CUTTING TV ADVERTISING HURTS SALES

3 downloads 261 Views 875KB Size Report
There's been growing evidence that digital advertising .... Local News Station, seeks a Digital Account Executive. ... o
The Daily News of TV Sales

Tuesday, March 8, 2016

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.

CUTTING TV ADVERTISING HURTS SALES LOST SALES THREE TIMES AD ‘SAVINGS’

There’s been growing evidence that digital advertising produces significantly lower ROI than television for consumer packaged goods (CPG) brands. Now independent research by 84.51° spells out just how much it costs CPG brands in sales when they shift TV budgets to digital in an attempt to “save” money. The study, conducted along with TiVo Research, found that most of the brands studied lost about three dollars in sales for every one dollar they had reduced television ad spend. The study analyzed 15 random brands that had reduced TV spending by at least 25% between 2013 and 2014. The brands analyzed by 84.51° (a consumer engagement consultancy owned by Kroger) covered a variety of categories including beverages, candies, snacks, ingredients and others. The research was sponsored by cable network owners Turner (part of Time Warner) and A+E Networks. Reduced TV ad spend led to a combined $94 million loss in return for 11 of the 15 brands, accounting for 69% of the 2013 incremental sales attributed to TV advertising. Brands averaged a 25% weekly reach, leaving 75% open to competition. And reduced TV ad spend resulted in reach and frequency declines for 11 of the 15 brands, leading to the drop in sales and ROI. On average, the 11 brands spent $3.1 million less on television advertising during the comparison period. At the same time they lost an average $8.6 million in sales. Average quarterly frequency fell from 11.6 to 6.8 per household. Previous TiVo Research studies have found that a frequency of three per week is typically optimal for maximizing ROI on TV spend. The report notes that three exposures per week equates to a 39 average frequency per quarter—“dramatically higher than the 6.8 average found in this study.” On average, the brands reached less than 7% of their purchasers in the optimal 3-5 weekly frequency range, leaving 93% of their markets open to being picked off by competitors. “This number was low to begin with in 2013 (8.4%), but declined further in 2014 as a result of reduced TV spend,” the 84.51° report stated. The conclusion from the report: “Cutting TV budgets may seem like an easy way to save money, but as this study shows, brands stand to lose more in sales than they stand to gain in media savings.” Continued on Page 2 www.SpotsnDots.com

ADVERTISER NEWS

Just as McDonald’s sales got a boost when it introduced all-day breakfast, Burger King may have hit a home run with its recent introduction of hot dogs. Nation’s Restaurant News reports that in a conference call the CEO of Carrols (BK’s largest franchisee) noted an “overwhelming response” to the menu addition, saying “We are selling between 80 and 120 grilled hot dogs per store per day” even before the start of advertising for the new item……In a related note, NRN says lower prices for beef have led restaurants to offer lower prices (such as BK’s 5 for $4 deal and Wendy’s 4 for $4 deal) or to use a higher quality of meat than previously offered. One purchasing exec expects more of the same with meat prices due to fall another 10-23% this year, depending on the cut of meat……Automotive News says February was the industry’s most fleet-heavy month in almost six years. We had reported last week about General Motors’ decision to cut back on fleet sales in order to concentrate on more-profitable sales, but fleet sales were up 39% for Fiat Chrysler, 42% for Ford and 54% for Nissan……Cadillac has a big launch coming up next month: the XT5 crossover replaces the SRX, which accounts for almost 40% of all Caddy sales in the U.S. While overall Cadillac sales trail luxury imports by a significant margin, the SRX was second in the midsize luxury crossover segment and was up 29% last year to over 68,000 sales……Abercrombie & Fitch had a 1% increase in same-store sales for the quarter that ended on 1/30, the first positive since the third quarter of 2012. It expects flat to slightly positive comps this year……American Eagle had a 4% same-store increase and expects mid-single digits gains this year. There’s some thought however that samestore gains for surviving stores may have been helped by the closings of other stores……Although same-store sales for domestic Ace Hardware members were up 4.6% last year, the co-op says most of its stores have missed fourth Continued on Page 3

NETWORK NEWS

AVAILS

The 68th Primetime Emmy Awards will be hosted Media General’s KRON4, the San Francisco Bay Area’s by Jimmy Kimmel and broadcast live from Los Angeles Local News Station, seeks a Digital Account Executive. Sunday, September 18, at 8:00 pm (ET) on ABC. Kimmel The DAE will identify, develop, and expand existing and previously hosted the Emmys in 2012. The Television new client relationships & key accounts, maintain close Academy will announce nominations for the 68th Primetime communications at various stages in the sales cycle including Emmy Awards during the morning of Thursday, July 14…… account updates, & provide weekly projections & forecasting FOX, Cumulus Media and dick clark productions are of future advertising. Strong oral, problem solving, writing, reteaming for the second annual American Country negotiation and presentation skills, extensive travel and long Countdown Awards, bringing country music’s longest- work hours required. Qualified applicants can APPLY HERE. running radio countdown show to FOX on Sunday, May Please indicate where you heard about this job opening. 1, at 7:00 pm (ET). The three-hour live Equal Opportunity Employer. event will honor the year’s best country KFOR, the Tribune-owned NBC music with performances, special affiliate in Oklahoma City, seeks a In Orange County, a college moments and awards……Geena Davis dynamic National Sales Manager to student ate In-N-Out for 30 has been cast in the series regular role lead our team. This individual will have straight days and only gained of “Angela Rance” in the FOX drama experience coaching and directing two pounds. That’s right, he pilot The Exorcist from 20th Century national sellers to grow market share went from 398 to 400. Fox Television, in association with and sell new revenue streams. Success Morgan Creek Productions. A modern in selling digital and NTR concepts reinvention inspired by William Blatty’s a plus. Three years television sales Conan O'Brien original 1971 book, The Exorcist is management experience and college described as a propulsive, serialized degree preferred. CLICK HERE, then psychological thriller following two very different men filter the job search by location (US-OK-Oklahoma City). This tackling one family’s case of horrifying demonic possession, will allow you to view all current postings for KFOR. EOE. Research Director, Boston: The Research Director and confronting the face of true evil. is responsible for providing research-based audience and competitive insights to the Business, Sales and Content SUNDAY RATINGS NBC, with Dateline, and FOX, with Bordertown, tied leadership of NBC Boston, Telemundo Boston and for the Nielsen 18-49 crown on Sunday night, while CBS, NECN. This person will manage all aspects of syndicated led by 60 Minutes, had the most viewers. NBC was at an audience research for the broadcast and digital properties, average 1.2 rating in Adults 18-49 and 3.3 in Households, with a primary focus on Nielsen ratings and audience with an average audience of 5.164 million. FOX was at 1.2 quality tools such as Scarborough, Simmons, etc. 18-49, 1.8 HH and 3.128 million; CBS 1.0 18-49, 5.5 HH CLICK HERE to learn more about this position, or visit and 8.589 million; ABC, with Once Upon A Time, 1.0 18- http://www.nbcunicareers.com/ and search for job number 49, 2.1 HH and 3.397 million; Univision 0.7 18-49, 1.2 HH 26179BR. Equal Opportunity Employer. and 2.042 million; and Telemundo 0.3 18-49, 0.4 HH and CMG and Tulsa Radio are seeking a Creative Services Writer/Producer. This person is responsible for 0.711 million. creatively promoting FOX23 News, as well as entertainment programming and community service efforts, for FOX23 and THIS AND THAT My41, while consistently comScore’s stock price plunged Monday after the reinforcing the stations’ ratings company announced it was delaying filing its brands. This includes annual report with the SEC to deal with “certain potential generating ideas for accounting matters.” The stock ended trading Monday individual spots or down over 33%......U.S. consumers used their credit cards campaigns—taking less in January. The Federal Reserve says outstanding a spot from initial consumer credit rose by a seasonally adjusted 3.58% in concept to a readyJanuary—the slowest pace since March 2013. The gain is for-air product. This position works closely with the News still an impressive number: $10.54 billion……Fiat Chrysler Department to clearly communicate the viewer benefit of a Automobiles has extended a six-week shutdown of its story, a newscast, or other station initiative. CLICK HERE to Sterling Heights, MI, plant to nine weeks to reduce the apply. EOE. supply of the slow-selling Chrysler 200 sedan. WNCN CBS North Carolina in Raleigh, NC is seeking a Digital Account Executive. This person will help develop, CUTTING TV ADVERTISING HURTS SALES comprehensive media solutions to successfully maximize Continued from Page 1 interactive (web and mobile) revenue from new and existing 84.51° also urges comprehensive ROI analyses for all advertisers to achieve or exceed sales budgets. A minimum marketing, noting that all media needs to be evaluated in a of three years sales experience with a demonstrated track broad context against sales and ROI to create the optimal record of success in new business development. Must have mix. “The results of this study should give brands pause excellent interpersonal, oral and written communication before cutting TV budgets: moving money out of TV skills. Apply at www.mediageneral.com/careers, job #NCNadvertising clearly results in negative sales impact.” 000414. No calls please. EOE/M/F/D/V. Pre-Employment Background/ Drug Screen required. PAGE 2 3/8/2016 The Daily News of TV Sales @ www.spotsndots.com

PROGRAMMATIC AD BUYING MOVING IN-HOUSE

AVAILS

A survey conducted by the Association of National General Sales Manager: Hawaii News Now, Hawaii’s Advertisers (ANA) and Forrester finds that the number leading multi-media company has an exciting opportunity of marketers using programmatic ad buying has exploded to join our great team! We are looking for a dynamic, since a previous survey in 2014, with 79% of respondents entrepreneurial sales leader with a proven record of saying they have made programmatic buys in the past consistent achievement in leading and building strong, year—more than twice as many as in the 2014 survey high performing sales cultures to become the leader of (35%). That growth has come despite serious concerns 30+ motivated and competitive account executives, sales among marketers about digital ad fraud and a perceived assistants and traffic personnel at KHNL (NBC affiliate) and lack of transparency. As a result of their concerns, 31% KGMB (CBS affiliate). Get full details and APPLY HERE. of respondents said they have expanded their in-house No calls please. EOE-M/F/D/V capabilities to manage and oversee KCCI-TV, Hearst Television’s programmatic ad buying. CBS affiliate in Des Moines, has an A company in Boston built Programmatic buying in the past opening for an experienced Local Sales a robot that can open doors, year was highest for online display, Manager. We’re looking for a leader with and can get back up if it's online video, mobile display, and mobile a proven track record of success in multipunched. They didn't MEAN video. In the next year, the media with platform sales. Ideal candidates should to test whether it can get up the most anticipated growth are social be highly organized, driven, disciplined after being punched, video, social display, mobile video and someone who enjoys creating a but well, it's Boston. and television. Respondents indicated high performance culture with strong that the leading benefits of programmatic accountability. Must be able to build and Jimmy Fallon buying were better targeting and realmaintain client relationships. Leadership time optimization. ability is essential. Candidates interested On the negative side, almost 70% of respondents cited should CLICK HERE to apply. Equal Opportunity Employer. higher bot fraud in programmatic buys as a concern. At the NBCUniversal in Dallas is seeking a Director of same time, varying numbers of respondents said a lack National Sales. This person will be responsible for managing of transparency regarding the costs associated within the all national sales efforts for the NBC owned TV Stations, the programmatic supply chain, a lack of inventory and data NBC-represented Comcast transparency, and a dearth of information about whether an Sportsnets and their agency reaps financial gains from the media seller by using digital platforms across the client’s funds all posed challenges. the Texas-Colorado “While programmatic buying indeed offers benefits, it Oklahoma-Kansas-Arkansas-Louisiana regions. The suffers from complexity and a lack of transparency,” said primary responsibility will be to effectively implement the Bob Liodice, president and CEO of the ANA. “And that is station groups’ collective strategy with all agencies and wasteful,” he said, adding that “the industry—and marketers advertisers in order to grow revenue and achieve business in particular—would greatly benefit from a rethink of the plan goals. CLICK HERE to learn more or to apply now. entire digital supply chain.” Equal Opportunity Employer. San Antonio Television, LLC seeks a Local Sales SYNDIE SNIPPET Manager to lead our local sales department in maximizing Recording artist Jason Aldean will open telecasts of the all sales opportunities, with an emphasis on multi-media 2016 New York Life ACC Men’s Basketball Tournament platform new business development. The LSM will on Raycom Sports’ ACC Network. Aldean’s song “Gonna collaborate with the Know We Were Here” will be featured in the opening video DOS in recruitment, montage to lead into each syndicated game. training and effective management of local DONE DEAL sales team, with Market veteran Dick Windsor is the new Local Sales oversight of new local Manager at Raycom Media’s WAFF (NBC) Huntsville, AL. business efforts and new business sales goals. 4-7 years broadcast sales experience to include broadcast, digital ADVERTISER NEWS sales and management experience preferred. CLICK HERE Continued from Page 1 for more info or to apply. EOE/drug free workplace. quarter sales opportunities. At its spring membership WKRN-TV, Media General’s ABC Affiliate in Nashville, meeting CEO John Venhuizen told attendees Ace has TN, is actively seeking a dynamic, career-minded Account spent exactly $0 on national TV advertising in December Executive. The ideal candidate is a motivated self-starter over the last 89 years, but this year has budgeted over $13 who has the ability to interact with and influence others in a million for November-December television. He also suggests positive manner. The ideal candidate is driven to generate members look for new and innovative merchandise, saying, results for local businesses and revenue for WKRN, “If all we sell is the same undifferentiated crap you can buy MeTV and its suite of digital properties. Applicants must online, we’re dead”……Research firm Acosta reports health demonstrate a track record of success and passion for and beauty care sales at grocery stores are improving after developing new business. CLICK HERE for more info or to years of decline, with about 18% of the $84 billion market apply now. No calls please. EOE. done there. MORE AVAILS ONLINE @ SPOTSNDOTS.COM PAGE 3 3/8/2016 Place a classified, email: [email protected] The Daily News of TV Sales @ www.spotsndots.com