Wednesday, January 27, 2016 TV 4TH QUARTER AD SPEND …



Wednesday, January 27, 2016

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TV 4TH QUARTER AD SPEND WAS STRONG

DIGITAL CONTINUED DOUBLE-DIGIT GROWTH

We reported last week (1/21) on the preliminary

December numbers from Standard Media Index (SMI).

Now the final tally is in and the month was even a little bit

better¡ªcementing a strong fourth quarter.

SMI says the total ad market was up 9% for December.

Following two vibrant months in Q4, television ad volumes

dipped 3% year-on-year in December. The decline was

primarily caused by challenging ratings seen across many

networks, and potentially affected by advertisers¡¯ decision

to ¡°front-load¡± their spend at the beginning

of the holiday season. The digital ad market

jumped by 34% in December, continuing the

strong growth seen throughout 2015.

¡°Rising consumer confidence and a

positive start to the new broadcast year

delivered a strong fourth quarter, which lifted

the total market into positive territory following

a lackluster first nine months of the year,¡±

said James Fennessy (pictured), SMI¡¯s chief

commercial officer. ¡°The overall market results

were definitely underpinned by excellent NFL

ratings and the new dollars from fantasy leagues. On the

downside, we see that soft ratings, especially in cable,

combined with challenges around digital¡¯s effectiveness

causing concerns and this impacted December¡¯s results.¡±

With data representing 80% of national ad spend,

SMI calculates that broadcast ad spend grew by 1% in

December 2015 and cable shed 4% in a year-on-year

comparison. Television delivered strong results for Q4;

total bookings were up 9% YoY for the period. Broadcast

rose by 13% compared to the same time last year and

cable jumped by 8% on a YoY comparison.

There was robust spending in the scatter and upfront

markets, SMI reported. The markets closed out the fourth

quarter with a 28% and 6% YoY increase respectively. A

look at the top six broadcast TV networks showed that ad

revenues increased by a combined 2% YoY in December.

Ad revenues for the same group of networks ended the

fourth quarter up by 14%, when compared to Q4 2014.

Cable networks ESPN, AMC and Discovery Channel

were standout performers in December, all attracting

double-digit percentage increases in December. Other

major cable networks fared less well due to poor ratings

in the month which resulted in double-digit percentage

declines for many of the leading networks.

Spending on digital advertising shot up 34% for

December, beefed up by increasing advertising spend on

video sites (74%), Internet radio (64%) and social media

sites (75%). SMI reports that out-of-home was down 4%

PAGE

YoY in December; newspaper up

8%;1 magazines down

3%; and radio down 1%.



ADVERTISER NEWS

Glacier Restaurant Group has purchased Max &

Erma¡¯s from American Blue Ribbon Holdings. Nation¡¯s

Restaurant News says the buyer has plans to revitalize the

struggling casual-dining chain. The sale news comes just a

week after the seller said it closed 13 underperforming Max

& Erma¡¯s locations, leaving the chain with 51 units in 10

states, mostly in the Midwest. The chain had 106 locations

as recently as 2008. Glacier, based in Whitefish, MT,

owns four other restaurant concepts: MacKenzie River

Pizza Grill & Pub, Ciao Mambo, Craggy

Range Bar & Grill and Latitude 48¡­¡­A

U.S. Bankruptcy Court judge in Delaware has

rejected a bid by founder Dov Charney¡ª

backed by a couple of big investors¡ªto

regain control of American Apparel. Instead,

the judge approved a reorganization plan

backed by current management to take the

company private under the ownership of its

major creditors¡­¡­Procter & Gamble had

another tough quarter, with sales down 9%

to $16.9 billion. The packaged goods giant

blamed foreign exchange rates, along with acquisitions

and divestitures¡­¡­Quarterly sales rose 4% for Coach,

Inc. to $1.27 billion. North American Coach brand sales

were down 7%, but grew 4% internationally¡­¡­Starbucks

is giving up on its effort to make Teavana ¡°tea bars¡± as

trendy as its coffee dispensaries. Starbucks, which bought

Teavana in 2012 for $620 million, will continue to operate

350 shops selling tea and related appliances, but drop the

tea bar concept, which sold brewed tea and food items

to enjoy while sipping¡­¡­The CEO calls 2015 a tough

year, but off-road vehicle and motorcycle maker Polaris

Industries reported full year 2015 sales up 5% to a

record $4.72 billion. However, Q4 sales were down 13%

to $1.11 billion as the warm weather kept a lid on interest

in snowmobiles¡­¡­Hyundai Motor Co. had record Q4

shipments of automobiles in the U.S., but incentives to lure

in buyers rose sharply. Meanwhile, the Korean car maker

is still seeking ways to turn around sales declines in China.

So net profits for the quarter fell 7.7% to $1.3 billion¡­¡­

Franchised gourmet popcorn shop Doc Popcorn says

retail sales grew 13% in 2015 as the brand pushed past the

100-unit mark. In addition to malls, stadiums, convention

centers and farmer¡¯s markets, Doc Popcorn signed an

innovative deal to open co-brand units with Dippin¡¯ Dots in

the Fabulous Freddy¡¯s car wash and convenience store

chain throughout the Southwest...... Supermarket News

reports that sales rose 9.9% at the Albertsons stores

formerly operated by Supervalu in the most recent quarter.

The company¡¯s three other segments were up as well as it

prepares to raise about $1.5 billion in an IPO.

CABLENET CHATTER

CPG INDUSTRY STRUGGLED IN 2015

Discovery Communications' Animal Planet and

An annual summary by IRi finds that 2015 was another

Lionsgate have partnered to acquire the rights in the U.S., challenging year for the consumer packaged goods (CPG)

Canada and the UK to the documentary film sensation industry. Volume sales continued to slide, and dollar sales

Million Dollar Duck. Animal Planet has acquired television growth was fed largely by inflationary pricing trends.

rights to the film while Lionsgate will distribute the film on a When looking across channels, mass merchandisers and

limited basis theatrically and on digital home entertainment supercenters posted sharper-than-average declines and

and packaged media. Directed by Brian Golden Davis, the club channel showed some resilience. The grocery and

the film had its world premiere on Sunday at the 2016 drug channels held volume flat, outperforming the industry

Slamdance Film Festival and will air on Animal Planet in the average of negative 1.7%.

fall following its theatrical run. Million Dollar Duck dives into

The grocery channel continues to capture the lion¡¯s

the wonderfully eccentric world of the

share of total CPG spending at 43%,

Federal Duck Stamp Contest¡ªthe only

while club seized 11%, drug took 7%,

juried art competition run by the U.S.

mass/super picked up 4% and dollar

A recent poll found that

government¡­¡­NBC Sports begins

stores netted 2%. Sales momentum

10% of college graduates think

its comprehensive 2016 NHL All-Star

continued to be slow across CPG

Judge Judy once served on

Weekend coverage in Nashville, this

aisles. Performance was weakest

the Supreme Court. To be fair,

Friday at 8:00 pm (ET), with a primetime

in the frozen food sector, where unit

it¡¯s the same 10% that think

special featuring NHL All-Star players

sales declined 1.5%, and strongest in

Justice Antonin Scalia is

and performances from top country

beverages, where unit sales increased

the Cake Boss.

music stars, when NBCSN presents

2.9%. Growth was weak in non-food

NHL All-Star Friday Night: Live in

departments. The tobacco sector

Seth Meyers

Music City. Kathryn Tappen will cowas boosted by electronic smoking

host Friday night¡¯s one-hour special

products, which grew 23.9% for the

alongside Kimberly Perry, lead singer

year, and the healthcare department

of The Band Perry, from Bridgestone Winter Park in grew 2.1% thanks to the latest new products that help

downtown Nashville. The event will feature interviews and consumers tackle common ailments and conditions, such

appearances from numerous NHL All-Stars and All-Star as colds, allergies and weight control.

Game celebrity coach Vince Gill and Nashville Predators

Private label share of overall CPG spending changed

defenseman Roman Josi will give viewers a tour of the very little during 2015 and remained relatively flat at the

Gibson Guitar Factory. NHL All-Star Weekend coverage store level. Some CPG categories that did show some

continues on Saturday at 7:00 pm (ET), with the NHL Skills notable changes included refrigerated meats, with a 3.2%

Competition, followed by the debut of the 3-on-3 format unit sales increase, and fresh eggs, with a 3% increase.

of the NHL All-Star Game on Sunday afternoon at 4:30

IRi¡¯s analysis says consumers will remain entrenched

pm (ET)¡­¡­Esquire Network's new series Team Ninja in their conservative purchase behaviors in 2016 even

Warrior debuted Tuesday, January 19 as the most watched though one-third of Americans feel their financial situation

series premiere in the network's history. In its first week, 1.3 will improve this year. 57% of consumers will make their

million viewers tuned into the premiere episode across all purchase decisions before they enter the retail store, so

airings¡­¡­Nickelodeon is teaming up with the National marketers must continue their efforts to engage shoppers

Football League (NFL) to give kids and families an insider's early in the planning process.

look at this year's milestone Super Bowl 50 with exclusive,

specially produced coverage of the events leading into the AIRBAG RECALL EXPANDED (AGAIN)

Big Game, from Super Bowl Opening Night to Kids' Day

The National Highway Traffic Safety Administration

and the NFL Experience. The net's Nickelodeon at Super (NHTSA) has added five million more vehicles to the recall

Bowl Week event begins Monday, February 1, airing across list for potentially defective Takata airbags, bringing the

Nickelodeon, Nicktoons' NickSports programming block, total to 28 million. The latest recall expansion follows the

as well as appearing on the channels' websites, social first death in a Ford Motor Company vehicle attributed to

media and the Nick App.

an airbag inflator¡ªthe driver of a 2006 Ford Ranger pickup

who was killed December 22 in South Carolina. That¡¯s the

NEW SPONSORS FOR X GAMES ASPEN

10th death in all blamed on Takata inflators.

AT&T, Coors Light, Intel and LifeProof have joined

The latest recall expansion included vehicles made by

the roster of official sponsors for X Games Aspen, taking Volkswagen, Audi, Mercedes-Benz, Ford, Saab, Mazda

place in Buttermilk Mountain in Aspen Snowmass, January and Honda.

28-31, with live coverage on ESPN and ABC. They join

returning sponsors America¡¯s Navy, GoPro, Harley- THIS AND THAT

Davidson, Jeep brand and Monster Energy. Additional

Apple sold 74.8 million iPhones in the most recent

sponsors include Oakley, Polaris, Skype and Xbox. The quarter¡ªthe slowest growth ever¡­¡­CAA Sports, a

2016 event will feature the world¡¯s top action sports athletes division of Creative Artists Agency (CAA), has acquired

competing for X Games gold and prize money, a blend of brandrapport, a London-based sports marketing agency.

acclaimed musical artists and a festival village that offers a brandrapport works with such brands as Allianz, Jaguar

complete youth cultural experience for fans of all ages.

Land Rover, Nestl¨¦, Prudential and Samsung on

sponsorship rights and other engagement. CAA Sports is

PAGE 2

already involved with such brands as JPMorgan Chase,

Emirates Airline, Time Warner Cable, Farmers, Zurich

and Mondel¨¥z.

Wednesday,

January

27,

2016



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