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The Daily News of TV Sales
Monday, July 1, 2019
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TVB: CORE AD SPEND `UP SLIGHTLY' SO FAR THIS YEAR
LANZANO SAYS AUTO `BETTER THAN EXPECTED' Today marks the start to the second half of the year, and
so far 2019 has seen television holding its own considering it's been a year without the benefit of political or Olympic advertising dollars.
"It's a little bit better than I thought it would be," says TVB president Steve Lanzano. "Broadcasters felt pretty good about the first half of the year." While first-quarter comparisons are difficult because a year ago the Winter Olympics impacted marketers' spending, the data from Q2 sheds more light on 2019. Core ad spending is "up slightly," according to Lanzano. While that's to be expected considering advertisers don't face the risk of displacement from political or Olympic ads in an odd-numbered year, there are also encouraging signs. Lanzano credits improved spending in categories including telecom, insurance, health clinics and hospitals, and even fast food -- a category he says has been a "problem child" for local TV in recent years as QSR brands trimmed 3-4 percent from their spot budget year after year. What's changed is that during the first half McDonald's increased its local spending versus a year ago. Whether it's a turnaround, a pause or a bottom for the category, Lanzano says the industry probably won't really know until there are several more quarters of data to digest. No category matters more than automotive, and that figure is tracking behind a year ago. "It's not up, but it's better than expected. We're doing much better than other media, according to Kantar," Lanzano says. One culprit is that both General Motors and Fiat Chrysler changed mediabuying agencies, and he says that can sideline spending as the transition between the shops is made.
"What is really moving the market, especially for dealers, is their pre-owned vehicles," says Lanzano. "There's about 4 million pre-owned vehicles coming off lease this year and we're seeing some of the dealerships start advertising their pre-owned business, which is not something they have traditionally done."
He points to a NADA survey that shows 40 percent of dealerships say they're planning to start advertising their used-vehicle business.
"The biggest issue is the price of vehicles is at an all-time high. A lot of it has to do with 70 percent of the car sales are SUVs versus sedans," Lanzano says. Research has shown when the gap between the monthly payment for a new and used car is $110 or more, buyers steer toward the preowned lot. Depending on what happens with threatened tariffs, that gap could grow even wider.
Yet even as new vehicle sales have been essentially flat so far in 2019, other than a few zero-percent financing offers, most brands have held back on incentive programs. "They're really not pushing the incentive market, which
(Continued on Page 3)
ADVERTISER NEWS Walmart has expanded next-day delivery to 13 additional
states as it gears up for back-to-school season, with plans to offer the service in about 75 percent of the U.S. by year's end, Bloomberg reports. The offer launched in May in three markets in the West, and it will now be available in parts of the South and Midwest... Online sneaker marketplace StockX has achieved a valuation of more than $1 billion through its latest round of financing. The rise of such resale sites has manufacturers and retailers rethinking
their distribution strategies amid the buzz generated by devoted "sneakerheads," The New York Times reports... Four Los Angeles Nordstrom stores will add Rent the Runway drop boxes to give the fashion rental platform's subscribers a way to have their returns and new requests processed more quickly. The feature is expected to drive foot traffic to the stores, and Rent the Runway expects to put boxes in more Nordstrom stores in other states in the future... Abercrombie & Fitch is expanding its rollout of CBD-infused lip balms, sugar scrubs and other body care products from Green Growth Brands to about 160 of its more than 250 stores, CNBC reports. The hemp-derived ingredient was legalized by Congress late last year and the CBD industry is on track to hit $22 billion in sales within three years, according to Brightfield Group... Shoppers will soon be able to buy now, pay later at H&M stores in the U.S. Chain Store Age reports the fast-fashion giant and global payments provider Klarna are expanding their partnership to include the U.S. market. The agreement, which includes H&M's online and in-store channels, is designed to provide "frictionless and flexible payments." It includes Klarna's "Shop Now, Pay Later" option. It also includes a streamlined post-purchase experience for deliveries and returns. The new feature will be available only to members of H&M's loyalty program. It's expected to go live in the U.S. this fall... Pepsi says starting early next year its Aquafina brand of water will be test-marketed in aluminum cans at some retailers and food-service providers. Pepsi acknowledges that while many kinds of fizzy water already comes in aluminum containers, drinking still water from a can would be "a newer behavior" for many people. In recent years, public sentiment has turned against single-use plastic items, which can end up accumulating in landfills or floating in oceans. The New York Times says that across the world, only 9 percent of all the plastic ever made has been recycled; by contrast, 67 percent of the aluminum bought by consumers every year is reused... The RealReal, a secondhand luxury retailer, saw its stock jump last week after raising $300 million in its initial public offering. According to CNBC, its practice of having a staff of 100 experts to verify its high-end products aren't counterfeits has led The RealReal to make $207 million in revenue last year. Founded in 2011 by Julie Wainwright, The RealReal is a primarily online marketplace for authenticated luxury goods.
NETWORK NEWS
AVAILS
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Quarterfinal. The U.S. women now advance to tomorrow's staff recruitment and developmental skills, as well as strong
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PEW: 5.3M WATCH NETWORK EVENING NEWS
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CBS and NBC ? has been steady in recent years.
The average audience for the evening newscasts for ABC, 18M+ TUNE IN FOR SECOND DEMOCRATIC DEBATE
CBS and NBC remained relatively stable in 2018, with 5.3 Thursday's Democratic debate averaged 18.1 million total
million viewers tuning in on average, compared with 5.2 viewers across NBC, MSNBC and Telemundo, according
million in 2017, according to Comscore data.
to Nielsen, better than the 15.3 million who watched
Average audience for morning news programs from ABC, Wednesday, Broadcasting & Cable reports. Among the
CBS and NBC declined over the past year, down 4 percent 18.1 million, there were 5.3 million viewers 25-54 and 4.4
in 2018, to about 3.2 million from 3.3 million.
million in the 18-49 demo.
Average audience for the network TV Sunday morning The live stream saw 9 million viewers and 14 million video
political talk shows on ABC, CBS, Fox and NBC ? This views across all platforms Thursday. The debate ran from 9
Week, Face the Nation, Fox News Sunday and Meet the to 11 PM (ET) both nights.
Press, respectively ? declined 8 percent in 2018, to about Wednesday featured Cory Booker, Elizabeth Warren,
2.3 million average viewers.
Beto O'Rourke, Amy Klobuchar, Julian Castro, Jay
The average audience for the four newsmagazine shows Inslee, Tulsi Gabbard, Tim Ryan, Bill de Blasio and John
aired by the networks ? ABC's 20/20, CBS's 60 Minutes and Delaney. Thursday included Marianne Williamson, John
48 Hours, and NBC's Dateline ? declined in 2018, down 8 Hickenlooper, Andrew Yang, Pete Buttigieg, Joe Biden,
percent from 2017.
Bernie Sanders, Kamala Harris, Michael Bennet, Kirsten
Combined advertiser expenditures for the evening broadcast Gillibrand and Eric Swalwell.
news programs, ABC's World News Tonight, CBS Evening NBC News said Thursday was the highest-rated Democratic
News and NBC Nightly News, were $518 million in 2018, presidential primary debate, surpassing one in October 2015
a decline of 6 percent compared with 2017, according to by 2.6 million total viewers and 378,000 in the 25-54 demo.
estimates from Kantar Media. (This data reflects the amount The moderators were NBC's Lester Holt, Savannah
of money paid by advertisers, rather than the amount of Guthrie, Chuck Todd, Rachel Maddow and Telemundo
revenue actually earned by networks.)
anchor Jose Diaz-Balart.
7/1/2019
The Daily News of TV Sales @
PAGE 2
KANTAR SEES POLITICAL AD SPENDING AT $6B
TV AD SPEND UP 2% IN MAY, SMI SAYS
The 2019-2020 election cycle is expected to generate $6 A surprisingly strong May, particularly in terms of national
billion in political advertising spending, according to a new TV ad dollars, is evidence of positive results for the upfront
report from Kantar. Broadcasters are expected to attract TV ad market, according to Standard Media Index. Average
$3.2 billion in political ad spending, with cable picking up weekly ad spending on national TV networks grew 2 percent
$1.2 billion.
-- from $895 million to $912 million.
Digital media is expected to get a 20 percent share of "We continue to see strengthening conditions in the second
spending, or $1.2 billion, up from four years ago. Radio will quarter for the national TV market after a soft first quarter --
get $400 million in political ad spending.
even factoring in the Olympics inflated annual comparison
"Overall, an extended Democratic primary fight would likely (in the second quarter 2018)," said James Fennessy, CEO,
be a short term, second quarter 2020 sugar high," said Steve Standard Media Index. "In fact, May 2019 has delivered its
Passwaiter, general manager for the
strongest seasonally adjusted result
CMAG service at Kantar's media division.
since we began measurement."
"In fact, a long primary and a Democratic
Fennessy says these findings support
convention fight would most likely reduce
strong current results for upfront TV
total campaign spending as it would
I'm a happy person
ad negotiations for national TV, where
reduce the amount of time the eventual
but an angry citizen.
single-digit percentage higher dollar
Democratic nominee would have to raise
volume and double-digit percentage
and spend money for the general election.
pricing gains -- the cost per thousand
Kantar said its estimates include only ads
viewers (CPMs) -- have been seen for at
sponsored by candidates for federal office, and not by political action committees.
Lewis Black
least three networks: CBS, the CW and the Hallmark networks.
The tidal wave of political spending
SMI says total dollar gains for national
creates a crowded situation for brand advertisers. In the last TV entertainment programming was up 1.4 percent to $2.6
election, spot advertisers saw their share of TV inventory fall billion for the entire month, while sports programming was
from 77 percent to 51 percent.
4.7 percent higher to $600 million and news programming
Political advertisers tend to flock to local news. During the 1.2 percent more at $400 million.
final weeks of the prior election season, Kantar also found Entertainment programming benefited from the last episodes
that political advertising took up 43 percent of available slots of CBS' The Big Bang Theory, pulling in $37.8 million for the
on local news in battleground markets, as compared to just month versus $15.6 million for May 2018. Syndicated reruns
10 percent at the start of the season.
on TBS totaled $25.6 million versus $29.7 million the year
Kantar found that as a result some advertisers, 11 percent, before, when there were fewer airings.
stopped spending on local TV during the last phase of the Another positive sign for a strong upfront: Scatter ad sales
campaign. Most of the others cut the number of spots they for May were up 7.2 percent per week versus May 2018.
bought.
For TV network groups overall, NBCUniversal took a
18.7 percent share of all national TV dollars; Disney-
TVB: CORE AD SPEND `UP SLIGHTLY' IN 2019
ABC Television, 16 percent; WarnerMedia, 12.1 percent;
(Continued from Page 1)
Discovery, 11.9 percent; and CBS, 9.7 percent.
means you have to move inventory by advertising, which is
good for us," Lanzano says.
THIS AND THAT
Beyond watching how the automobile market moves in the AT&T has made a $500,000 donation to Locast, the web-
second half, Lanzano says the TVB is keeping tabs on how based service that provides local TV signals in 13 markets,
political spending develops. The first Democratic primaries to help it expand. The telecom may reportedly want to use
aren't until next February, but some local stations will start the non-profit as a hedge against potential blackouts to its
benefiting by the end of the year. "We'll start seeing some DirecTV, DirecTV Now and U-verse TV services... Apple
money in the third quarter and ramping up in Q4," he predicts. has confirmed the company's streaming music service has
"We'll do pretty good in 2020, but we'll see. It's kind of early more than 60 million subscribers, trailing rival Spotify's 100
right now."
million premium subscribers, Reuters reports.
What has Lanzano upbeat is conversations he's had in
Washington with political consultants and PACs. "They SATURDAY NIELSEN RATINGS - LIVE + SAME DAY
know TV is still the medium that moves the poll numbers
-- especially when you talk about House, Senate and
gubernatorial races where it's all about name recognition,"
he says. "They know it's all about TV, and I don't see that
changing in 2020."
Lanzano thinks it's why between 2014 and 2018 local TV
increased its take from $2 billion to more than $3 billion.
He also believes President Trump will do more television
spending than during the previous cycle, when he mostly
spent only during the final six weeks of the campaign. "I
expect there's going to be more local TV advertising this year
on the Republican side," he says.
7/1/2019
The Daily News of TV Sales @
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