IAB: DIGITAL ADS TOP $100 BILLION FOR THE FIRST TIMEthe $88.3 billion spent on digital advertising...

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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 2018. The Daily News of TV Sales Wednesday, May 8, 2019 VIDEO NOW COMPRISES 15% OF DIGITAL ADS “A mind blow of a number.” That’s how Sue Hogan, SVP of Research and Measurement at the Interactive Advertising Bureau (IAB) described the final tally on how much was spent on digital advertising last year. The full-year 2018 total represents a 22 percent year-over-year increase from the $88.3 billion spent on digital advertising in 2017. The IAB reports a record-breaking $107.5 billion was spent by marketers, marking the first time the $100 billion mark had been exceeded. The Internet Advertising Revenue Report is prepared by PricewaterhouseCoopers (PwC) for the IAB, and on a webinar yesterday PwC partner David Silverman said his headline isn’t the growth, but the consistency, pointing out digital ad dollars have now grown at a 20 percent or better clip in each of the past four years. To put that into perspective, he said that’s meant a five-fold increase during the past decade. “A large part of the growth in the past five or six years has been the shift to mobile. As consumers have shifted to mobile devices and multiple devices, it’s created tremendous opportunity for advertisers,” Silverman said. Mobile accounted for nearly two-thirds of 2018’s internet ad revenues, totaling $69.9 billion. That was up 40 percent from the previous year. Hogan said mobile ad spending is now more in line with the amount of time people are spending with the devices, noting time spent on mobile gadgets increased 31 percent last year. “The eyeballs have been followed by dollars much more closely than they have in the past,” she said. For TV stations making the investment in digital, the best news from the IAB came when the discussion turned to video. Advertising revenues from digital video saw the largest rise among all formats — an uptick of 37.2 percent — catapulting to $16.3 billion in 2018, up from $11.9 billion in 2017. Mobile is a big part of that. IAB says revenue from digital video ads on mobile devices totaled $10.2 billion in 2018, a 65 percent increase from the prior year. “On desktop, most formats are experiencing flat or small revenue declines,” the report says. “Video is the only format with meaningful growth, up 6.6 percent from the prior year.” And even as most formats enjoyed sizable gains on mobile, the IAB says video once again was the leading growth format. The latest data available to the IAB showed 52 percent of digital video starts are now starting on a mobile device. That’s up 13 points over the same period a year earlier. “Mobile is stimulating growth in video viewing,” Hogan concluded. The IAB’s annual revenue report doesn’t increase specific video revenue totals for OTT or other streaming video segments, but IAB executives said there’s growing discussions inside the organization about offering more granularity to the numbers going forward. Even without (Continued on Page 3) IAB: DIGITAL ADS TOP $100 BILLION FOR THE FIRST TIME ADVERTISER NEWS Macy’s, J.C. Penney and Nordstrom held the top three spots for general apparel in average monthly traffic from July 2017 to June 2018, according to a recent SimilarWeb Retail Trend report, Retail Dive says. Digitally native brands Zulily, Zappos and Poshmark followed closely behind in the fourth through sixth spots among stores with the top web traffic. The report also found Poshmark’s traffic increased more than 55 percent of its traffic coming directly, supported by organic search and some paid search. Beauty retailers, like other stores, have faced some challenges as well, but some have been able to make strides. Sephora, Ulta and L Brands-owned Bath and Body Works earned the top three spots for beauty in average monthly traffic measured during the same period... Walmart is looking to get a bigger share of the estimated $75 billion that U.S. consumers are expected to spend on their pets this year, Chain Store Age reports. The discount giant will give PetSmart’s Chewy.com and other rivals competition with the launch of its first-ever online pet pharmacy, WalmartPetRx. com. The retailer is also adding more in-store veterinary clinics. Walmart, which operates 21 vet clinics in its stores across six states, plans to expand the total to 100 during the next 12 months. The in-store clinics offer vaccines, exams and treatment for minor illnesses, with savings as much as 40 percent to 60 percent, the retailer said... Lyft reported better-than-expected sales in its first quarterly earnings report as a public company yesterday, but also disclosed massive losses that weighed on the stock until executives said on a conference call that they do see a path to profitability. Lyft reported Q1 losses of $1.14 billion, or a whopping $48.53 a share, on revenue of $776 million, up from $397.2 million in the comparable quarter a year ago, according to Lyft’s IPO filing. Much of that loss was due to stock-based compensation — typically an especially large expense in the quarter after an IPO — totalling $894 million. After adjusting for stock payouts and other factors, Lyft claimed adjusted losses of $211.5 million, or $9.02 a share. Analysts, on average, expected losses of $3.77 a share on sales of $739.9 million, according to FactSet... Tempur-Pedic is jumping into the bed-in-a-box game, USA Today reports. The mattress brand, part of Tempur Sealy International, is introducing its first bed-in-a-box as the mattress industry grapples with the fallout from over-expansion and digital competition. The Tempur-Cloud will range in price from $1,499 for a twin to $2,199 for a king, which is about three to four times more expensive than the cheapest bed-in-a-box options on the market... Mercedes-Benz recently pulled advertisements that say its new Sprinter vans are “Built in the USA” after a consumer watchdog group questioned the claims and threatened to file a complaint with the FTC, the Charleston (S.C.) Post and Courier reports. The vans are still mostly made in Germany, not at the company’s North Charleston plant, says the advocacy group, Truth in Advertising.

Transcript of IAB: DIGITAL ADS TOP $100 BILLION FOR THE FIRST TIMEthe $88.3 billion spent on digital advertising...

Page 1: IAB: DIGITAL ADS TOP $100 BILLION FOR THE FIRST TIMEthe $88.3 billion spent on digital advertising in 2017. The IAB reports a record-breaking $107.5 billion was spent by marketers,

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 2018.The Daily News of TV Sales Wednesday, May 8, 2019

VIDEO NOW COMPRISES 15% OF DIGITAL ADS “A mind blow of a number.” That’s how Sue Hogan, SVP of Research and Measurement at the Interactive Advertising Bureau (IAB) described the final tally on how much was spent on digital advertising last year. The full-year 2018 total represents a 22 percent year-over-year increase from the $88.3 billion spent on digital advertising in 2017. The IAB reports a record-breaking $107.5 billion was spent by marketers, marking the first time the $100 billion mark had been exceeded. The Internet Advertising Revenue Report is prepared by PricewaterhouseCoopers (PwC) for the IAB, and on a webinar yesterday PwC partner David Silverman said his headline isn’t the growth, but the consistency, pointing out digital ad dollars have now grown at a 20 percent or better clip in each of the past four years. To put that into perspective, he said that’s meant a five-fold increase during the past decade. “A large part of the growth in the past five or six years has been the shift to mobile. As consumers have shifted to mobile devices and multiple devices, it’s created tremendous opportunity for advertisers,” Silverman said. Mobile accounted for nearly two-thirds of 2018’s internet ad revenues, totaling $69.9 billion. That was up 40 percent from the previous year. Hogan said mobile ad spending is now more in line with the amount of time people are spending with the devices, noting time spent on mobile gadgets increased 31 percent last year. “The eyeballs have been followed by dollars much more closely than they have in the past,” she said. For TV stations making the investment in digital, the best news from the IAB came when the discussion turned to video. Advertising revenues from digital video saw the largest rise among all formats — an uptick of 37.2 percent — catapulting to $16.3 billion in 2018, up from $11.9 billion in 2017. Mobile is a big part of that. IAB says revenue from digital video ads on mobile devices totaled $10.2 billion in 2018, a 65 percent increase from the prior year. “On desktop, most formats are experiencing flat or small revenue declines,” the report says. “Video is the only format with meaningful growth, up 6.6 percent from the prior year.” And even as most formats enjoyed sizable gains on mobile, the IAB says video once again was the leading growth format. The latest data available to the IAB showed 52 percent of digital video starts are now starting on a mobile device. That’s up 13 points over the same period a year earlier. “Mobile is stimulating growth in video viewing,” Hogan concluded. The IAB’s annual revenue report doesn’t increase specific video revenue totals for OTT or other streaming video segments, but IAB executives said there’s growing discussions inside the organization about offering more granularity to the numbers going forward. Even without

(Continued on Page 3)

IAB: DIGITAL ADS TOP $100 BILLION FOR THE FIRST TIMEADVERTISER NEWS Macy’s, J.C. Penney and Nordstrom held the top three spots for general apparel in average monthly traffic from July 2017 to June 2018, according to a recent SimilarWeb Retail Trend report, Retail Dive says. Digitally native brands Zulily, Zappos and Poshmark followed closely behind in the fourth through sixth spots among stores with the top web

traffic. The report also found Poshmark’s traffic increased more than 55 percent of its traffic coming directly, supported by organic search and some paid search. Beauty retailers, like other stores, have faced some challenges as well, but some have been able to make strides. Sephora, Ulta and L Brands-owned Bath and

Body Works earned the top three spots for beauty in average monthly traffic measured during the same period... Walmart is looking to get a bigger share of the estimated $75 billion that U.S. consumers are expected to spend on their pets this year, Chain Store Age reports. The discount giant will give PetSmart’s Chewy.com and other rivals competition with the launch of its first-ever online pet pharmacy, WalmartPetRx.com. The retailer is also adding more in-store veterinary clinics. Walmart, which operates 21 vet clinics in its stores across six states, plans to expand the total to 100 during the next 12 months. The in-store clinics offer vaccines, exams and treatment for minor illnesses, with savings as much as 40 percent to 60 percent, the retailer said... Lyft reported better-than-expected sales in its first quarterly earnings report as a public company yesterday, but also disclosed massive losses that weighed on the stock until executives said on a conference call that they do see a path to profitability. Lyft reported Q1 losses of $1.14 billion, or a whopping $48.53 a share, on revenue of $776 million, up from $397.2 million in the comparable quarter a year ago, according to Lyft’s IPO filing. Much of that loss was due to stock-based compensation — typically an especially large expense in the quarter after an IPO — totalling $894 million. After adjusting for stock payouts and other factors, Lyft claimed adjusted losses of $211.5 million, or $9.02 a share. Analysts, on average, expected losses of $3.77 a share on sales of $739.9 million, according to FactSet... Tempur-Pedic is jumping into the bed-in-a-box game, USA Today reports. The mattress brand, part of Tempur Sealy International, is introducing its first bed-in-a-box as the mattress industry grapples with the fallout from over-expansion and digital competition. The Tempur-Cloud will range in price from $1,499 for a twin to $2,199 for a king, which is about three to four times more expensive than the cheapest bed-in-a-box options on the market... Mercedes-Benz recently pulled advertisements that say its new Sprinter vans are “Built in the USA” after a consumer watchdog group questioned the claims and threatened to file a complaint with the FTC, the Charleston (S.C.) Post and Courier reports. The vans are still mostly made in Germany, not at the company’s North Charleston plant, says the advocacy group, Truth in Advertising.

Page 2: IAB: DIGITAL ADS TOP $100 BILLION FOR THE FIRST TIMEthe $88.3 billion spent on digital advertising in 2017. The IAB reports a record-breaking $107.5 billion was spent by marketers,

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

AVAILS Lockwood Broadcast Group is seeking General Manager candidates for oversight of its ABC station, KAKE, in Wichita, Kan. We’re looking for a dynamic leader with a strong record of success in broadcasting who can create an environment for collaboration amongst stakeholders in order to drive station revenue and innovation while also holding station teams accountable for the attainment of station goals. Candidates aspiring to grow their careers with a solid broadcast group should send a resume to [email protected]. EOE.

Telemundo 47 — NBC 4 New York seeks a Local Sales Director. The ideal candidate has a minimum of 10 years of broadcast sales management experience, with a proven track record of successful revenue generation as well as growing station shares. Candidates must understand how to communicate effectively and build strong internal and external relationships. Strong computer skills with particular proficiency in Excel and PowerPoint, as well as knowledge

of traffic systems, required. Please follow THIS LINK for more info or to apply now. KCNC/CBS4 Denver seeks a highly motivated, experienced Account Executive. Have you ever considered living in a city less than an hour from some of the world’s best skiing, biking and running mountains in the world? All while having the opportunity to develop and sell television and digital opportunities in March Madness, Denver Broncos football and CBS Prime. If you fall into this category, follow THIS LINK to apply. EOE.

See your ad here tomorrow! CLICK HERE for details.

DO CONSUMERS STILL CARE ABOUT OWNERSHIP? The results of a new international consumer survey should give hope to subscription-based retailers, Chain Store Age reports. According to a survey of about 13,500 adults across 12 countries conducted on behalf of subscription management platform Zuora by The Harris Poll, subscription services are experiencing growth on a global scale. Results indicate 71 percent of respondents have subscription services, up from 53 percent who had them five years ago. Roughly one-quarter of international adults (26%) report they have three or more subscriptions, compared to 14 percent who had three or more five years ago. The survey also found that 74 percent of respondents believe that in the future, people will subscribe to more services and own less physical goods. Thirty-four percent believe that they will be taking advantage of more subscription services two years from now. The findings contradict the results of a recent survey from YouGov that suggest subscription boxes have yet to catch on, at least in the U.S. YouGov data shows that 80 to 85 percent of U.S. adult consumers have never subscribed to a service any of four major product categories, and only 33 percent are very or somewhat likely to subscribe to a service.

NETWORK NEWS CBS News is moving Norah O’Donnell from CBS This Morning into the CBS Evening News anchor chair (in place of Jeff Glor) effective this summer. O’Donnell will also be the managing editor for the nightly newscast. Joining Gayle King as co-anchors of CBS This Morning will be Anthony Mason and Tony Dokoupil, effective May 20. John Dickerson is shifting over to 60 Minutes... NBC has given a series order to drama pilot Council of Dads, a project inspired by Bruce Feiler’s best-selling memoir. Deadline says it’s been a standout throughout the pilot process and, with a similar sensibility to This Is Us, is considered a potential companion for the hit family drama. Council of Dads, starring Sarah Wayne Callies, Clive Standen, Tom Everett Scott and J. August Richards, tells the story of a man and his family, whose lives are thrown into upheaval when he gets a potentially terminal diagnosis. Facing his mortality, he and his wife assemble a unique group of carefully chosen friends to support his family and guide them through life’s many challenges... The genealogy documentary series Who Do You Think You Are?, which aired on NBC from 2010 to 2012 and then on TLC from 2013 to 2018, is returning to NBC. The network has ordered 13 new episodes featuring a new group of celebrities who will celebrate culture and set sail on their mission to connect with their personal history... CBS’s The Talk has confirmed that Marie Osmond is taking the seat left vacant by exit of Sara Gilbert. Osmond is joining Eve, Carrie Ann Inaba, Sharon Osbourne and Sheryl Underwood. She’s no stranger to the show, having guest hosted more than 40 times over the years, with the ratings responding. Gilbert announced last month she’s departing the show at end of Season 9, and Osmond joins when the series returns for Season 10... Saturday’s Kentucky Derby averaged 16.5 million viewers on NBC. NBC Sports and Nielsen report that’s a 10 percent increase over last year, when Justify’s win en route to an eventual Triple Crown averaged 15 million. The 2010 and 2017 races also averaged 16.5 million. The Derby has averaged at least 15 million for seven straight years, which is the longest streak since records were kept beginning in 1989... The CW has picked up to series Batwoman, starring Ruby Rose; Riverdale spinoff Katy Keene, headlined by Lucy Hale; and Nancy Drew, toplined by Kennedy McMann. The three pilots, along with Glamorous, had been standouts at the CW this pilot season. Glamorous, whose star Ben J. Pierce has been getting strong reviews, remains in contention, with a pickup decision pending. The Lost Boys, which did not come on as strong as the CW had hoped, will be re-piloted off-cycle and reshot with possible recastings. The Jane the Virgin offshoot, Jane the Novela, is not going forward... NBC has picked up to series legal drama Bluff City Law, starring Jimmy Smits, and Queens immigrant comedy Sunnyside, starring Kal Penn. Bluff City Law is a character-driven drama that follows the lawyers of an elite Memphis firm that specializes in the most controversial landmark civil rights cases. Sunnyside stars Penn as a former New York City councilman who finds his calling when faced with six recent immigrants in need of his help and in search of the American Dream.

5/8/2019

Seth Meyers

Duchess Meghan Markle gave birth to a baby boy who is now seventh in line for the throne, which if you ask me is just unfair. Making a baby

kill six people?

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

GROUPON WANTS TO BECOME A MARKETPLACE Groupon’s next act: ticketing company meets Airbnb meets food delivery platform. The company is looking to shed its reputation as a daily deals destination to become a platform where consumers can not only buy tickets, order food, find out about experiences brands have to offer and gain rewards for repeat purchases, Digiday reports. The company built a brand with email blasts in the early 2000s to prop up local businesses with various deals. Now, the beleaguered brand is looking to diversify its brand partners, aiming to woo major marketers to the platform to

turn around its business, as daily deal and flash sale sites have lost their luster. Craig Rowley, Groupon’s new CMO, is tasked with making sure marketers and consumers alike are aware of the change. He joined the company in March from REI, where he served as VP of marketing. “We’re moving away from the vouchers of the past,” said Rowley. “We’re building a true global marketplace with new partners and a broader selection than

we’ve ever had of local services and experiences.” With more than 47 million active customers globally and 30 million of those in the U.S., Groupon’s current brand customers include Sam’s Club, Costco and Pandora. Other brands, like AMC Theaters and TripAdvisor, are partnering with Groupon for experiential offerings.

THIS AND THAT Nexstar has sued DirecTV in a New York federal court, claiming breach of contract. At issue is an “unlaunched station fee” that it says DirecTV agreed to pay for not being required to immediately launch Nexstar station WHAG (aka WDVM). The Hagerstown, Md., station lost its affiliation with NBC on July 1, 2016... Sprint lost 189,000 of its most lucrative phone connections in Q1, the steepest such decline since at least late 2015. Some analysts, by comparison, expected the No. 4 wireless carrier by subscribers to lose about 50,000 postpaid phone connections, which refer to customers who pay their cellphone bills regularly at the end of the month. The losses come as Sprint is telling regulators it is ailing and it needs their blessing to merge with rival T-Mobile.

5/8/2019

Mark Twain

Giving up smoking is the easiest thing in the world. I know because I’ve done

it thousands of times.

MONDAY NIELSEN RATINGS - LIVE + SAME DAY

TV CONTENT RATINGS BOARD RESTORES PHONE Viewers can once again dial up the TV Parental Guidelines Monitoring Board if they have an issue with how a TV show is rated for content, Broadcasting & Cable reports. That’s according to NCTA-The Internet & Television Association, the National Association of Broadcasters, and the Motion Picture Association of America (they jointly oversee the content ratings system) in a note to the FCC this week. The board includes representatives from cable and broadcast networks, studios, syndicators and “third-party groups with an interest in children and media” The phone line to the board had been disconnected in 2017 “due to lack of use,” according to the associations, who pointed out that folks could still mail and e-mail the board. The groups had told the FCC in comments on the ratings system that the board had received no more than 47 complaints, on average, per year, and only 26 complaints in 2018 about 20 shows. But, they said, “[i]n light of the feedback provided in this proceeding,” the associations told the FCC, “the Monitoring Board has re-established a telephone line (202-570-7776) so that viewers can again contact it by phone, mail, and e-mail with questions or complaints about TV ratings.”

MILLENNIALS, GEN Z NOT FEELING SO LOYAL Loyalty programs have drawn in many consumers over the years, but millennials and Gen Zers are not participating at the same levels as generations before them, eMarketer says. In a January 2019 study by retail management platform iVend Retail, 58.7 percent of internet users worldwide cited earning rewards or loyalty points as one the most valued aspects of the retail shopping experience. That answer came in second to “quick and easy checkout.” However, not all demographics are participating in loyalty programs at the same rate. A November 2018 YouGov study of U.S. loyalty program members found that 57 percent of 25- to 34-year-olds participated in at least one loyalty program, as did 43 percent of those ages 18 to 24. While these participation rates are still fairly high across the board, the two youngest age groups — including millennials, who are currently the largest group of digital buyers — were less likely to be members of a loyalty program than the age groups immediately above them.

IAB: DIGITAL ADS TOP $100B FOR FIRST TIME (Continued from Page 1)the data points, Silverman said there’s little doubt a convergence of TV and digital and mobile is already well underway. “Whether it’s television becoming digital or internet becoming more video, there’s going to be a place where all those come together and we’re seeing that happen,” he said. “There are a lot of opportunities of digital of television and the ability to target in ways you just haven’t been able to do under the prior television model.” Read the full IAB report on 2018 revenue HERE.