BIA-KELSEY FORECASTS 5.2% LOCAL AD GROWTH IN 2018The Daily News of TV Sales PAGE 3 FB STATS SHOW...

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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 2017. The Daily News of TV Sales Wednesday, December 6, 2017 BIA-KELSEY FORECASTS 5.2% LOCAL AD GROWTH IN 2018 TRADITIONAL WILL POCKET MOST AD DOLLARS. A list of ingredients combining a robust economy, a competitive political landscape, and significant growth in mobile and social media bake into a sweet outlook for local media’s 2018. That’s according to BIA/Kelsey which forecasts local television revenue will hit $20.8 billion next year up from an estimated $19.3 billion this year. That would give local stations a 13.8% share of the $140.9 billion that will be spent on local advertising in the coming year. “The strong economy and the expectation of highly-competitive statewide political races next year reinforce our outlook that local advertising revenue will show strong growth in 2018, in fact, higher than we’ve seen for five years,” BIA/Kelsey chief economist Mark Fratrik says. “Combine these factors with the strength of traditional and online media and the revenue landscape for next year looks robust.” Local TV stations’ effort to monetize online video is paying big dividends. BIA/Kelsey forecasts local online video revenue will surpass $2 billion next year with more than half that allocated to mobile viewers. While OTT services and online rivals are growing, Fratrik says local TV will continue to be largest player in the local video advertising market with a more than 60% market share. The least surprising story in the annual outlook is just how large mobile has become. BIA/Kelsey says it will overtake radio as the third-largest advertising medium in 2018 representing 12.6% of local advertising spending—or $19 billion. It’s only expected to continue growing. Fratrik projects nearly one out of every five dollars will be spent on mobile advertising within the next five years. Adoption of mobile local advertising tactics such as geo-fencing, click-to-call and click-to-map will also continue to grow among national advertisers that are attracted to the increasingly available and currently undervalued mobile local ad inventory. The evolution of media habits also means that significant ad spending growth is likely next year on native social media advertising—especially Snapchat and Instagram. “As mobile and social local channels continue to deliver high performance results for advertisers, advertising dollars will flow to these areas,” Fratrik predicts. BIA/Kelsey says social media ad revenues from mobile (not including tablets) now represent about 71% of total social ad spending and will grow to nearly 80% by 2022 as more of the user activity shifts away from desktops. For sales reps looking to target dollars outside the TV business, BIA/Kelsey says direct mail continues to be the deepest pool in which to swim. One-quarter of the local advertising pie, or $38.5 billion, is forecast to go into snail- mail next year. With response rates of 3-5% and a return on investment comparable to some digital media, Fratrik says it continues to appeal to some advertisers. And while radio slips to fourth place it’s still forecast to capture $15.7 billion from the local ad market. ADVERTISER NEWS Beginning Jan. 4, McDonald’s will launch its $1 $2 $3 Dollar Menu nationwide, replacing its McPick 2 Menu — the latest major step as it seeks to win back customers lost to competitors in recent years. McDonald’s $1 $2 $3 Dollar Menu is the latest in the company’s evolving value proposition for budget-minded customers. The Dollar Menu was launched in 2002....Gap Inc.’s Banana Republic and Gap brands are swiftly losing customers to other brands, according to a report from data management and analytics firm 1010data emailed to Retail Dive. From October 2016 to September 2017, Banana Republic lost 58% of shoppers who had shopped at least once between October 2015 to September 2016, 45% more than in the trailing year, according to the report. Similarly, Gap lost 54% of shoppers in the past 12 months, up from 40% in the prior year .... Credit ratings agency S&P downgraded Guitar Center on what analysts saw as a possible debt restructuring that they “would view as tantamount to a default.” Guitar Center has 260 U.S. Stores... Nestlé SA has agreed to buy Atrium Innovations Inc., a Canadian vitamin maker, for $2.3 billion, including the assumption of debt—expanding its range of consumer-health offerings as sales slow for packaged-food staples such as TV dinners and chocolate-powdered drinks. Atrium owns the Garden of Life and Pure Encapsulations supplement brands.... The judge overseeing the Toys R Us bankruptcy case ruled Tuesday that the insolvent retailer can pay its 17 top executives $14 million in incentive bonuses.... Pizza Hut is testing beer delivery in Arizona, and wine delivery will be available in January. Phoenix customers will be able to order six packs of Budweiser, Bud Light, Shocktop and a local craft beer.

Transcript of BIA-KELSEY FORECASTS 5.2% LOCAL AD GROWTH IN 2018The Daily News of TV Sales PAGE 3 FB STATS SHOW...

Page 1: BIA-KELSEY FORECASTS 5.2% LOCAL AD GROWTH IN 2018The Daily News of TV Sales PAGE 3 FB STATS SHOW VIDEO RULES A six-month study of content posted by broadcasters and journalists on

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 2017.The Daily News of TV Sales Wednesday, December 6, 2017

BIA-KELSEY FORECASTS 5.2% LOCAL AD GROWTH IN 2018TRADITIONAL WILL POCKET MOST AD DOLLARS. A list of ingredients combining a robust economy, a competitive political landscape, and significant growth in mobile and social media bake into a sweet outlook for local media’s 2018. That’s according to BIA/Kelsey which forecasts local television revenue will hit $20.8 billion next year up from an estimated $19.3 billion this year. That would give local stations a 13.8% share of the $140.9 billion that will be spent on local advertising in the coming year. “The strong economy and the expectation of highly-competitive statewide political races next year reinforce our outlook that local advertising revenue will show strong growth in 2018, in fact, higher than we’ve seen for five years,” BIA/Kelsey chief economist Mark Fratrik says. “Combine these factors with the strength of traditional and online media and the revenue landscape for next year looks robust.” Local TV stations’ effort to monetize online video is paying big dividends. BIA/Kelsey forecasts local online video revenue will surpass $2 billion next year with more than half that allocated to mobile viewers. While OTT services and online rivals are growing, Fratrik says local TV will continue to be largest player in the local video advertising market with a more than 60% market share. The least surprising story in the annual outlook is just how large mobile has become. BIA/Kelsey says it will overtake radio as the third-largest advertising medium in 2018 representing 12.6% of local advertising spending—or $19 billion. It’s only expected to continue growing. Fratrik projects nearly one out of every five dollars will be spent on mobile advertising within the next five years. Adoption of mobile local advertising tactics such as geo-fencing, click-to-call and click-to-map will also continue to grow among national advertisers that are attracted to the increasingly available and currently undervalued mobile local ad inventory. The evolution of media habits also means that significant ad spending growth is likely next year on native social media advertising—especially Snapchat and Instagram. “As mobile and social local channels continue to deliver high performance results for advertisers, advertising dollars will flow to these areas,” Fratrik predicts. BIA/Kelsey says social media ad revenues from mobile (not including tablets) now represent about 71% of total social ad spending and will grow to nearly 80% by 2022 as more of the user activity shifts away from desktops. For sales reps looking to target dollars outside the TV business, BIA/Kelsey says direct mail continues to be the deepest pool in which to swim. One-quarter of the local advertising pie, or $38.5 billion, is forecast to go into snail-mail next year. With response rates of 3-5% and a return on investment comparable to some digital media, Fratrik says it continues to appeal to some advertisers. And while radio slips to fourth place it’s still forecast to capture $15.7 billion from the local ad market.

ADVERTISER NEWS Beginning Jan. 4, McDonald’s will launch its $1 $2 $3 Dollar Menu nationwide, replacing its McPick 2 Menu — the latest major step as it seeks to win back customers lost to competitors in recent years. McDonald’s $1 $2 $3 Dollar Menu is the latest in the company’s evolving value proposition for budget-minded customers. The Dollar Menu was launched in 2002....Gap Inc.’s Banana Republic and Gap brands are swiftly losing customers to

other brands, according to a report from data management and analytics firm 1010data emailed to Retail Dive. From October 2016 to September 2017, Banana Republic lost 58% of shoppers who had shopped at least once between October 2015 to September 2016, 45% more than in the trailing year, according to the report. Similarly, Gap lost

54% of shoppers in the past 12 months, up from 40% in the prior year.... Credit ratings agency S&P downgraded Guitar Center on what analysts saw as a possible debt restructuring that they “would view as tantamount to a default.” Guitar Center has 260 U.S. Stores... Nestlé SA has agreed to buy Atrium Innovations Inc., a Canadian vitamin maker, for $2.3 billion, including the assumption of debt—expanding its range of consumer-health offerings as sales slow for packaged-food staples such as TV dinners and chocolate-powdered drinks. Atrium owns the Garden of Life and Pure Encapsulations supplement brands.... The judge overseeing the Toys R Us bankruptcy case ruled Tuesday that the insolvent retailer can pay its 17 top executives $14 million in incentive bonuses.... Pizza Hut is testing beer delivery in Arizona, and wine delivery will be available in January. Phoenix customers will be able to order six packs of Budweiser, Bud Light, Shocktop and a local craft beer.

Page 2: BIA-KELSEY FORECASTS 5.2% LOCAL AD GROWTH IN 2018The Daily News of TV Sales PAGE 3 FB STATS SHOW VIDEO RULES A six-month study of content posted by broadcasters and journalists on

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

NETWORK NEWS Suspended ABC News reporter Brian Ross will no longer cover stories involving President Donald Trump following his erroneous report last Friday on former national security adviser Michael Flynn. The network has confirmed the order by ABC News President James Goldston, who expressed his anger over the error on an internal phone call that was leaked to CNN....ABC and actor Alec Baldwin are expanding their relationship and are working on a new project based on Baldwin’s WNYC radio show/podcast called Here’s the Thing with Alec Baldwin. Sources say the deal has been in the works for weeks with production scheduled to start next week. It’s unclear where Baldwin’s new talk show would air. ABC already has a late-night show in place with Jimmy Kimmel Live. The network’s daytime lineup includes The View and The Chew, with Good Morning America anchoring the early morning……Season 2 of Univision’s critically-acclaimed series El Chapo concluded Sunday night and reached 3.6 million total viewers, according to the Spanish-language network. El Chapo posted 611,000 viewers in adults 18-49, and 245,000 in adults 18-34. The program made Univision the No. 1 Spanish-language network for the night in the 8-10 PM (ET) time slot. El Chapo’s average viewership over its first two seasons was 1.2 million total viewers, 601,000 adults 18-49 and 251,000 adults 18-34……ABC’s Grey’s Anatomy and Modern Family both broke into the top ten of the Live +7 key demo ratings during the eighth week of the 2017-2018 broadcast season, which began on November 13th. Nielsen shows that Grey’s Anatomy jumped from a 1.8 adult 18-49 rating to a 3.3 for an increase of 83%, while Modern Family went from a 1.7 to a 3.1 demo rating for an 82% increase. The network’ freshman drama The Good Doctor, CBS’ The Big Bang Theory, and NBC’s This Is Us held on to their top spots in both demos. ABC took 9 of the top 25 spots in the key demos, while CBS claimed 13……CBS will commemorate 50 seasons of the news magazine 60 Minutes with a retrospective show airing this Sunday in the normal time slot of 7 PM (ET). The network says the commemorative broadcast “relives the big moments, the famous people and the faraway places from five decades of America’s favorite news magazine.” The retrospective will include excerpts from Ed Bradley’s interview of Mick Jagger, the famous post-Super Bowl appearance by Bill and Hillary Clinton, to interviews with world leaders, including Barack Obama, Bashar al-Assad, and the Ayatollah Khomeini. Celebrity interviews with Johnny Carson, Muhammad Ali, and Beyoncé will also be revisited. “I think we’re more current now than we were in past years, but the values and standards that we live by are the same as they were on the very first broadcast that went on the air in 1968,” said 60 Minutes executive producer Jeff Fager……NBC’s primetime news magazine Dateline outperformed its ABC competitor 20/20 by almost 3 million total viewers in the November sweeps period. Dateline averaged 5 million total viewers while 20/20 averaged 2.2 million total viewers.

AVAILS 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. Send resume

to [email protected]. EOE. 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. WBAL-TV, Baltimore MD, a Hearst Television station seeks our next Super Star NSM. We’re looking for a passionate and energetic NSM who loves a challenge, sets the bar high and enjoys setting sales records! The ideal candidate will work with great speed, efficiency and organization to complement our strong management team. We are looking for television sales experience and the ability to sell multiple platforms. We offer a competitive salary and the opportunity to grow and be a part of a winning team! CLICK HERE to apply 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. The #1 television station & the #1 local digital platform in Columbia, SC, has an opening for an experienced Multi-Platform Consultant with 3-5 years sales experience. Excellent customer service is our benchmark and you will have an opportunity to work with one of the largest support staffs in the country to grow your business. You must have a proven track record of negotiating and developing business in broadcast sales and digital sales. Qualified applicants, please APPLY ONLINE and attach cover letter and resume. No calls please. EOE-M/F/D/V

CLICK HERE to place a job in Spots n Dots!

12/6/2017

Conan O’Brien

A new book claims that for Donald Trump, the four basic food groups are McDonald’s,

KFC, pizza, and Diet Coke. When they heard, the American people were outraged and said,

“DIET Coke?”

Page 3: BIA-KELSEY FORECASTS 5.2% LOCAL AD GROWTH IN 2018The Daily News of TV Sales PAGE 3 FB STATS SHOW VIDEO RULES A six-month study of content posted by broadcasters and journalists on

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

FB STATS SHOW VIDEO RULES A six-month study of content posted by broadcasters and journalists on Facebook, and found that video is king (or queen). The study, conducted by Share Rocket, found that video is the most engaging content on the social platform, with the average video post having at least 160 engagements per post more than the next-closest form of post (a link). Link posts have been growing, seeing around 255 to 276 engagements per post, and even photo posts have seen an increase in recent months. The study found that native video posts “drive nearly double the engagement per post than the next-closest post type,” and therefore could be an important content and adver-tising strategy.

THIS AND THAT comScore has signed an agreement with the Fox Networks Group (FNG) that expands its existing relationship to include linear TV ratings measurement and comScore’s suite of Advanced Audiences segmentation, sourced from partnerships with various consumer data reporting companies. FNG’s sports channels FS1 and FS2, along with FNG’s FOX, FX and National Geographic channels are covered under the agreement....FierceCable says Disney is reportedly moving fast on a deal for some 21st Century Fox assets, and a transaction could be announced as soon as next week....Consumer Virtual Reality will grow from $1.6 billion last year to $11.5 billion in 2021, according to a new VR and AR revenue forecast by Artillry Intelligence. Consumer Augmented Reality is projected to grow from $975 million last year to $15.8 billion within four years.... Technology specialist Imagine Communications has named Tom Cotney CEO of the company, effective immediately. Current CEO Charlie Vogt is joining The Gores Group as a Senior Advisor to continue to drive M&A and business development activities at Imagine.

NETS OUT TO PROVE VALUE OF ADVERTISING AdAge.com says TV networks are moving forward with developing a standardized method for proving commercials drive business results. Code-named Thor, the methodology developed by the analytics company Data Plus Math will be tested by A&E Networks, AMC Networks, Fox News, Disney-ABC TV Group and Discovery Communications among others. Social Media has long been able to prove last click attribution, meaning someone saw their ad and then took an action. Since watching a TV commercial typically happens earlier in the funnel, networks have had trouble proving commercial exposure leads a consumer to take action. “Facebook and Google have been taking credit for a lot of the hard work we do upstream in educating people on brands,” says Mel Berning, chief revenue officer, A&E Networks. With Thor, the goal is to provide new common lift metrics across traditional linear TV as well as on-demand and digital platforms. Within the next few weeks, participating networks will be taking the model out to marketers and run attribution analytics for a variety of ad categories to see what works.

SURGE PRICING COMING TO YOUTUBE YouTube is changing their advertising structure, and will be rolling out surge pricing to large advertisers next year. YouTube is owned by Google, with ads purchased through the same platform as Search and Display. According to the Wall Street Journal, the social platform wrote to ad buyers and vendors to explain the new pricing, which could increase rates by as much as 20% in 2018. YouTube is also working to get rid of questionable content, which for advertisers includes processes to control where your ads are shown. YouTube may be explaining the new

pricing as a guarantee of this control - to “apply stricter criteria [and] conduct more manual curation,” of content on the channel, YouTube CEO Susan Wojcicki explained in a blog post.

#SEE HER Fox Sports has joined an agreement with the Association of National Advertisers to “increase the accurate portrayal of women and girls in media” by 20% in the next two years, according to Variety. The initiative will be called

#SeeHer, and will be featured in programming like NFL, college football, and college basketball. Fox Sports will be using many of their analysts for the ads. “We are pleased to join forces with the ANA to encourage a different type of conversation to take place during our sports programs. Research shows that girls who are encouraged by male role models to pursue STEM (science, technology, engineering, and math) are more likely to do so, and the Celebrate Her ads are an important way to galvanize those discussions,” said Sarah Tourville, senior vice president of brand activation at Fox Sports. “Fox Sports is proud to be home to many of the biggest sports champions in the world, and we are equally proud to play a role in championing the future success of young women.” Fox Sports’ agreement follows a similar one signed by CBS, whose goal is to change “how the media represents women and young girls.”

12/6/2017

One Liners

I bought my son a refrigerator for Christmas. – I can’t wait

to see his face light up when he opens it.

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