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sales@spotsndots.com Copyright 2018.The Daily News of TV Sales Friday, September 6, 2019

ANALYST: DIGITAL SPEND NOT AT TV’S EXPENSE Online advertising spending may be expanding at multiples of the pace of television’s growth rate, but media analyst Michael Nathanson says he’s concluded that the two mediums are appealing to a different base of advertisers, and he increasingly no longer views digital as an existential threat to TV. That’s because the big brands and major categories like auto and retail are still hooked on television ads, while small businesses make up more of the digital spending. “Although online’s growth may have initially seemed like a threat to TV ad budgets, TV has instead remained resilient,” he concludes. MoffettNathanson this week forecast local broadcast ad revenue will decline 8.5 percent in 2019 and local cable will be down 10.6 percent, but that’s largely due to the lack of political spending or an Olympic event. It projects both will grow in 2019. Looking out over the past several years, the firm notes internet ad spending grew by $51 billion between 2010 and 2018, while total TV ad sales increased $14 billion. But Nathanson says slower growth in TV ad spending during the past four years doesn’t fully account for the sharp acceleration in internet spending. “It appears that digital is drawing spend from sources outside of traditional media buckets,” he says. To prove the point, Nathanson says the top 100 advertisers account for 50 to 70 percent of ad sales for TV while accounting for 20 percent of Facebook’s ad sales. “We continue to believe that the long tail of small and medium-sized business is bringing new ad dollars into the market, fueling digital’s growth without eating into TV ad budgets,” he says. Even more intriguing is that in his forecast for the current four-year cycle covering 2018-2022, Nathanson forecasts advertising spend to grow by $78 billion to $293 billion by 2022. But he thinks online’s share of new ad dollars will contract as TV holds steady at its current level of spending. Nathanson says core advertisers are keeping TV ad spend afloat as they seek both the broad reach of television and a brand-safe environment, even though viewership continues to fall on TV. “Large national advertisers looking for broad reach still need TV, and consequently are paying higher prices for those ad slots,” he writes in a report to clients. In fact, he says TV’s revenue growth is outpacing viewership gains — and the gap is widening between the two, although he notes some of that may be because Nielsen isn’t fully capturing online viewers. Even as Nathanson believes TV is holding up just fine, he says the industry’s growth is limited by the spending patterns of national advertisers, which could spell trouble if there’s a recession. Cost-cutting initiatives have brought greater

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TELEVISION, ONLINE ADVERTISING PATHS DIVERGINGADVERTISER NEWS A Justice Department settlement that permits CVS Health’s acquisition of health insurer Aetna won approval in a federal court this week. CVS completed the almost $70 billion acquisition after winning federal approval about a year ago, but subsequent challenges by groups concerned about competition led to the federal court review, The Wall Street Journal reports... Meanwhile: CVS will contribute $50 million to efforts to curb vaping by young people, help

more consumers quit smoking and participate in other efforts designed to encourage a tobacco-free generation... Taco Bell will roll out the new Toasted Cheddar Chalupa

nationally next week, as well as in select global markets, Restaurant Business online reports. The latest version of the chalupa, a menu item first introduced in 1999, will have cheddar cheese baked into the outer shell and a filling of meat, cheese, lettuce, tomatoes and sour cream... Sears is cutting about 250 employees at its Hoffman Estates, Ill., headquarters beginning in late October, the company says in a letter to the Illinois Department of Commerce & Economic Opportunity. The company has struggled to find its footing in the rapidly changing retail space after filing for bankruptcy protection in October 2018, Crain’s Chicago Business reports. In early August, Sears’ parent said it would close 26 stores by October, including two Chicago-area locations... New tariffs on consumer goods from China are forcing retailers to find ways to minimize the impact on shoppers, including sourcing goods elsewhere and trimming costs. One strategy embraced by retail giant Target: Get someone else to foot the bill. Days before new tariffs went into force Sept. 1, Target sent a letter to suppliers saying that it “will not accept any new cost increases related to tariffs on goods imported from China,” according to a memo signed by Mark Tritton, the retailer’s chief merchandising officer. Target and other store chains had previously warned the U.S. government that consumers would be on the hook, with higher prices at checkout... The Michaels Companies has come out of the gate early with its holiday hiring plans. The arts-and-crafts retailer says it will hire approximately 15,000 seasonal positions across its U.S. and Canada stores and distribution centers in preparation for the 2019 holiday season. The company will host a national seasonal hiring event in more than 1,250 stores across the U.S. tomorrow. Michaels owns and operates more than 1,250 stores in 49 states and Canada, long with a variety of digital platforms... Amazon is bringing its AmazonFresh delivery service to Prime members in Indianapolis. Online orders for tens of thousands of fresh products, including meat, seafood, produce and everyday essentials, will be available for one- to two-hour delivery from AmazonFresh. AmazonFresh orders can also be placed via the Alexa voice assistant, which can learn and remember customers’ past purchases and favorite selections. Prime members can access AmazonFresh for $14.99 per month as an add-on to their Prime membership.

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

AVAILS FOX 5 Atlanta is looking for a dynamic leader for our Local Sales Manager position. The LSM is responsible for managing local sales activities for broadcast and digital, and is responsible for the supervision of the sales personnel at the local level. Bachelor’s degree from a four-year institution in a related field, plus five years of experience with local and/or national sales experience, and two years of supervisory experience required. CLICK HERE for more info or to apply now. When applying, please mention where you saw this ad! EOE/M/F/V/D.

WISH-TV/WNDY-TV/wishtv.com, Indianapolis, seeks an outgoing Account Executive with a self-starter mentality and a history of provided exceptional customer service. This individual must be able to develop and coach custom solutions for clients across television and digital platforms. Emphasis on new business development will be key for this individual where high earning potential and flexible work life balance can be met. Must embrace technology

and exude a positive attitude at all times. Applicants should CLICK HERE to apply. EOE. KSDK, 5 On Your Side in St. Louis, is seeking a Digital Sales Manager to develop and execute a winning sales strategy that delivers customized customer solutions through an integrated suite of media platforms. Candidates will have a deep knowledge of digital sales and the ability to lead and mentor a team to ensure the station achieves all digital revenue goals. Five years of advertising, media or digital sales experience, strong communication skills and the ability to multi-task and follow through on projects to completion are required. CLICK HERE for more info or to apply now. EOE. WHDH 7NEWS Boston seeks a Sales Account Executive. The AE will generate new and service existing local accounts, ensuring all financial goals of the TV station are being exceeded, while developing and maintaining relationships with agencies and clients. Must have the ability to manage and enhance direct relationships with agencies and clients to promote station image and perception. The ability to identify the needs of advertisers and prepare custom sales presentations with solutions to those needs is necessary. Qualified applicants, send resume to: human_resources@whdh.com. EOE.

See your ad here Monday! CLICK HERE for details.

ADP: PRIVATE SECTOR ADDED 195,000 JOBS The nonfarm private sector in the U.S. added over 50,000 more jobs in August than economists expected, helped by strong growth in midsize businesses and in the service sector, The Wall Street Journal reports. The private sector added 195,000 jobs last month, according to the ADP National Employment Report. Economists polled by The Journal were expecting 140,000. August has seen the most growth in private-sector jobs since April when the sector added 255,000. The ADP Research Institute puts out its national employment report on a monthly basis with Moody’s Analytics.

PEPSI BACK AS SUPER BOWL HALFTIME SPONSOR Pepsi is reaffirming its commitment to the National Football League, renewing its Super Bowl halftime sponsorship deal, while launching a new campaign that includes a tie-in to NBC’s Sunday Night Football. The soda brand, which took over as halftime sponsor in 2012 from Bridgestone, has re-upped until 2022. The brand has a separate deal dating back to 2002 that makes it the NFL’s official soft-drink sponsor. That deal, which was renewed in 2011 until 2022, gives it the rights to use NFL imagery in its ad campaigns. The newest effort, from Goodby Silverstein & Partners, is called “Always Be Celebrating.” It includes two national TV ads using real footage of player touchdown celebrations set to the “Cha Cha Slide” by DJ Casper. The brand will also be included in the show opening of Sunday Night Football, which features Carrie Underwood and Joan Jett performing a revamped version of the “Waiting All Day for Sunday Night” theme song. Pepsi had a similar deal with NBC last season.

NETWORK NEWS Deadline reports that ABC has landed the soapy musical drama series House of the Rising Sun with a put pilot commitment. R&B singer-songwriter Raphael Saadiq will contribute music for the potential series, which is expected to incorporate the famous folk song whose title mirrors the name of the show. House of the Rising Sun is described as a Romeo and Juliet-style soap about two feuding families set against the backdrop of the famous New Orleans nightclub... Big Brother is returning for another season on CBS next year, and so is Julie Chen Moonves as the host of the long-running reality show. The former The Talk co-host has inked a deal with the Viacom-merging company to do Season 22 of Big Brother. The next installment is slated to air next summer... CBS says the seventh season of CBS Dream Team... It’s Epic!, the three-hour Saturday morning block, will premiere Saturday, Sept. 28 from 9 AM to noon (ET). This season, two new series will join the four returning shows in the lineup: Mission Unstoppable, hosted by actress Miranda Cosgrove, and the live action half-hour Best Friends Furever with Kel Mitchell... After 30 years with 60 Minutes, correspondent Steve Kroft is set to retire, but not before a final appearance on this Sunday’s special hour devoted to his career. The special episode airs at 7 PM Sunday on CBS. The program contains highlights from Kroft’s 60 Minutes career. The newsmagazine, in its 52nd season, will present such Kroft moments as his report on Chernobyl and interviews with Clint Eastwood, Justice Clarence Thomas, Beyoncé and Jerry Seinfeld... CBS has put in development Einstein, an hour-long procedural about a brilliant detective. Written by Monk creator Andy Breckman, Einstein is about the brilliant but directionless great-grandson of Albert Einstein, who spends his days as a comfortably tenured professor, until his bad boy antics land him in trouble with the law and he’s pressed into service helping a local police detective solve her most puzzling cases.

9/6/2019

Conan O’Brien

A new study found the safest city to travel to is Tokyo, Japan. Unless, of course, you’re a dolphin.

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

ESTIMATE: DORIAN TO COST RETAILERS $1.5B Retailers in the southeast can expect Hurricane Dorian to threaten the typical boosts they see from shoppers on the tails of Labor Day weekend and the back-to-school season, CNBC reports. Instead, that spending will go to grocery store chains and home improvement centers like Lowe’s and Home Depot as consumers stock up on necessities. Mass merchants like Target and Walmart will also see a boost, especially because consumers might turn to their recently rolled out same-day or next-day delivery services to purchase goods.

Consumer spending is expected to decline as much as $1.5 billion, according to data analytics firm Planalytics. That factors in the gains from the home centers, grocery chains and convenience stores as consumers stock up emergency necessities like plywood, flashlights, water bottles or canned goods. Foot traffic at apparel stores could fall 25 percent while visits to outlet centers will decline 32 percent, Planalytics

estimated. Restaurant traffic is expected to decrease 14 percent.

TELEVISION, ONLINE AD PATHS DIVERGING(Continued from Page 1)scrutiny to marketing budgets across a number of industries. That can be seen in the 7 percent decline in retail ad spending last year and an even bigger 10 percent cutback by automakers in their marketing budgets. Those two categories represent nearly one of every four ad dollars spent in the U.S. And while that hits national outlets the hardest, it trickles down to the local level too. Still, Nathanson’s optimistic about the industry outlook. “While TV continues to face headwinds from falling viewership, rising prices and limited spending growth from the largest national advertisers,” he says, “it has remained resilient and is performing better than we would have expected with such strong shifts in consumer behavior.”

9/6/2019

B.B. King

Nobody loves me but my mother, and she could be jivin’, too.

WEDNESDAY NIELSEN RATINGS - LIVE + SAME DAY

LIVING IN THE ERA OF CONTENT OVERLOAD The amount of available video content has increased significantly over the years, Harmelin Media says, noting that there were 209 scripted shows in 2009 and 495 in 2018. Streaming services have now surpassed the broadcast networks with 160 new shows versus broadcast’s 146, with 144 for basic cable and 45 for premium cable. In 2018-19, the broadcast networks renewed 12 new shows, the lowest number in recent years. While people are spending more time watching video, the amount of content has led to fragmented ratings, and the networks don’t have the patience to stick with shows that aren’t performing well. Somewhat ironically, TV shows that have been cancelled by the networks have been picked up by streaming services. Last year, Netflix picked up Fox’s Lucifer and ABC’s Designated Survivor. That trend will continue with ABC’s Whiskey Cavalier, NBC’s A.P. Bio and Amazon Prime Video’s Sneaky Pete all being pitched to other networks or platforms. This coming season, the networks will premiere 17 new shows in the fall (nine dramas, seven comedies and one reality show). Additionally, 17 shows will be introduced at various points throughout the season.

GLOBAL SVOD SUBS SET TO DOUBLE: STUDY A study from Digital TV Research forecasts that the number of gross subscription video-on-demand (SVOD) subscriptions will likely increase by 91 percent, or 462 million, between 2018 and 2024 to reach 970 million, with 2019 alone seeing 124 million additions. The SVOD Forecasts Update also predicts that by 2024, SVOD leader Netflix will contribute 23 percent of the global total, Amazon Prime Video 13 percent and the forthcoming direct-to-consumer services Disney+ and Apple TV+, 8 percent and 1 percent, respectively. Digital TV Research calculates that these four companies will control 45 percent of the global total. This leaves a substantial market for others, including 30 percent of global subscriptions in China, where none of the four global players will operate, Rapid TV News reports. Yet the study also finds that even though the company will add 79 million subs between 2018 and 2024 to take its total to 219 million, Netflix’s dominance of global SVOD is falling. Netflix’s revenues are set to more than double from $15 billion in 2018 to $35 billion in 2024 – up by 134 percent despite subscriptions only climbing by 57 percent. Disney+ will generate $7.4 billion by 2024, ahead of Amazon Prime Video with $6 billion.

THIS AND THAT YouTube will be paying the U.S. government $170 million for violating laws related to children’s privacy, and will also be implementing a series of measures to prevent further issues. These include limiting ads and data collection related to kids’ videos; identifying child-targeted content with machine learning; offering $100 million to creators producing thoughtful material for minors; and requiring channel owners to label videos directed at children.