BIA: AUTOMOTIVE AD SPENDING TO GROW 1.9% IN 2020 · 2019-11-22 · pressure next year. Broadcast TV...

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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 2019. The Daily News of TV Sales Friday, November 22, 2019 OUTLOOK: BIGGEST SHARE TO BROADCAST TV There’s some good news and what could best be described as a challenge for the television industry in a new forecast about how much will be spent by automakers in 2020. BIA Advisory Services forecasts the automotive category will hit $15.8 billion in local ad spending next year, which is a projected increase of 1.9 percent compared to the $15.5 billion that will be placed this year. “Automotive ad spending will go up, but not as fast as the overall ad market,” says Rick Ducey, managing director of BIA Advisory Services. “There’s some weakness in the sector and some budget cutbacks since ad spending is related to percentage of sales in many cases.” Among the various segments that make up the overall auto marketing category, BIA says most of the spending remains from the big three segments that have traditionally dominated: tier one manufacturers ($4.5B), tier two regional auto dealer associations ($4.1B) and tier three local new car dealers ($3.7B). Another $1 billion will come from the combination of three other sub- verticals, including other motor vehicle dealers, auto parts stores and gas stations. BIA expects local TV’s auto budgets will stay under pressure next year. Broadcast TV is forecast to still receive the largest share of the automotive spending pie, totaling $3.7 billion (23%) of the overall total. But BIA also expects stations to face a 6 percent decrease compared to the $3.9 billion in auto dollars they’re on track to reap this year. The culprit is a larger shift toward digital media. Traditional media outlets are expected to get roughly the same 53 percent share of the dollars. But BIA believes any of the new money coming from the sector will be earmarked for digital ads. In 2019, $6.6 billion (43%) of automotive paid media was digital. In 2020, BIA says both numbers will rise. It forecasts digital spend to rise to $7.4 billion and digital’s share to increase to 47 percent of all paid media. The shift to digital is likely to continue through 2024, the firm says. “As with other business verticals where the product is a high- consideration purchase, consumers are doing more online research including websites, social, apps and search,” says Ducey. He points to a Google-Millard Brown-Polk study which showed that of two dozen marketing touchpoints for an Auto Intender on the path to purchase, 19 are digital. “It’s how auto marketers can influence consumers, so they’re allocating media spending into digital,” says Ducey. “Also, digital provides audience targeting, attribution and other ROI tools that linear media struggle with.” One silver lining for television companies is that the fastest-growing digital ad platform on a relative basis is streaming OTT video, which is expected to see its auto ad dollars jump 18.5 percent next year. In fact, BIA says auto will make up 20 percent of OTT advertising spend next year. (Continued on Page 3) BIA: AUTOMOTIVE AD SPENDING TO GROW 1.9% IN 2020 ADVERTISER NEWS Macy’s has lowered its full-year forecast after reporting its first same-store sales decline in almost two years. The department store chain reported a 3.9 percent decline in same store sales compared to the same period in 2018. Earnings per share were seven cents above the consensus among analysts... Nordstrom has reported earnings that exceeded expectations as sales trends improved across both its full-price and off-price businesses, according to Chain Store Age. The company also raised the lower end of its full-year profit guidance, in contrast to profit forecast cuts by other department store retailers including Macy’s and Kohl’s. The retailer said its enhanced loyalty program, The Nordy Club, grew 13 percent in the quarter to more than 12 million active customers, and accounted for nearly 65 percent of sales for Q3... Starbucks will sell $40 Brewed Refill Tumblers, what it calls “the gift that keeps on giving,” that will enable customers to get free grande-size refills through the end of January as part of the deals it’s offering with the official kickoff of the holiday season, USA Today reports... Kroger is reversing course on its attempt to stay competitive by dipping into apparel, meal kits and more, so now the company is getting back to what it’s always done best: selling groceries. Kroger will slow down its plans to renovate stores — only about 20 percent underwent remodels under its “Restock Kroger” plan, The Wall Street Journal reports. The decision will keep more stores in operation after Kroger laid off hundreds of employees in October... Limited Brands, the parent company of Bath & Body Works and Victoria’s Secret, posted a 2 percent decline in same- store sales during the third quarter, below the 1 percent drop expected by analysts, CNBC reports. Victoria’s Secret posted a 7 percent drop in same-store sales, compared to a 2 percent decline in the same period last year... LVMH Moet Hennessy Louis Vitton’s bid to acquire Tiffany & Co. has reached a new stage. The French luxury goods conglomerate has raised its bid to acquire the U.S. jewelry retailer to close to $16 billion, according to Reuters. Tiffany agreed to provide LVMH with access to its books after the French company raised its bid, the report said. Tiffany rebuffed an earlier offer that valued the chain at nearly $14.5 billion, which many analysts believed was too low. The 182-year-old Tiffany, which has more than 300 stores around the world, is challenged with lackluster sales amid a slowdown in tourism and a dip in purchases by Chinese customers... Gap has reported quarterly earnings and sales that topped analysts’ lowered expectations, after the company warned earlier this month that it was anticipating dismal results, CNBC reports. Its once-strong Old Navy brand struggled to move women’s apparel off of shelves, resulting in a third-quarter same-store sales decline of 4 percent. Despite the poor performance, the company said it remains committed to its plans to spin off Old Navy into its own company, which is expected to close in the middle of 2020.

Transcript of BIA: AUTOMOTIVE AD SPENDING TO GROW 1.9% IN 2020 · 2019-11-22 · pressure next year. Broadcast TV...

Page 1: BIA: AUTOMOTIVE AD SPENDING TO GROW 1.9% IN 2020 · 2019-11-22 · pressure next year. Broadcast TV is forecast to still receive the largest share of the automotive spending pie,

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 2019.The Daily News of TV Sales Friday, November 22, 2019

OUTLOOK: BIGGEST SHARE TO BROADCAST TV There’s some good news and what could best be described as a challenge for the television industry in a new forecast about how much will be spent by automakers in 2020. BIA Advisory Services forecasts the automotive category will hit $15.8 billion in local ad spending next year, which is a projected increase of 1.9 percent compared to the $15.5 billion that will be placed this year. “Automotive ad spending will go up, but not as fast as the overall ad market,” says Rick Ducey, managing director of BIA Advisory Services. “There’s some weakness in the sector and some budget cutbacks since ad spending is related to percentage of sales in many cases.” Among the various segments that make up the overall auto marketing category, BIA says most of the spending remains from the big three segments that have traditionally dominated: tier one manufacturers ($4.5B), tier two regional auto dealer associations ($4.1B) and tier three local new car dealers ($3.7B). Another $1 billion will come from the combination of three other sub-verticals, including other motor vehicle dealers, auto parts stores and gas stations. BIA expects local TV’s auto budgets will stay under pressure next year. Broadcast TV is forecast to still receive the largest share of the automotive spending pie, totaling $3.7 billion (23%) of the overall total. But BIA also expects stations to face a 6 percent decrease compared to the $3.9 billion in auto dollars they’re on track to reap this year. The culprit is a larger shift toward digital media. Traditional media outlets are expected to get roughly the same 53 percent share of the dollars. But BIA believes any of the new money coming from the sector will be earmarked for digital ads. In 2019, $6.6 billion (43%) of automotive paid media was digital. In 2020, BIA says both numbers will rise. It forecasts digital spend to rise to $7.4 billion and digital’s share to increase to 47 percent of all paid media. The shift to digital is likely to continue through 2024, the firm says. “As with other business verticals where the product is a high-consideration purchase, consumers are doing more online research including websites, social, apps and search,” says Ducey. He points to a Google-Millard Brown-Polk study which showed that of two dozen marketing touchpoints for an Auto Intender on the path to purchase, 19 are digital. “It’s how auto marketers can influence consumers, so they’re allocating media spending into digital,” says Ducey. “Also, digital provides audience targeting, attribution and other ROI tools that linear media struggle with.” One silver lining for television companies is that the fastest-growing digital ad platform on a relative basis is streaming OTT video, which is expected to see its auto ad dollars jump 18.5 percent next year. In fact, BIA says auto will make up 20 percent of OTT advertising spend next year.

(Continued on Page 3)

BIA: AUTOMOTIVE AD SPENDING TO GROW 1.9% IN 2020ADVERTISER NEWS Macy’s has lowered its full-year forecast after reporting its first same-store sales decline in almost two years. The department store chain reported a 3.9 percent decline in same store sales compared to the same period in 2018. Earnings per share were seven cents above the consensus among analysts... Nordstrom has reported earnings that exceeded expectations as sales trends improved across both its full-price and off-price businesses, according to Chain Store Age. The company also raised the lower end

of its full-year profit guidance, in contrast to profit forecast cuts by other department store retailers including Macy’s and Kohl’s. The retailer said its enhanced loyalty program, The Nordy Club, grew 13 percent in the quarter to more than 12 million active customers, and accounted for nearly 65 percent of sales for Q3... Starbucks will sell $40

Brewed Refill Tumblers, what it calls “the gift that keeps on giving,” that will enable customers to get free grande-size refills through the end of January as part of the deals it’s offering with the official kickoff of the holiday season, USA Today reports... Kroger is reversing course on its attempt to stay competitive by dipping into apparel, meal kits and more, so now the company is getting back to what it’s always done best: selling groceries. Kroger will slow down its plans to renovate stores — only about 20 percent underwent remodels under its “Restock Kroger” plan, The Wall Street Journal reports. The decision will keep more stores in operation after Kroger laid off hundreds of employees in October... Limited Brands, the parent company of Bath & Body Works and Victoria’s Secret, posted a 2 percent decline in same-store sales during the third quarter, below the 1 percent drop expected by analysts, CNBC reports. Victoria’s Secret posted a 7 percent drop in same-store sales, compared to a 2 percent decline in the same period last year... LVMH Moet Hennessy Louis Vitton’s bid to acquire Tiffany & Co. has reached a new stage. The French luxury goods conglomerate has raised its bid to acquire the U.S. jewelry retailer to close to $16 billion, according to Reuters. Tiffany agreed to provide LVMH with access to its books after the French company raised its bid, the report said. Tiffany rebuffed an earlier offer that valued the chain at nearly $14.5 billion, which many analysts believed was too low. The 182-year-old Tiffany, which has more than 300 stores around the world, is challenged with lackluster sales amid a slowdown in tourism and a dip in purchases by Chinese customers... Gap has reported quarterly earnings and sales that topped analysts’ lowered expectations, after the company warned earlier this month that it was anticipating dismal results, CNBC reports. Its once-strong Old Navy brand struggled to move women’s apparel off of shelves, resulting in a third-quarter same-store sales decline of 4 percent. Despite the poor performance, the company said it remains committed to its plans to spin off Old Navy into its own company, which is expected to close in the middle of 2020.

Page 2: BIA: AUTOMOTIVE AD SPENDING TO GROW 1.9% IN 2020 · 2019-11-22 · pressure next year. Broadcast TV is forecast to still receive the largest share of the automotive spending pie,

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

AVAILS KMSB FOX11/KTTU My18 in Tucson, Ariz., is looking for a strong and strategic Director of Local Sales. This position is responsible for creating and executing the KMSB FOX11/KTTU My18 sales strategy to meet revenue goals across all station platforms. Bachelor’s degree in marketing, business or related field, and a minimum of 7+ years of local television sales management experience required. Please see OUR ONLINE AD to see if you qualify for this job. If so, please CLICK HERE to apply. EOE.

WAFF-TV, the NBC affiliate in Huntsville, Ala., has an immediate opening for a Digital Sales Manager. The Digital Sales Manager is responsible for achieving the station’s advertising revenue goals and works closely with the entire WAFF sales team to train, prospect, develop, close and maintain accounts. The DSM works in partnership with the sales team to identify clients’ needs and to recommend effective multi-platform marketing solutions, integrating

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THIS AND THAT PayPal is acquiring Honey, which produces browser add-ons for shopping, for $4 billion as the payment platform expands its services. Business Insider reports Honey tracks prices on 30,000 retail sites, alerts customers and provides rewards program management... WeWork is laying off 2,400 employees as it works to cut costs and downsize the business. The job reductions represent 19 percent of WeWork’s total workforce, which amounted to 12,500 employees as of June 30, according to an SEC filing... YouTube is integrating Nielsen TV data into its Reach Planner audience-coordinating tool for U.S. users and Nielsen Total Ad Ratings for campaign performance measurement. YouTube says the integration will enable brands to “compare how different distributions of spend on TV and YouTube influence the overall reach and frequency of a particular campaign,” Adweek reports.

STUDY: GEN Z, MILLENNIALS OK WITH USED GIFTS A survey from Mercari, the peer-to-peer resale app, finds 61 percent of consumers are comfortable with receiving a used item as a gift, especially if it’s unique or difficult to find. The survey, which collected responses from 1,276 consumers, found that 63 percent of women and 59 percent of men said they’re okay with receiving a used item as a gift. The survey, reported by Retail Dive, also indicated that 49 percent of Millennial and Gen Z consumers 18-34 would give secondhand gifts, but only 38 percent of consumers 55 years old and older said the same. Four percent of Americans would be displeased with a receiving a used item as a gift, and 16 percent of U.S. consumers have at least one unused gift from last holiday season in their possession, per the survey results.

ABC ANNOUNCES WINTER PREMIERE DATES ABC is reshuffling its Thursday lineup in January. After five-and-a-half seasons airing at 8 PM, Grey’s Anatomy is returning to the 9 PM berth it had occupied for eight seasons before being assigned the 8 PM anchor position in fall 2014, Deadline reports. Grey’s Anatomy spinoff Station 19, which had aired behind Grey’s Anatomy in its first two seasons, will now lead into Grey’s at 8 PM. The firefighter drama and the medical juggernaut will christen their new slots on Jan. 23 with what ABC describes as “a powerful two-hour crossover event.” With Station 19 back, sophomore drama A Million Little Things will shift from 9 PM to 10 PM while keeping its Grey’s lead-in. After the ensemble drama wraps its second season, How To Get Away With Murder will return April 2 for its final episodes and a last edition of Shondaland Thursday on ABC. ABC has slotted one winter new series premiere. Legal drama For Life, executive produced by 50 Cent, will debut Feb. 11 in the Tuesday 10 PM slot following the conclusion of Emergence’s 13-episode freshman run. The network is yet to schedule new romantic dramedy Baker and the Beauty and comedy United We Fall. Also on ABC’s winter premiere dates list — American Idol’s new season will kick off Sunday, Feb. 16, a couple of weeks earlier than last season, while The Rookie will be back from hiatus on Feb. 23, The Good Doctor on Jan. 13.

NETWORK NEWS Days of Our Lives is not going anywhere, Deadline reports. NBC has renewed its longest-running series for a 56th season, with executive producer Ken Corday delivering the news to the cast. Sources say the deal with the network is not completely done, but close. The pickup comes 10 days after word got out that the entire cast of the daytime soap had been released from their contracts... ABC has put in development Once More, a single-camera half-hour comedy. It revolves around Will Wilde, a 45-year-old sad sack of a man whose life has not turned out how he’d hoped. That is until one fateful day when Will makes a wish and wakes up to find himself back in his childhood bedroom. It’s 1999 and Will is 12 years old again, only now he has all the knowledge and memories of his 45-year-old self. With the help of narration from his adult self, Will tries to sort out how he ended up back in this position and how to best handle a second chance at life... Stargirl will be the first original DC Universe series to air on linear television. The upcoming superhero drama has landed an exclusive linear window on The CW as well as play on the network’s non-linear platforms following its debut on DC Universe digital subscription service. The CW will broadcast each episode in primetime the day after it premieres on the DC Universe streaming service. The DC series, starring Brec Bassinger in the title role, is set to make its premiere on DC Universe in second quarter 2020, with new episodes released weekly. A premiere date will be announced later, along with scheduling information which night the show will air on the CW.

11/22/2019

David Spade

Kanye West is appearing at Joel Osteen’s megachurch service, and the tickets are

free. But it’s a thousand bucks to leave early.

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

AMBASSADOR BOOSTS IMPEACHMENT RATINGS Daytime TV coverage of Day 4 of the impeachment hearings brought by Democrats against President Trump rose a collective 8 percent on Wednesday versus the previous day among the major three 24-hour cable TV news networks. The coverage, which featured compelling testimony of Gordon Sondland, U.S. Ambassador to the European Union, posted a Nielsen-measured preliminary collective 6.54 million viewers versus 6.06 million on Tuesday. All three cable TV news networks posted individual gains Wednesday versus the previous day: Fox News Channel,

2.51 million (up from 2.25M); MSNBC, at 2.36 million (from 2.25M); and CNN, 1.68 million (from 1.56M). Broadcast networks had a mixed picture: ABC was at 1.59 million (9 AM to 3:59 PM), down from 1.9 million the day before (9 AM to 2 PM); NBC, 1.55 million (9 AM to 4 PM), off its 1.7 million (9 AM to 2 PM); and CBS, 1.78 million (9 AM to 2 PM), rising from 1.75 million (9 AM to 12:21 PM). Looking at all six networks, there was

a total of 11.45 million daytime viewers, versus on Tuesday (Day 3) — 11.43 million viewers for similar daytime period 9 AM to 1:45 PM for cable networks and 9 AM to 2 PM for the broadcast networks.

BIA: AUTO AD SPENDING TO GROW 1.9% IN 2020(Continued from Page 1) “The biggest digital ad format is digital video,” says Ducey. “Auto marketers value video but like the audience targeting and attribution that they get on digital ad platforms.” But he also notes TV companies aren’t sitting idly by and watching those dollars evaporate. “Traditional media have been developing and rolling out new competitive solutions to challenge digital’s current and growing dominance,” Ducey says. Double-digit growth is also expected in 2020 for mobile (11.3%), email (11.3%) and digital radio (10.3%) advertising, according to BIA.

11/22/2019

FunnyTweeter.com

If you didn’t want to get bitten you

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SURVEY: FURNITURE BOUGHT NEW, IN-STORE A recent survey from Improvenet, a site that offers home improvement resources, helps shed some light on how Americans furnish and decorate their homes. As part of its report, Improvenet studied trends in the American Consumer Expenditure Survey, which is released annually by the U.S. Bureau of Labor Statistics. It specifically looked at spending habits across 20 major cities to see where people spend the most on household furnishings. The study revealed that most Americans (84%) buy their furniture new, and 74 percent purchase furnishings in-person as opposed to buying online. In fact, most said they had to see the item in person before specifically purchasing sofas, mattresses, recliners and rugs, as well as dining tables and chairs. Consumers will also spend more on sofas, mattresses, TVs, refrigerators and dining sets, according to the survey, which was reported by Furniture Today. The most common source of design inspiration comes from in-store displays at 38 percent, followed by social media (30%), TV shows (15%), friends and family (12%) and interior designers (5%). Most Americans (77%) say at least some of their home is furnished and decorated to their satisfaction. Residents in Minneapolis/St. Paul spend more, on average, for all of their home furnishings, coming in at $9,322; people in Tampa, Fla., spent the least at just over $4,000.

DISNEY: HULU REACHES 29M PAID SUBSCRIBERS Disney appears to have slightly revised the paid subscriber totals it provided for Hulu earlier this month when it announced its fiscal fourth-quarter earnings, FierceVideo reports. On Nov. 7, Disney CFO Christine McCarthy said Hulu ended the company’s Q4 on Sept. 28 with about 28.5 million paid subscribers. But in a new SEC filing, the company said Hulu ended the quarter with approximately 29 million. When Hulu reported subscriber numbers in May, it said it had 28 million total subscribers and 26.8 million paid subscribers. In early April during an investor day for its Disney+, Disney said Hulu was at 25 million subscribers (23 million paid). It’s unclear how many Hulu subscribers are taking up live TV packages with their subscriptions, but recent analyst estimates suggest Hulu with Live TV is now the biggest U.S. virtual MVPD in terms of subscribers. According to estimates from MoffettNathanson, Hulu now has 2.7 million live TV subscribers, putting it just slightly ahead of Dish Network’s Sling TV.

NEXSTAR RENEWS AFFILIATION DEALS WITH NBC Nexstar Media has agreed to renew affiliation agreements with the NBC Television Network, Broadcasting & Cable reports. The new four-year deals cover 21 stations that reach about 12.5 million homes, representing 11.4 percent of U.S. TV households. Two of the stations were recently acquired by Nexstar and three are owned by Mission Broadcasting. The Mission stations are in markets where Nexstar also owns stations. Nexstar provides services to those Mission stations. The previous affiliate deals were set to expire in December. Financial terms of the new agreements weren’t disclosed.