FORRESTER: MARKETERS NEED TO CUT DIGITAL · FORRESTER: MARKETERS NEED TO CUT DIGITAL CONSUMERS CAN...

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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 Thursday, May 4, 2017 FORRESTER: MARKETERS NEED TO CUT DIGITAL CONSUMERS CAN NOW AVOID INTERRUPTIONS A new report from Forrester is urging major marketers to pull as much as $2.9 billion out of digital display advertising in the next year. Don’t get excited—the report isn’t suggesting that they put it back into television. Rather, the Forrester analysts are pitching “relationship technology” as the future of marketing—so they named the report The End of Advertising As We Know It. The report notes the current backlash against major online publishers and ad networks, including Google and Facebook. Major advertisers like GE and JP Morgan Chase have been reexamining their digital display advertising spend and threatening to cut significant dollars out as they pressure companies like Google and Facebook to provide more transparency and ultimately more standardization into their ad reporting. That’s good, necessary, and moving in the right direction for the health of the digital economy says lead author James McQuivey, but he and his colleagues say something bigger is happening. “Society doesn’t need advertising like it used to. People have less time for interruption-driven media. At the same time, they are putting more trust in intelligent agents to guide their decisions,” he writes in pitching the report. “Interruptions have worked for a while now and still do in the digital age. Google made $79.4 billion last year by interrupting search results; Facebook made $26.9 billion in ad revenue by interrupting social interactions. But interruption only works if consumers spend time doing interruptible things on interruption-friendly devices,” the report says. Already 38% of U.S. online adults are using ad blockers and the Forrester analysts say ad avoidance will continue to expand “Interruptions are coming to an end,” says McQuivey, explaining, “you don’t need to think hard to envision a world in which Alexa answers most of the questions you search Google for today. The Forrester report says 2017 should be taken as an opportunity to invest in building deeper relationships with customers. Yes, they can put pressure on Google by pulling money out of wasted digital impressions, “but rather than just banking it for shareholder value, they can and should begin investing in a phalanx of relationship technologies that will make this future possible.” One example: Progressive could add “Flo’s” synthesized voice to a whole range of skills, apps, and bots, as a way to reinforce the brand’s personality. “Flo,” of course, exists only because of television advertising. We would note that TV has adapted to many changes in media usage—and continues to thrive. ADVERTISER NEWS Americans continue to fight the battle to lose weight and stay in shape. Weight Watchers finished the first quarter with 16% more subscribers than the same point last year, mostly coming from 20% growth in online subscribers. It showed a net profit of $10.7 million for the quarter compared to a loss of $10.8 million in 2016’s first quarter……Planet Fitness revenue for the quarter was up 9.3% with systemwide same store sales up 11.1% (franchisees up 11.5% while corporate-owned stores were up just 4.5%). 54 new gyms were opened during the quarter bringing the total up to 1,367 in 48 states……The New York Post reports several private equity funds have been looking into a possible buyout of Staples and Cerberus Capital Management and Sycamore Partners appear to be the most likely buyers if a deal is to be made. Cerberus, which once owned Chrysler, currently controls Albertson’s and Sycamore’s current retail investments include Belk and Talbots……The first quarter is the least important in the amusement park category but Cedar Fair is encouraged by what it has seen so far this year. With parks in nine states the company says early-season trends for advance purchase commitments are strong and it expects its eighth consecutive year of record-setting performance……Yum Brands had mixed results for the first quarter, with Taco Bell’s 8% same-store sales gain leading the way and KFC positive with 2% comp growth. Pizza Hut, however, pulled down corporate numbers with a 3% decline……Applebee’s recently changed its leadership and a quarterly same-store plunge of 7.9% (after a 7.2% decline in the previous quarter) helps to explain the move. The new president of the chain doesn’t blame the tough casual-dining climate instead saying “Applebee’s recent subpar performance has been mostly self-inflicted,” suggesting attempts to reposition the brand alienated core customers. DineEquity’s other chain IHOP same-store sales were down 1.7%.... (Continued on page 3)

Transcript of FORRESTER: MARKETERS NEED TO CUT DIGITAL · FORRESTER: MARKETERS NEED TO CUT DIGITAL CONSUMERS CAN...

Page 1: FORRESTER: MARKETERS NEED TO CUT DIGITAL · FORRESTER: MARKETERS NEED TO CUT DIGITAL CONSUMERS CAN NOW AVOID INTERRUPTIONS ... superstars Bruno Mars, Camila Cabello, Celine Dion,

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 Thursday, May 4, 2017

FORRESTER: MARKETERS NEED TO CUT DIGITALCONSUMERS CAN NOW AVOID INTERRUPTIONS A new report from Forrester is urging major marketers to pull as much as $2.9 billion out of digital display advertising in the next year. Don’t get excited—the report isn’t suggesting that they put it back into television. Rather, the Forrester analysts are pitching “relationship technology” as the future of marketing—so they named the report The End of Advertising As We Know It. The report notes the current backlash against major online publishers and ad networks, including Google and Facebook. Major advertisers like GE and JP Morgan Chase have been reexamining their digital display advertising spend and threatening to cut significant dollars out as they pressure companies like Google and Facebook to provide more transparency and ultimately more standardization into their ad reporting. That’s good, necessary, and moving in the right direction for the health of the digital economy says lead author James McQuivey, but he and his colleagues say something bigger is happening. “Society doesn’t need advertising like it used to. People have less time for interruption-driven media. At the same time, they are putting more trust in intelligent agents to guide their decisions,” he writes in pitching the report. “Interruptions have worked for a while now and still do in the digital age. Google made $79.4 billion last year by interrupting search results; Facebook made $26.9 billion in ad revenue by interrupting social interactions. But interruption only works if consumers spend time doing interruptible things on interruption-friendly devices,” the report says. Already 38% of U.S. online adults are using ad blockers and the Forrester analysts say ad avoidance will continue to expand “Interruptions are coming to an end,” says McQuivey, explaining, “you don’t need to think hard to envision a world in which Alexa answers most of the questions you search Google for today. The Forrester report says 2017 should be taken as an opportunity to invest in building deeper relationships with customers. Yes, they can put pressure on Google by pulling money out of wasted digital impressions, “but rather than just banking it for shareholder value, they can and should begin investing in a phalanx of relationship technologies that will make this future possible.” One example: Progressive could add “Flo’s” synthesized voice to a whole range of skills, apps, and bots, as a way to reinforce the brand’s personality. “Flo,” of course, exists only because of television advertising. We would note that TV has adapted to many changes in media usage—and continues to thrive.

ADVERTISER NEWS Americans continue to fight the battle to lose weight and stay in shape. Weight Watchers finished the first quarter with 16% more subscribers than the same point last year, mostly coming from 20% growth in online subscribers. It showed a net profit of $10.7 million for the quarter compared to a loss of $10.8 million in 2016’s first quarter……Planet Fitness revenue for the quarter was up 9.3% with systemwide same store sales up 11.1%

(franchisees up 11.5% while corporate-owned stores were up just 4.5%). 54 new gyms were opened during the quarter bringing the total up to 1,367 in 48 states……The New York Post reports several private equity funds have been looking into a possible buyout of Staples and Cerberus Capital Management and Sycamore Partners appear to be the most likely buyers if a deal is to be made. Cerberus, which once

owned Chrysler, currently controls Albertson’s and Sycamore’s current retail investments include Belk and Talbots……The first quarter is the least important in the amusement park category but Cedar Fair is encouraged by what it has seen so far this year. With parks in nine states the company says early-season trends for advance purchase commitments are strong and it expects its eighth consecutive year of record-setting performance……Yum Brands had mixed results for the first quarter, with Taco Bell’s 8% same-store sales gain leading the way and KFC positive with 2% comp growth. Pizza Hut, however, pulled down corporate numbers with a 3% decline……Applebee’s recently changed its leadership and a quarterly same-store plunge of 7.9% (after a 7.2% decline in the previous quarter) helps to explain the move. The new president of the chain doesn’t blame the tough casual-dining climate instead saying “Applebee’s recent subpar performance has been mostly self-inflicted,” suggesting attempts to reposition the brand alienated core customers. DineEquity’s other chain IHOP same-store sales were down 1.7%.... (Continued on page 3)

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NETWORK NEWS ABC and Dick Clark Productions have released the first round of musical performers to appear on the 2017 Billboard Music Awards. The roster currently includes superstars Bruno Mars, Camila Cabello, Celine Dion, Ed Sheeran, Florida Georgia Line, Imagine Dragons, John Legend, Lorde and Nicki Minaj. More to come. The 2017 Billboard Music Awards will air live on ABC Sunday, May 21st at 8 PM (ET)……Alicia Keys says that she will not return to The Voice for the show’s next season, in order to focus on a follow-up to her 2016 album, Here. She said, “I’m about halfway,” in the process for the follow up album. “ Keys did not rule out a possible return to The Voice in a future season……Hulu has inked a deal with NBC and 20th Century Fox Television Distribution for the streaming rights to the hit primetime series This Is Us. The deal makes the show’s past and current episodes available across multiple platforms. The deal also make all the show’s first season immediately available to Hulu subscribers as well as those with a pay TV subscription. The deal was announced during Hulu’s upfront presentation on Wednesday……ABC’s Designated Survivor has announced that Keith Eisner has signed on as the political drama’s fourth showrunner. Eisner will take over for Jeff Melvoin, who will remain as executive producer during the show’s anticipated second season. Eisner has worked on Graves, Law & Order, Gilmore Girls and NYPD Blue……NBC has joined the lineup of networks that will air a primetime special about Princess Diana. The network will air The Life and Death of Princess Diana: A Dateline Investigation, a two-hour special, airing Friday. It is the latest in a long line of news specials centered on Princess Diana and tied to the upcoming 20th anniversary of her death. The special will include interviews with forensic scientist Patrick Touron, former French diplomat Sami Nair, Simone Simmons and lead U.K. investigator Lord John Stevens. Gayle King will host a primetime news special for CBS on May 22nd. ABC has two specials: One looking specifically at the last 100 days of her life that will air Sunday, and a four-hour, two-night telecast from People magazine parent company Time Inc. set to air in August.

BUSINESS BYTES The housing market is already strong, which gives posi-tive impetus to several retail categories, and if a report from BMO Harris Bank is correct, the market will stay strong for years to come. A study done by the bank finds a big jump in the number of Americans planning to buy a home in the next five years, with 54% of respondents saying they plan to do so, up 12% from the same study done a year ago. Addition-ally, persons surveyed say they’re willing to pay an average of $277,000 and will average a 32% down payment. As far as looking for those homes, 65% expect to consult a real es-tate agent while 61% will utilize online real estate websites. 38% said they would hope to get recommendations from friends and family.

AVAILS WMBF-TV, the NBC affiliate in sunny Myrtle Beach, SC, is currently recruiting for a Local Sales Manager to join our team. We’re searching for a dynamic candidate with strong leadership, motivational and sales skills and a proven track record of success. Exceptional skills in recruiting, coaching, and training top performing sellers is a must. Must be a critical thinker with a desire to lead a first-class sales team with creative ideas. CLICK HERE for more info or to apply. No calls please! EOE-M/F/D/V. Univision seeks a National Sales Manager – Los

Angeles. The NSM acts as a liaison between the outside sales offices and the television station. Responsibilities include detailed forecasting of national sales revenue by office, travel & expense budgeting, and conducting regular evaluations of national sales office performance. Requires a minimum of 5-10 years in broadcast sales and 3+ years in broadcast sales management. Prior experience in agency and retail advertising required with strong focus

and experience in managing/executing new business. CLICK HERE for more info or to apply now. EOE. Sunny Orlando, FL! RARE OPPORTUNITY to join FOX O&O duopoly (WOFL-TV/WRBW-TV/fox35Orlando.com) in the dynamic and fast growing DMA 18. We’re looking for a Local Sales Manager to develop and implement strategic plans to achieve traditional and non-traditional goals, on-air and online. Must have a proven track record of success that includes outstanding leadership, motivation, and communication qualities, with a passion to win. If you want to join our already strong and experienced sales team, we want to hear from you. CLICK HERE for information to apply. EOE/M/F/Veteran/Disabled. Capitol Broadcasting Company’s Sports Radio Division is seeks an Inside Sales Representative with great drive and self-discipline to generate qualified new business appointments each week for our sports marketing sales team at WCMC-FM in Raleigh, NC. A solid understanding of digital media and sales options required. Knowledge of local and national sports is helpful, but not required. CLICK HERE for more info or to apply. EOE M/F. All Capitol Broadcasting Company properties are tobacco free. CBC participates in E-Verify. WFTS – the ABC affiliate owned by E.W. Scripps in Tampa, FL (Market #11) seeks an Integrated Account Executive. The winning candidate will be required to grow revenue with an existing client list while also cultivating New Business and Digital revenue for the station. Candidate must have excellent presentation skills, verbal and written skills and work collaboratively with our properties. Prior broadcast TV and diverse digital sales experience required. CLICK HERE for more info or to apply now. EOE.experience. CLICK HERE for more info or to apply today. Equal Opportunity Employer and a Drug Free Workplace!

5/4/2017

FunnyTweeter.com

Someone should open a bar called “The Gym”, so when I tell people where I’m going,

it won’t be a lie.

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

MOST LIKELY BANKRUPTCIES TO COME The Wall Street Journal reports there have been 14 retailer bankruptcies so far this year following a year in which only 18 such retail filings occurred in the full year. There are probably more to come, and S&P Global Market Intelligence is reporting on ten firms it feels are most at risk of default in the next twelve months. Not all are TV advertisers and not all are widely known, but some are likely current advertisers in at least some markets.

1) No surprise: Sears Holdings, whose latest moves includes closing 92 Kmart pharmacies and 50 Sears Auto Centers.

2) DGSE Companies, Dallas-based seller of precious metals and jewelry, the company has said it has “eschewed the unsuccessful strategies of recent years.”

3) Appliance Recycling Center, about 18 retail locations under the ApplianceSmart banner. Company has a market value under $10 million.

4) Bon-Ton Stores. Had a $63 million loss last year and expects comp declines this year. Although it has over 260 stores and $2.5 billion in revenue, has just a $13 million market value.

5) Bebe Stores. Closing remaining stores and will attempt to sell online only.

6) Destination XL Group. Slowing store expansion and projecting net loss for this year, but CEO strongly denies S&P analysis as “misguided.”

7) Perfumania. Dwindling traffic to mall stores and tourist-dependent locations. Market value about $14 million.

8) Fenix Parts. Reseller of auto parts from damaged vehicles, has market value less than $25 million.

9) Tailored Brands. Would probably make George Zimmer happy if it were to happen, but parent of Men’s Wearhouse says S&P analysis is “extremely misleading.” Still, S&P notes comps were down in fourth quarter and expected to fall again this year while stock has dropped almost 50% this year.

10) Sears Hometown and Outlet Stores. Spun off from Sears Holdings in 2012; the company and franchisees still operate over 1,000 stores, but company has lost money for three straight years.

“The shift to online shopping has left a lot of financial distress in its wake,” S&P’s director of risk services wrote. “The results from the first quarter do not suggest that a quick recovery is on the horizon.”

MEDIA USAGE TOPS 12 HOURS PER DAY TV is still the #1 way Americans consume media, accord-ing to the latest estimates by eMarketer. The big takeaway from the new report, though, is that total media usage by U.S. adults now exceeds 12 hours per day—an average of 12 hours, 7 minutes to be exact. That’s possible because so many people are using more than one device at a time, so if they surf the web on a smartphone while watching a TV show, both types of media are counted. eMarketer estimates average time spent per day watching TV at 4 hours, 4 minutes. Consuming content on mobile de-

vices (not including voice phone calls) is next at 3 hours, 14 minutes, with desktop/laptop use at 2 hours, 8 minutes—and other connected devices at 28 minutes. The digital devices combined would top TV at 5 hours, 50 minutes. “But while our reports early in the de-cade told a story of robust gains—with increases in digital usage more than compensating for declines in time spent with nondigital media—growth has been petering out,” the eMarketer report says. Even with multitasking, there are limits

to what one individual can do. Far back in daily media consumption is radio at 1 hour, 26 minutes. Print (not including online) is estimated by eMar-keter at a mere 25 minutes—and “other” at 21 minutes.

ACCOUNT ACTIONS gyro, Chicago, has been named U.S. Agency of Record for tax/audit company Grant Thornton LLP. The Dentsu Aegis agency will develop and launch a new brand cam-paign, creative platform and media plan. MediaPost says the firm had previously worked with Doremus……Adweek reports that Miller Lite has named DDB, Chicago, AOR for digital and social media. The account had been at Digi-tasLBi for a decade.

5/4/2017

Seth Meyers

A man is honoring his late friend’s wish by flushing his ashes down toilets in baseball stadiums across

the country. While the Mets are honoring his wish by

flushing their season, too.

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