms are facing include: low average revenues per user, which has been enhanced with the acceleration of move from desktop to mobile; the rise of programmatic advertising, which tends to bring in lower CPMs; and competition from larger technology companies like Google and Facebook. The report also found that many digital-only news outlets are succeeding because they are still in the investment phase, but those investors are starting to question why the websites are being run without the goal of making a profit.

INCLUSION, DIVSERSITY, RULE YOUTUBE TOP 10 YouTube’s most-watched ads from 2017 showed some trends, including longer ads and advertisements that had a cause being watched more. According to AdAge, seven out of the top 10 ads from 2017 featured some form of inclusion, diversity, or empowerment. They were also, on average, twice as long as the top 10 ads in 2016. The top video had 150 million views, and was for Samsung, “We’ll Take Care Of You, Wherever You Are, “ was from Indian company Chelli. The rest of the list included: 2. Clash of Clans, “The Last Second,” 3. Oreo, “Ping Pong Trick Shots” by Dude Perfect (YouTube Chanel), 4. Dior, “The New Eau de Parfum” (“Miss Dior”), 5. Budweiser, “Born the Hard Way,” by Anomaly, 6. Kia, “Hero’s Journey,” by David & Goliath, 7. Adidas, “Original Is Never Finished” by Johannes Leonardo, 8. Apple, “The Rock x Siri Dominate the Day” by Hungry Man (production company), 9. Levi’s, “Circles” by FCB West, and 10. Mr. Clean, “Cleaner of Your Dreams” by Leo Burnett.

LOCAL TV GROUPS GETTING INTO OTT (Continued from page 1) What’s it mean for cable and satellite viewers? The number of cord-cutters is forecast to hit 22.2 million this year according to eMarketer. That’s one-third more than dropped traditional pay TV services last year. The firm estimates total ad spending for all forms of television will hit $71.65 billion this year, but it says cord-cutting is a big reason why its forecast calls for TV’s share of ad spending to slide to 34.9%. That’s down from 36.6% in 2016. And by 2021, eMarketer believes TV’s share will slip below 30%.

TV MIGHT BE SHORTED ON RATINGS TV networks have not been getting full credit for programs viewed through streaming services, according to the Wall Street Journal. Nielsen acknowledged that, while they track content through over-the-air broadcasting, cable, and satellite, they have not been including viewers who are streaming their content. The reason for the lack of tracking by Nielsen is their 25-second rule — if someone streams a program more than 25 second behind its live air time, it is no longer considered a live viewer.

“The industry has seen a growing increase in consumer viewing of Live content streamed to their TV sets,” a Nielsen representative told the Wall Street Journal. “However, we found that when Live content is streamed to the TV set, delivery takes longer than that of traditional cable and over-the-air delivery.” Ads that are purchased with both live and delayed ratings should not be impacted, as the streaming views will still be included in those numbers. But for

programs sold for their live content, like sports, the numbers make a difference. “As the media landscape has shifted, there needs to be an accommodation to accurately measure live audiences watching Sunday Night Football and other live events via virtual MVPDs,” said Joe Brown, senior vice president of research at NBC Sports Group. “There is a significant undercounting due to latency, which could cost broadcasters tens of millions of dollars on the NFL alone over the course of the 2017 season.” Nielsen is working to re-define a live user based on evolving technology, and might change the 25 second rule to a three-minute rule.

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12/8/2017

Jim Gaffigan

How kids feel about snow days is the exact opposite of how parents feel about

snow days!

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