Copyright 2016. NBCU HOPES OLYMPICS ADS BREAK RECORD

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MORE HOURS ON MORE PLATFORMS With the XXXI Olympic Games set to begin next week and NBCUniversal promising the “most live Olympics ever,” Kantar Media says the mark to beat for the gold in advertising sales is $1.33 billion. That was for the 2012 Summer Games in London, beating a record of $1.29 billion which had stood since the 2004 Games in Athens. “While the road to Rio has been marked by controversy and adverse publicity, the Summer Olympics remain sure to attract an enormous U.S. audience on both TV and digital platforms,” says Jon Swallen, Kantar’s Chief Research Officer. He notes that ad volume and revenues were both comparatively high for the London Games four years ago—and Rio could build on this trend to reach new heights. There will be plenty of inventory on lots of platforms available for advertisers. NBCU says its networks and digital platforms will serve up some 6,755 hours of programming for the Games. That’s roughly 356 hours of coverage per day over the course of 19 days, Kantar notes, creating many opportunities for brand engagement. The 2012 London Games set another record with NBCU airing 1,023 hours of Olympic coverage on its broadcast and cable TV networks, an increase of more than 25% from 2008. Back in 2004 it was only 804 hours for the Athens Games. National TV ad spending in the 2012 Summer Olympics hit that record of $1.33 billion and generated the most TV ad revenue of any sporting event that year. Swallen notes that the strong results represented a sharp increase from the 2008 games, when a looming recession repressed ad rates. Digital advertising brought in an additional $60 million in 2012, according to NBCU—and it will be offering advertisers a lot more digital inventory this year. Perhaps surprisingly, the number of advertisers buying TV time in the 2012 Games actually dropped from the two prior Summer Games. Swallen says that’s also been the case with other major sporting events, as deep-pockets advertisers are in a stronger position to claim category exclusivity and/ or sponsorship opportunities to claim “DVR-proof” viewing. The 10 largest TV advertisers in the 2012 games spent a total of $596 million, or 45% of all TV ad spending for the event, according to Kantar data. That was up from 40% for Continued on Page 2 ADVERTISER NEWS Will Kmart be the next iconic retail brand to disappear? Business Insider reports that employees of the 117-year old chain that began as the SS Kresge Company believe Sears Holdings is preparing to shut down the remaining 941 stores, categorizing current units into different numbered phases accompanied by cost-cutting measures such as layoffs and reductions in hours for employees while emptying stock rooms. But This Week In Consumer Electronics, which repeated the story from Business Insider, says Sears Holdings has taken strong exception to the report, saying Kmart “continue(s) to evaluate and optimize our cost structure with a focus around store-level marketing expenditures and staffing levels and improved inventory management”……Sonic Automotive’s new- vehicle sales fell 2.5% for the second quarter (worse than the overall market) but gross profit per vehicle was up 4.1% to $1,949. And while used-vehicle sales at its continuing operations were down 3.3%, sales at the expanding EchoPark used-only subsidiary were up 28.9% and the original EchoPark unit in Colorado was profitable for the first time……Asbury Automotive reported that new- vehicle same-store sales were down 4%, and after “strategic divestitures” of some dealerships late last year, total revenue was also down 4%. Asbury cited “a challenging retail environment”……”Challenging sales environment” were the words used in a different advertiser category by Buffalo Wild Wings, where same- store sales fell by 2.1% at company-owned units and were down 2.6% at franchised locations. But early results for the FastBreak 15-minute lunch guarantee were said to be encouraging……Panera Bread quarterly same-store sales rose by 2.3% systemwide, but company-owned units far outdistanced franchisees with a 4.2% gain compared Continued on Page 3 NBCU HOPES OLYMPICS ADS BREAK RECORD www.spotsndots.com PDF/TXT newsletter Subscription: $325 per year Call toll free: 888-884-2630 This publication cannot be distributed beyond the office of its named subscriber. Send sales-related job listing to: [email protected] Copyright 2016. The Daily News of TV Sales Thursday, July 28, 2016

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MORE HOURS ON MORE PLATFORMS With the XXXI Olympic Games set to begin next week and NBCUniversal promising the “most live Olympics ever,” Kantar Media says the mark to beat for the gold in advertising sales is $1.33 billion. That was for the 2012 Summer Games in London, beating a record of $1.29 billion which had stood since the 2004 Games in Athens. “While the road to Rio has been marked by controversy and adverse publicity, the Summer Olympics remain sure to attract an enormous U.S. audience on both TV and digital platforms,” says Jon Swallen, Kantar’s Chief Research Officer. He notes that ad volume and revenues were both comparatively high for the London Games four years ago—and Rio could build on this trend to reach new heights. There will be plenty of inventory on lots of platforms available for advertisers. NBCU says its networks and digital platforms will serve up some 6,755 hours of programming for the Games. That’s roughly 356 hours of coverage per day over the course of 19 days, Kantar notes, creating many opportunities for brand engagement. The 2012 London Games set another record with NBCU airing 1,023 hours of Olympic coverage on its broadcast and cable TV networks, an increase of more than 25% from 2008. Back in 2004 it was only 804 hours for the Athens Games. National TV ad spending in the 2012 Summer Olympics hit that record of $1.33 billion and generated the most TV ad revenue of any sporting event that year. Swallen notes that the strong results represented a sharp increase from the 2008 games, when a looming recession repressed ad rates. Digital advertising brought in an additional $60 million in 2012, according to NBCU—and it will be offering advertisers a lot more digital inventory this year. Perhaps surprisingly, the number of advertisers buying TV time in the 2012 Games actually dropped from the two prior Summer Games. Swallen says that’s also been the case with other major sporting events, as deep-pockets advertisers are in a stronger position to claim category exclusivity and/or sponsorship opportunities to claim “DVR-proof” viewing. The 10 largest TV advertisers in the 2012 games spent a total of $596 million, or 45% of all TV ad spending for the event, according to Kantar data. That was up from 40% forContinued on Page 2

ADVERTISER NEWS Will Kmart be the next iconic retail brand to disappear? Business Insider reports that employees of the 117-year old chain that began as the SS Kresge Company believe Sears Holdings is preparing to shut down the remaining 941 stores, categorizing current units into different numbered phases accompanied by cost-cutting measures such as layoffs and reductions in hours for employees while emptying stock rooms. But This Week In Consumer Electronics, which repeated the story from Business Insider, says Sears Holdings has taken strong exception to the

report, saying Kmart “continue(s) to evaluate and optimize our cost structure with a focus around store-level marketing expenditures and staffing levels and improved inventory management”……Sonic Automotive’s new-vehicle sales fell 2.5% for the second quarter (worse than the overall market) but gross profit per vehicle was up 4.1% to $1,949. And while used-vehicle sales at its continuing operations were down 3.3%, sales at the expanding EchoPark used-only subsidiary were up 28.9% and the original EchoPark unit in Colorado

was profitable for the first time……Asbury Automotive reported that new- vehicle same-store sales were down 4%, and after “strategic divestitures” of some dealerships late last year, total revenue was also down 4%. Asbury cited “a challenging retail environment”……”Challenging sales environment” were the words used in a different advertiser category by Buffalo Wild Wings, where same-store sales fell by 2.1% at company-owned units and were down 2.6% at franchised locations. But early results for the FastBreak 15-minute lunch guarantee were said to be encouraging……Panera Bread quarterly same-store sales rose by 2.3% systemwide, but company-owned units far outdistanced franchisees with a 4.2% gain comparedContinued on Page 3

NBCU HOPES OLYMPICS ADS BREAK RECORD

www.spotsndots.comPDF/TXT newsletter

Subscription: $325 per yearCall toll free: 888-884-2630This publication cannot be

distributed beyond the officeof its named subscriber.

Send sales-related job listingto: [email protected]

Copyright 2016.The Daily News of TV Sales Thursday, July 28, 2016

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NETWORK NEWS Dhani Jones, the former NFL linebacker who is a host of the NBC primetime reality series Spartan: Ultimate Team Challenge, will serve as a reporter for NBC Olympics’ coverage of the 2016 Rio Olympic Games. The Opening Ceremony of the Games of the XXXI Olympiad is next Friday, August 5, on NBC……Deadline reports that Meg Donnelly has been cast as a series regular in ABC’s new family comedy series American Housewife, starring Katy Mixon as the housewife, Katy Otto. Donnelly will play Taylor, the eldest of the three Otto children who was an awkward homely dork up until about three months ago when she suddenly got beautiful and is embarking on a new stage in her life. Donnelly replaces Johnny Sequoyah who was originally cast in the pilot...... Katz Broadcasting has added stations from Scripps, Cox, Midwest Television, Morris, Cordillera and Holston Valley Broadcasting to its digital networks. Katz says Grit is now available to 93% of U.S. households, with Escape and Laff 85% each.

TUESDAY RATINGS NBC News bounced back to lead the broadcast networks in the 10:00 pm (ET) hour of live coverage of the second night of the Democratic National Convention. In fact, NBC won every hour of primetime as America’s Got Talent beat ABC’s The Bachelorette: The Men Tell All, both running two hours. The Nielsen overnights put NBC at an average 1.9 rating in adults 18-49 and 5.1 in Households, with an average audience of 8.581 million viewers. ABC was at 1.2 18-49, 3.1 HH and 4.469 million; FOX, with Hotel Hell, 0.7 18-49, 1.2 HH and 1.809 million; Telemundo, with Señora Acero 3, La Coyote, 0.7 18-49, 0.8 HH and 1.607; CBS 0.6 18-49, 2.6 HH and 3.964 million; Univision 0.6 18-49, 1.0 HH and 1.743 million; and The CW 0.4 18-49, 0.8 HH and 1.146 million.

NBC WRAPS UP THE UPFRONT The 2016 Upfront is complete, with NBC reporting CPM gains of 12.5% and volume up 10%. “We could have sold more if we wanted to,“ NBCUniversal CEO Steve Burke said on a Wall Street conference call. NBCU was last to the finish line because it was selling many package deals across multiple broadcast, cable and digital platforms. FOX and ABC finished their Upfront deals earlier this month, after CBS and The CW concluded before June was out.

NBCU HOPES OLYMPICS ADS BREAK RECORDContinued from Page 1the Top 10 in 2008 and 34% in 2004. What else comes close to the Olympics? The closest competitors in 2012 were the NCAA Men’s Basketball Tournament, which was supported by $1.01 billion in TV ad revenues, and the NFL post-season (including the Super Bowl), which generated $976 million. In 2016, those two events produced $1.21 billion and $1.37 billion of TV spending, respectively, raising the question of whether the Games this year will again top them.

AVAILS Account Executive: KMBC-TV/Hearst Television’s ABC affiliate in Kansas City has an opening for an experienced Account Executive to join our team. We are looking for an AE who is highly motivated, can grow revenue on existing accounts and secure new advertisers to the station. If you have a proven track record of producing revenue on multiple platforms, please submit your resume HERE. Equal Opportunity Employer. General Sales Manager: We’re looking for a leader to run a major market sales department!! You must excel at all

normal GSM functions and in addition be willing to try new things and think out of the box. We want a strategist that can implement the strategy. We are looking for a competitive type that can build lasting relationships. Lead by example. Presentation skills are must too. All inquiries are confidential. Send resume to [email protected]. We are an EOE. WBTV CBS/wbtv.com/BOUNCE TV, in Charlotte,

NC seeks a Multi-Screen Marketing Specialist. Candidate must demonstrate a knowledge of agency negotiations, a track record of successful new business and internet development. Candidate must be detail-oriented, a problem solver and have professional presentation skills. One-two years broadcast experience required and a college degree preferred. Qualified applicants, please apply online https://careers-raycommedia.icims.com and attach resume and links to your work. No phone calls please. EOE/M/F/D/V LSM: KVAL-TV CBS 13 in Eugene, OR seeks a driven sales leader to motivate and direct a top performing sales

team. The Local Sales Manager must be on the streets with AEs and participate in the development of NTR and digital revenue. 2+ years of successful sales management experience, and a proven ability to work in a fast paced environment required. Candidates must be

creative, strategic and driven. Matrix and Wide Orbit skills preferred. APPLY HERE. Equal Opportunity Employer and Drug Free Workplace!

MORE AVAILS ONLINE @ SPOTSNDOTS.COMPlace a classified, email: [email protected]

THIS AND THAT Consolidating two markets, Sinclair is acquiring the FOX affiliation in South Bend, IN from Quincy Media, which will operate WSJV with two employees and air the Heroes and Icons network as FOX moves to a digital channel of Sinclair’s WSBT (CBS). And in Peoria, IL, Quincy is acquiring the ABC and CW affiliations to add to WEEK (NBC), ending their airing on Sinclair’s WHOI……New orders for U.S. manufactured capital goods rose 0.2% in June after falling 0.5% in May. Even so, the gain reported by the Commerce Department was weaker than expected and indicates that businesses remain cautious about spending.

7/27/2016

The Australian Olympic team is refusing to check into the Olympic Village saying it is ‘uninhabitable.’ Then after

checking into a Day’s Inn, the team said, ‘Never mind.’

Conan O'Brien

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RECALLED VEHICLES GO UNFIXED Announcing a recall doesn’t mean that every vehicle called back will actually be taken to a dealer to be fixed. Data from the National Highway Traffic Safety Administration (NHTSA), recently analyzed by J.D. Power’s SafetyIQ platform, shows that automakers and dealers are facing a storm of unremedied vehicle safety recalls. Over the past 20 years, more than 437 million vehicles have been affected by safety recall decisions in the United States, according to the NHTSA. In 2015 alone, more than 51 million vehicles were the subject of safety recalls, more than in any previous year. The NHTSA estimates that more than 45 million vehicles were the subject of safety recalls issued between 2013 and 2015 and are still not fixed. “The steady surge in recalls, combined with NHTSA’s stated goal of 100% recall completion rates, have made the number of unremedied recalls still on the road a critical statistic for automakers and dealers,” said J.D. Power VP of U.S. automotive Renee Stephens. According to her team’s analysis, unremedied vehicles are more common in older models. The total recall completion rate for vehicles from model years 2013 through 2017 is 73%. This compares with a completion rate of just 44% for vehicles manufactured between 2003 and 2007. Recall completion also varies by vehicle type. Among vehicle segments, Large/Work Vans have the highest overall recall completion rate, at 86%, followed closely by compact premium SUVs at 85%. This contrasts with the Mid-Premium Sports Car segment, which has a completion rate of just 31%, and with Large SUVs, which have a completion rate of 33%. Really big recalls present bigger completion challenges. The completion rate for individual recalls affecting more than one million vehicles is 49%. This compares with a 67% completion rate for individual recalls affecting fewer than 10,000 vehicles. The Power analysts say it is sometimes difficult to obtain a number of parts sufficient to launch large campaigns. Additionally, customers can more easily receive a targeted communication method, such as a phone call, with a smaller population of vehicles. When it comes to recall repairs, powertrain and electrical system recalls are most likely to get fixed. Of the major safety components, the groups with the highest recall completion rates are powertrain (71%), electrical (62%), and hydraulic brakes (66%). Air bags (despite lots of publicity) and suspension issues have the lowest completion rates at 47% and 48%, respectively.

JUDGE OKs VOLKSWAGEN DIESEL DEAL A federal judge yesterday gave preliminary approval to Volkswagen AG’s $14.7 billion settlement to compensate U.S. owners of its diesel-powered vehicles from the emission test cheating scandal. Owners of some 475,000 vehicles with 2-liter engines will get compensation plus the option of having the vehicles made compliant with emission standards—or having VW buy them back. The automaker’s attorney said in court that 250-300 people will be employed to oversee the settlement program.

WINNING AGAINST AD BLOCKERS A research report from the Interactive Advertising Bureau (IAB) shows two-thirds of U.S. consumers using ad blockers could be convinced to uninstall their ad blocking software on their computers. The study was conducted by C3Research, which surveyed nearly 1,300 computer users and 201 mobile users in the U.S., including a mix of those who employ ad blockers and those who don’t. Here are the top methods for influencing web visitors to turn off blockers on their computers: Preventing access to content alongside a notice stating that content is blocked

because of the use of an ad blocker; Ensuring that ads do not have auto-play audio or video in environments where they aren’t anticipated by consumers; and Making certain that ads do not block content. In addition, online sites can encourage visitors to get rid of ad blockers if the safeguard users from ads that are infected with malware and/or viruses—and if they can guaranteeing that ads do not slow down browsing. People who used to use ad blockers,

but don’t anymore, confirmed that preventing access to content was their top reason for disabling the software. IAB says the study’s findings confirm that consumers—whether currently blocking ads or not—are most annoyed by advertisements that delay or obscure access to website content. Long-video ads before short videos were the next most irritating to users, followed by ads that traveled with visitors as they scrolled down the page.

AUTOMOTIVE UPDATE Despite its U.S. sales troubles following the diesel emissions cheating scandal, Volkswagen AG is back on top worldwide according to a report from the Deutsche Welle news agency. The Center of Automotive Management in Germany estimates that VW Group sold 5.04 million vehicles in the first half of 2016, up 0.8% from a year earlier. Toyota was up 1.0% to 4.99 million and General Motors down 1.8% to 4.77 million……Automotive News says consumer and auto safety groups are asking the FTC to investigate Mercedes-Benz over a new TV ad. They say the spot for the 2017 E-class could mislead consumers by overstating the capability of automated driving systems.

ADVERTISER NEWSContinued from Page 1to just 0.6% for franchisees. The company-owned stores also recorded a small gain in transactions, which have been hard to come by in the restaurant business this year……It’s the time of year when amusement parks are heavy advertisers in some markets and Six Flags’ quarterly results suggest it could be a good year for that category. Overall attendance in the second quarter was up 2% (and adjusting for an early Easter the company says it would have been up 4%), with admissions per capita and in-park spending per capita also up 2% for each. And efforts to upsell guests to multi-visit passes have produced an 11% gain in season passes and its membership program……Coca-Cola’s CEO cited “challenging macroeconomic conditions” for his company’s results although it was able to report a 1% gain in North American beverage sales in Q2. Sprite, Fanta and energy drinks showed gains to help offset declines for Coke itself, and smaller packaging that costs more per ounce gave some relief to the volume declines.

7/28/2016

I've been giving a lot of thought to running a

marathon. I'm not going to do it, just want ya to know I've

been giving it a lot of thought.

Larry the Cable Guy