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. The Daily News of TV Sales Thursday, December 15, 2016 Send sales-related job listing to: [email protected] Copyright 2016. STUDY: HOW CPG BRANDS CAN BOOST ROI SHIFT MORE SPENDING TO ADVERTISING ADVERTISER NEWS Consumer Package Goods (CPG) brands are heavy As opposed to Nordstrom, which reported same- users of promotions to connect with potential consumers— store revenue growth of 2.4% for its most recent fiscal as much as 66% of their marketing budgets in some cases. quarter, high-end competitor Neiman Marcus’ comp store But a new study by IRI and Turner finds that a more sales were down 8.0%, the fifth consecutive quarter of balanced approach will increase ROI. IRI’s analysis found negatives……Barron’s reports Amazon is moving into that shifting even 10% of promotional spending to media the clothing business rolling out its own brand of high-end advertising could increase ROIs by as much as 10-25%. men’s dress shirts that will compete with chains such as That ROI increase is a substantial gain from only a 10% Nordstrom and Brooks Brothers. Amazon’s Buttoned shift, notes Bhanu Bhardwaj, principal of IRI Media Center Down brand will be sold at a discount to members of of Excellence. “Today, many marketers Amazon Prime with an unconditional are hesitant to switch their spending from money-back guarantee and it’s expected promotions to media because they fear its to expand next into pants and sweaters short-term impact. However, our analysis next……General Motors started deliveries shows that media and promotional spending of the Chevrolet Bolt EV this week and says produce a similar short-term ROI, yet a the vehicle will be available nationwide by more balanced media investment brings an the middle of next year. At the moment it’s additional long-term ROI two to three times just available in California and Oregon, states higher,” Bhardwaj said. Marketers are able to that require manufacturers to sell some zero- measure their advertising success via the IRI emission vehicles. It’s the first EV offered in Lift solution, which ties media exposures to actual offline the country with a range of at least 200 miles on a single purchases, he noted. battery charge……Toyota started sales of its new C-HR “We felt it was critical to remind advertisers of the risk in Japan this week with plans to introduce it in the U.S. that they take with trade promotion, which can not only next spring. Initially visualized as a model for the now- harm the brand by training consumers to buy on a deal, defunct Scion brand, the subcompact crossover is seen but also sacrifice short-term and especially long-term ROI as a “conquest vehicle”—generally about 20% of Toyotas because of the strength of media and brand marketing,” are sold to customers moving from different brands, but said Howard Shimmel, chief research officer at Turner. the C-HR’s distinctive styling is expected to beat that For this analysis that leverages three years of data, percentage in attracting new customers……Red Robin IRI and Turner mined marketing mix studies across 62 Gourmet Burgers is teaming with DoorDash in an effort to brands representing $20 billion in sales and $3 billion in reverse negative comps—about 70 Red Robins in several marketing spend across food, beverage, health care, markets will offer delivery. Nation’s Restaurant News adds beauty and home care aisles. The research generated that several other casual-dining players are currently testing three key takeaways, according to IRI and Turner. First, or rolling out delivery including Applebee’s, Buffalo Wild the short-term ROI of media investments is comparable to Wings and Cheesecake Factory……Could this be the standalone promotional efforts; however, when considering next big chicken-oriented chain to succeed? Tampa-based the long term, the ROI of media spend is two to three times PDQ (People Dedicated to Quality) is just five years old higher than promotion. Over-promotion of CPG brands and has grown to 55 units in eight states. It plans to enter can “train” shoppers to buy products only when they are on Illinois, Oklahoma, Utah and Arizona next year with a goal sale, increase everyday price sensitivity and limit the ability of at least 100 units in operation by the end of 2018…… to drive price increases, thereby contributing to a loss of Lidl, the Aldi-like discount food retailer that will debut in brand equity. the U.S. next year, is holding job fairs for store managers The data also shows that short- and long-term benefits this week. Plans call for 120-150 stores in operation by of media advertising are not limited to large brands. While the end of next year starting on the Eastern seaboard…… large brands are known to profit from media spending, Nielsen has found three major groups that are most likely smaller brands benefit as well, as media provides the to utilize retail clinics in a pharmacy setting. It says 29% opportunity to emphasize product benefits and other worthy of households with children used a retail clinic in the last differentiators. Over time, smaller brands that invest right year (and 71% of them bought something else while there). in media generate higher growth. Hispanic shoppers are also a key demographic group, And the third takeaway is the key point of this story: A along with millennials. Accenture counts over 2,800 retail Continued on Page 3 clinics now in operation, up 47% in just two years.

PAGE 1 www.SpotsnDots.com NETWORK NEWS AVAILS The SAG Award nominees were announced in Los WYFF 4, the Hearst Television NBC affiliate in Angeles on Wednesday and Sterling K. Brown picked up Greenville, SC seeks a superstar Account Executive. a nomination for Outstanding Performance by a Male Actor We need an experienced sales professional who can excel in a Drama Series for his portrayal of Randal Pearson in with some of the top accounts while achieving goals across NBC’s This Is Us. Anthony Anderson, who plays Andre all platforms. Do you have a commitment to excellence, a on ABC’s Black-ish got a nomination for Outstanding track record of New Business success, and like to have Performance by a Male Actor in a Comedy Series……FOX fun? Then come work at one of the best television stations has announced that Terence Carter, the network’s head in the country. Google “Greenville, SC Top 10” and see why of drama, will add oversight of events to his responsibilities everyone wants to live here! CLICK HERE to apply. EOE. under his recently renewed contract. Suzanna Makkos WHSV in Harrisonburg, VA seeks a Digital Sales recently renewed her contract and will Manager. Are you an up and coming retain her current title of EVP comedy seller with a strong digital background? development and programming. Her WHSV is building the best broadcast The Better Business Bureau responsibilities include oversight of sales team in the country and we are comedy development and current just released a list of the top looking for the next shining star to help series. Both Carter and Makkos will 10 holiday scams to avoid. us take the hill. We need a person who report to FOX Entertainment president, And get this, the list only can quickly build rapport with clients David Madden……ABC has ordered cost me $200. and our sales team. If you’re ready to additional episodes for six of its help lead our team into the future of comedies. The Middle, American Jimmy Fallon broadcasting, contact Sacha Purciful, Housewife, Fresh off the Boat, The DOS, at 540-433-9191 ext. 159. Or Goldbergs, Speechless and black- CLICK HERE for more info. EOE. ish all received new episode orders. The move is not Senior Account Executive: Entravision Boston, the unexpected since the ABC comedy block has maintained leader in Spanish Language media, seeks an experienced stable ratings while dramas like Notorious and Conviction and aggressive television senior failed to deliver. Even How to Get Away with Murder, account executive to join our once a bright spot in the Thursday, 10 PM (ET) slot has Integrated Marketing Solutions seen its ratings drop by a third. Speechless and American sales team. You will have Housewife have been solid ratings performers for ABC…… tremendous broadcast television, NBC’s This Is Us was one of the first three shows selected digital, and mobile sales platforms for PaleyFest Los Angeles 2017. PaleyFest is an annual to drive advertising revenues. panel-and-screening event from the Paley Center for Media. Compensation is uncapped The event will take place at the Dolby Theater March 17th and limited guarantees are through March 26th……Rappers Snoop Dogg, RZA and available. Spanish Language media is the fastest growing Common will all appear as themselves in a January hour- segment in advertising today, and Entravision Boston is long version of The Simpsons on FOX. The episode is a major shareholder. Send resume with cover letter to: described as a hip-hop homage to The Great Gatsby, the F. [email protected] or fax to 781-433-2702. Scott Fitzgerald novel set in the roaring 20’s. The episode will be called “The Great Phatsby.” Other guest stars include TUESDAY RATINGS Taraji P. Henson of Empire and Keegan-Michael Key. The special will be in two parts, but will air in one hour. Jim Beanz produces music for Empire and has created original hip-hop songs for this episode, including a betrayal rap and a revenge rap……Nick Wechsler (Revenge) has been added to the cast of Chicago P.D. for a multi-episode arc when the drama resumes next year. Chicago P.D. returns to the NBC primetime line-up on January 3rd and 4th at 10 PM (ET)……Heather Locklear and Courtney Thorn Smith are scheduled to guest star on the ABC sitcom Fresh Off the Boat this season. Locklear is will appear in a February episode and Thorn Smith will appear the following week...... Patricia Manterola and Karim Mendiburu join the beloved Mario Kreutzberger, a/k/a Don Francisco, as co-hosts of the new entertainment show Siempre Niños, premiering on Telemundo Sunday, January 8th at 8 PM. Viewers will now enjoy when kids take control and adults relive childhood in this family-friendly show featuring fun segments, games and challenges, hilarious debates with kids, children with extraordinary talent, and guest artists sharing stories when they were little. 12/15/2016

The Daily News of TV Sales @ www.spotsndots.com PAGE 2 FITCH: 2017 LOOKING STABLE FOR U.S. MEDIA HOLIDAY SEASON EARLIER EACH YEAR Looking at the year ahead, the analysts at Fitch Nielsen confirms what you probably suspected—the Ratings say 2017 looks stable for U.S. media companies, holiday shopping season is starting earlier and earlier each despite such challenges as changing consumption patterns, year. In fact, according to Nielsen Sample Store Auditing alternative distribution platforms and the ongoing evolution data, holiday in-store promotions started as early as of technology. However, Fitch says the debt issuers it September 14th in 2015. follows in the media field are generally well positioned to Although 39% of consumers say the holiday season address these secular issues. starts on Thanksgiving, as of early September 2016, 24% “Both advertising and non-advertising related of consumers had already started shopping for friends and subsectors can expect a mostly business-as-usual operating loved ones, compared with 23% in 2015 and 22% in 2014. environment in 2017,” said Jack Kranefuss, Fitch’s Sr. Two groups in particular are leading the charge to get started Director of U.S. Corporates. We expect on their naughty and nice shopping lists: advertising revenue growth will mirror young shoppers and shoppers with GDP in low single-digit territory, leaving Christmas is coming. Yes, many on their lists. This year, 30% of many companies in control of their I do mean that as a threat. Millennials had started their shopping balance sheets, with credit profiles Christmas is that magical in early September, compared with just remaining within their current ratings.” time of the year when Mariah 16% of the Greatest Generation. Larger According to the Fitch analysts, Carey makes a billion dollars households also got started earlier, with content owners continue to be the best in residuals in two weeks. 31% of households with five or more positioned to take advantage of new members and 29% of households with opportunities and deal with threats Jimmy Kimmel three to four members starting on their as consumption matures. Fitch notes lists by mid-October, compared with fears mounting of cord-cutting (but see 23% of two-member and only 16% of yesterday’s issue for some contrary evidence), but says one-person households. well-capitalized content providers will be able to retain a competitive position and ample cash flow. ONLINE HOLIDAY BUYING UP DOUBLE-DIGITS comScore reported holiday season U.S. retail AMAZON MAKES FIRST DRONE DELIVERY e-commerce spending from desktop computers for the first Amazon.com CEO Jeff Bezos proudly announced 42 days of the November-December 2016 holiday season. Wednesday that the online retailer has completed its first For the holiday season-to-date, $49.3 billion has been spent delivery to an actual customer using a drone. The first-ever online, marking a 12% increase versus the corresponding event on December 7 wasn’t in the U.S., where the FAA days last year. Green Monday (December 12) reached has greatly restricted commercial use of drones, but in the $1.62 billion in desktop online spending, up 15% versus the U.K. An Amazon Prime customer living near Cambridge, corresponding shopping day a year ago, representing the England received delivery of a Fire TV streaming device fifth heaviest online spending day of the holiday season- and a bag of popcorn. Bezos tweeted that it took only 13 to-date after Cyber Monday; Tuesday, November 29; Black minutes from “click to delivery.” Friday and Friday, December 9. The custom-built quad copter is seen in a video posted by Amazon floating over green farm fields before sweeping THIS AND THAT down onto a lawn and dropping off the package. The You may think of Starbucks as coffee shop operator— customer, identified only as Richard B., came out to pick and a very big one—but Packaged Facts notes that it is up the purchases after the drone took off. also a CPG company. And since 80% of coffee consumption Amazon is making its drone-delivery service available occurs outside coffee shops, Starbucks is well positioned to customers who live within a few miles of the U.K. facility with its roast and ground coffee as the top premium coffee it built to test deliveries. brand, outpacing growth in the overall segment. For the past five quarters Starbucks has been the #1 selling K-Cup STUDY: HOW CPG BRANDS CAN BOOST ROI brand. And, of course, it is selling ready-to-drink coffee Continued from Page 1 products just about everywhere—with premium Teavana 10% shift in spend from promotions to media will ready-to-drink tea products soon to launch through a substantially improve marketing ROI and support long- partnership with Anheuser-Busch InBev……When it term brand growth. Given the healthy short- and long-term comes to loyalty programs, a new Excentus study finds impact of media advertising, marketers should realign a that the reward consumers most want is saving money on share of promotional dollars to media to stop brand erosion. fuel. It’s the second year in a row that fuel rewards ranked By prioritizing advertising that conveys a targeted and #1, preferred by 37% of survey respondents. More than contextually appropriate brand story, while leveraging the a quarter (26%) say they shop more frequently at stores synergies of TV and digital, brands will create a positive where they are able to earn rewards...... U.S. retail sales ROI growth cycle and break away from the price-focused edged up only 0.1% in November—far below the October short-term impact and brand subsidization cycles created increase of 0.6%. Excluding the volatile sectors such as by promotions. Although a brand’s shift from promotional autos and gasoline, November was still up only 0.1%. Even to media spending cannot be made overnight, the model so, the Federal Reserve raised interest rates for the first needs to evolve to be consistent with how consumers shop time this year and indicated that three rate increases are to achieve long-term growth. likely in 2017. 12/15/2016

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