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sales@spotsndots.com Copyright 2018.The Daily News of TV Sales Friday, May 31, 2019

NEW INITIATIVE BRINGING BLOCKCHAIN TO TV Using data to buy television isn’t new, but the sheer number of data points available to planners, as well as an explosion of media outlets to consider, is reshaping how data-driven TV buys are made. Blockgraph, the industry initiative spearheaded by Comcast’s FreeWheel, aims to bring blockchain technology to the TV industry to allow data to play a bigger role in buying and selling decisions. An eye-glazing term, blockchain is essentially a collection of information that’s gathered through a network that sits on top of the internet. In the case of how it will be used in television, Blockgraph will connect data from across the TV ecosystem. FreeWheel says that will enable TV to pair its current strengths — including efficient reach and high engagement — with the breadth and depth of data insights necessary for audience-based, data- driven TV buying. While today it’s all a bit wonky, the reality is more TV ad spending is data-enabled, whether through the use of data to improve planning, targeting or analyze attribution. And the numbers are growing. A survey of more than 150 advertisers and agencies conducted by Advertiser Perceptions for FreeWheel shows data-driven TV has grown at a 42 percent three-year compound annual growth rate. In 2018 a fifth of TV buying was data-enabled. This year, 29 percent will be, and the survey says next year that number will hit 40 percent. “Data usage has now become the norm for advertisers who are looking for better, more accurate targeting of relevant prospects and customers, at the desired frequency, with the ability to measure business outcomes,” says a new whitepaper from FreeWheel explaining where it sees things heading. Although data usage has been most easily adapted to digital media, the paper says the “rollout in the TV ecosystem is now underway and critical to ensuring a healthy, competitive future for television advertising.” Yet TV ad buyers still encounter a number of challenges, including growing content options and distribution channels, the fact that audience relationships and advertising rights are split between a number of distributors and content owners, and the data matching is done by third-party providers creating long turnaround times and expense. Among those surveyed, 44 percent said transparency was the biggest barrier to their company using data to build audience segments for TV advertising. Close behind were accountability and measurement concerns (43%) and worries about data privacy (42%). “The findings confirmed that advertisers are eager to bring additional data to TV, similar to their use of data in digital media. Yet, there is also the recognition that TV is different,” said Blockgraph GM Jason Manningham. “So, while they are bringing more data to TV, the growth, albeit strong, is

(Continued on Page 3)

DATA TO PLAY EVEN BIGGER ROLE IN BUYING, SELLINGADVERTISER NEWS Why should burger chains have all the fun? CNBC reports that KFC is joining the long list of restaurants thinking about adding plant-based meat substitutes to its menu. Kevin Hochman, who heads KFC’s U.S. division, said the company does not have any plans to test vegan alternatives right now, but Business Insider says he has meetings scheduled with several major suppliers to learn more about plant-based meats. Other chains such as Burger King and Del Taco have already taken the plunge using plant-based beef and

sausage products and reaped the rewards... Gap cut its full-year earnings forecast and reported a bigger-than-expected drop in same-store sales, especially at its Gap brand outlets, sending its shares plunging

in extended trading yesterday. Gap, once a trendsetter with its casual logo emblazoned hoodies and khaki cargos, has been under pressure as a lack of new designs pushed its customers to switch to fast-fashion rivals such as H&M and Inditex’s Zara. Sales at established Gap brand stores fell 10 percent in the first quarter ended May 4, bigger than the 4 percent decline analysts’ had estimated, according to IBES data from Refinitiv. Overall same-store sales fell 4 percent, larger than the 1.2 percent drop analysts had expected... FedEx plans to deliver packages seven days a week starting next January as it tries to keep up with the continuing boom in online shopping, MarketWatch reports. The company is also taking back nearly 2 million daily deliveries to homes that are currently handled by the post office. FedEx says shifting SmartPost packages back to its own network will give drivers more deliveries bunched closer together and increase their efficiency. FedEx already runs seven days a week around Christmas. FedEx says the change will increase the company’s ability to meet the demands of e-commerce retailers and online shoppers... A North Face campaign designed to hack Wikipedia’s system of disclosing paid advocacy has resulted in an apology from the sportswear brand, AdAge reports. Earlier this week, the brand touted a new campaign in which it updated the imagery on the Wikipedia pages of popular outdoors destinations to include pictures of athletes wearing The North Face products. The effort was designed to pull the brand to the top of Google search pages without costing the brand a cent. But Wikipedia editors and some consumers were outraged at the stunt, which Wikipedia says breaches its terms... Amazon has added a feature to its Echo devices that allows users to delete recordings of their voices with a simple command such as “Alexa, delete everything I said today.” The additional feature comes amid consumer concerns that Amazon was illegally collecting voice recordings and additional identifying information of minors with its Echo Dot Kids Edition... Uber Elevate has filed a petition with the FAA for permission to launch food delivery drones in San Diego. The drones the company wants to use are able to fly about three miles and carry up to 25 pounds.

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

NBCU LANDS ADVERTISER FOR SHOPPABLE TV NBC Universal has tapped Lacoste as the first advertiser for the media company’s new Shoppable TV feature, Ad Age reports. The program will debut at the French Open tennis match of Lacoste brand ambassador Novak Djokovic this weekend. “Tennis fans can shop the Lacoste X Novak Djokovic Collection while watching him play in real time,” Josh Feldman, executive VP, head of marketing and advertising creative at NBC, said in a statement. Viewers watching the Djokovic competitions on NBC will

receive an alert, encouraging them to hold up their phone cameras during “on-air shoppable moments.” By clicking on a QR code, consumers can purchase items directly from the athlete’s collection on Lacoste.com, which includes a tech-jersey polo shirt costing $110 as well as the orange and black-and-white outfits Djokovic will wear on the court. To further monetize its content and offer more to marketers, NBC began pitching brands on Shoppable TV earlier this

month. Feldman says the offering has been well received and that NBC is in talks with additional brands beyond Lacoste. The media company collects a commission on any purchases made through its program. Walmart is also testing shoppable ads on its Vudu streaming service, while Google is also testing shoppable ads on YouTube.

DESPITE BUMPS, ECONOMY STILL STRONG IN Q1 U.S. economic growth remained robust in the first quarter, although fresh government data showed less business investment, a decline in corporate profits and muted consumer spending. The outlook for the rest of the year is clouded by the threat of a slowing global economy, trade tensions with China and weakening inflation. That’s leading bond investors to wonder if the Federal Reserve could cut rates to boost growth. Strong exports and inventory investment helped U.S. gross domestic product grow at a 3.1 percent annual rate in the first quarter, the Commerce Department said yesterday. That marked a significant improvement from the last three months of 2018, when the economy grew at a 2.2 percent rate. It was slightly down from the government’s earlier, preliminary estimate for first-quarter growth of 3.2 percent.

JOBLESS CLAIMS STILL NEAR HISTORIC LOWS The number of Americans filing applications for new unemployment benefits increased last week but remained near historic lows. Initial jobless claims, a proxy for layoffs across the U.S., rose by 3,000 to a seasonally adjusted 215,000 in the week ended May 25, the Labor Department said yesterday. Economists surveyed by The Wall Street Journal expected 215,000 new claims last week. The four-week moving average of claims, a steadier measure, declined to 216,750. As the U.S. economy nears the longest economic expansion on record, employers continue to churn out jobs while the unemployment rate remains low. This has pushed the number of claims lower and spurred faster wage growth.

NETWORK NEWS NBC has decided to cancel three new midseason series, comedy Abby’s and dramas The Village and The Enemy Within. They join sophomore midseason comedy A.P. Bio, which was axed last week. NBC left the future of the four shows undecided heading into its upfront presentation earlier this month. The decision is not surprising as none has been a critical or commercial breakout. The Village and The Enemy Within just wrapped their runs; Abby’s has a couple of more episodes... Power co-star La La Anthony has been tapped for a recurring role on Fox’s six-episode summer drama series BH90210, playing the wife of original Beverly Hills, 90210 co-star Brian Austin Green. She is the first non-90210 alum to officially join the cast of the new series... After his removal from the anchor chair of the CBS Evening News, Jeff Glor has decided to stick with the network as co-host of CBS This Morning: Saturday. He’ll work alongside Dana Jacobson and Michelle Miller. Glor also has been named CBS News Special Correspondent, in which capacity he will report feature stories and investigative reports for the network. Glor starts his new gig on June 22.

BROADCAST NETWORKS CHASE UPFRONT HIKES The TV upfront advertising market is busy, with big broadcast networks asking for double-digit percentage increases, Television News Daily reports. Media-buying executives say TV networks are proposing big 15 percent to 20 percent increases in primetime cost-per-thousand viewer prices (CPMs). According to media executives, marketers are estimated to be looking to settle for around 12 percent to 13 percent hikes. One veteran media agency executive called the conditions “brutal.” NBC and CBS are said to be particularly active, nearing deals. A number of factors are contributing to rising prices, including competition from more direct-to-consumer brands — around 150 marketers — looking to participate in the market. They’re shifting some spending to national TV from digital media. Growing DTC brands (pet foods, mattresses, fitness equipment, etc.) are willing to pay near full CPM prices for TV network inventory. They could squeeze out some traditional major TV upfront brands.

CBS, VIACOM SHARES RISE ON POSSIBLE MERGER CBS and Viacom shares climbed yesterday after CNBC said the two companies will restart merger talks in mid-June. Citing unnamed sources familiar with the deal, the network said the boards of both companies are preparing for deal talks and that current Viacom CEO Bob Bakish would likely become CEO of the combined company. This would be the third time that both companies have explored a recombination after their split in 2006. Both companies explored the possibility of recombining in 2016 and again in 2018, only to scrap those plans after they couldn’t agree on a proper valuation.

5/31/2019

Larry The Cable Guy

Well, it’s looking less and less likely I’ll make the cover

of Men’s Health. However, maybe I got a shot at getting

on a Ben and Jerry’s lid.

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

COMING TO BEER ADS: ACTIVE NFL PLAYERS The National Football League has loosened its alcohol ad policies, including giving official sponsors the freedom to use active players in beer ads for the first time, AdAge reports. The changes were first reported by Morning Consult, which cited a league email sent to team presidents and marketing and sponsorship executives. While liquor brands still can’t use active players in marketing, booze marketers can now promote themselves as the “official” product of teams they sponsor, according to the report.

Anheuser-Busch InBev, the NFL’s official beer sponsor, confirmed the changes. The NFL’s update follows a deal the brewer struck last year with pro baseball and basketball players’ unions that cleared the way for the brewer to use more active players in ads from those sports. Spirits brands had been banned from running ads of any kind during NFL games until the league lifted the ban in 2017. Beer brands have long been able

to run ads during games, but marketers were barred from using active players. That explains why so many beer ads relied on retired stars and coaches in ads.

THIS AND THAT The demand for warehouse space is expected to slow to 0.9 percent over the next three years, about half the 2018 level, according to the Deloitte Center for Financial Services. The amount of space for distribution centers is expected to grow by 850 million square feet over the next four years, down from the 14.8 billion square feet added between 2014 and 2018... According to Variety, Peter Naylor, SVP and head of advertising sales for Hulu, estimates the streaming service has 82 million viewers, 70 percent of which use the service’s ad-supported plan. The service, which limits ad breaks to 90 seconds and is developing new models for ad breaks, brought in almost $1.5 billion in ad revenue last year.

5/31/2019

George Carlin

Frisbeetarianism is the belief that when you die,

your soul goes up on the roof and gets stuck.

WEDNESDAY NIELSEN RATINGS - LIVE + SAME DAY

NRF EYES RECORD FATHER’S DAY SPENDING Father’s Day spending is set to reach a new record, according to the National Retail Federation (NRF). The annual NRF survey conducted by Prosper Insight & Analytics estimates total spending for Father’s Day in 2019 will reach $16 billion. That’s the highest figure ever recorded by the survey and up 4.5 percent from last year’s $15.3 billion. Father’s Day spending has grown 70 percent, approximately $6.6 billion, since 2009. The biggest drivers are growth in spending by consumers ages 35-44, and spending on clothing, special outings and gift cards. This year, 76 percent plan to celebrate and are expected to spend a record $138.97, up from last year’s $132.82, and up from $91 in 2009. Those 35-44 plan to spend the most, at an average $197.66, over $100 more than this age group spent 10 years ago. Men planned to spend the most for Mother’s Day this year, and are also likely to spend more than women for Father’s Day at $160.74 compared with $118.29. The most popular gift item will be greeting cards, with 62 percent of consumers planning to spend $830 million. Other popular Father’s Day items will be special outings, with 47 percent planning to spend $3.3 billion, clothing (46%, $2.5 billion), gift cards (43%, $2.3 billion), books/CDs (21.5%, $588 million), personal care (20.5%, $905 million), electronics (20%, $1.8 billion) and tools/appliances (18%, $863 million).

DATA GETS BIGGER ROLE IN BUYING, SELLING(Continued from Page 1)actually tempered a bit by today’s challenges.” Faced with those barriers, Blockgraph aims to offer a solution by partnering with some of the biggest companies in TV, digital video and advertising. It provides a platform that allows participating organizations to directly match their data sets quickly and in a way that helps them control and prevent access to any proprietary or identifying consumer information. “Considering that data is the cornerstone to almost all of the innovation that will make TV a smarter, more efficient, more effective advertising vehicle, we need to solve the sizable challenges that still surround data sharing and activation,” said Dave Clark, GM of FreeWheel. He thinks the Blockgraph initiative offers a path that can accelerate the growth trajectory of data-driven TV advertising, one that will benefit the television industry, advertisers, distributions and audience. Download the full white paper HERE.

DONE DEAL Comscore and California Oregon Broadcasting, the oldest independent broadcast group in the West, have announced a long-term agreement for Comscore to exclusively provide measurement services to their television stations KOBI+ (NBC) and KOBI2 (ThisTV) in Medford, Ore., and KSLR (FOX) and KEVU (MyNet) in Eugene, Ore.