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Local Clients Choose Television Over Other Media

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Local Clients Choose Television Over Other Media www.cablespots.net Published Daily For Subscriptions, call 1-888-884-2630 [email protected] $300 Per Year Copyright 2018 Wednesday, July 11, 2018 LOCAL CLIENTS CHOOSE TELEVISION OVER OTHER MEDIA BROADCAST, CABLE TV TOP DIGITAL SPENDING ADVERTISER NEWS Digital may have more buzz than television in 2018, but PepsiCo’s fiscal second-quarter earnings beat analysts’ both broadcast and cable TV are leading where it really expectations as sales of Cheetos and other salty snacks matters. Each gets far more ad dollars, on average, from continued to offset its slumping soft drinks business. The local advertisers than any form of online media. maker of Pepsi, Gatorade, Mountain Dew and Tropicana Borrell Associates’ annual survey of small- and said yesterday that sales volume declined for its North medium-sized businesses in local markets across the U.S. American beverage unit in the second quarter. CEO Indra shows they spend an average of $176,105 on Nooyi last quarter placed the blame for slow- broadcast TV each year, far outpacing all other ing sales on Coca-Cola’s increased spending marketing options. Local cable TV advertising on advertising. PepsiCo’s net revenue rose 2.4 ranks second, capturing slightly more than a percent to $16.09 billion, of which $5.19 billion third of what broadcast does. Borrell found local came from its beverage business and beat Wall clients allocated an average of $68,123 to cable Street expectations. The company said that it TV spots each year. will increase the marketing budget behind Pepsi The survey also says local advertisers are going into the second half of the year... CNBC spending $10,236 on average to market via reports that Walmart’s Jet.com is testing same- video advertising online. Some of that total day grocery delivery in New York. The company is likely going to local TV and cable operators, who are will open a fulfillment center in the Bronx for Jet.com, the increasingly offering digital video options to clients. Overall, e-commerce start-up it acquired roughly two years ago. It’ll the TV data doesn’t need much interpretation, said firm serve as the base for the delivery of goods like grocer- president Gordon Borrell. “It takes a lot of cash,” he said. ies and Apple electronics... The Fresh Market will close The best-performing online platform is search engine 15 underperforming stores following an analysis of its marketing. The survey shows local clients spent $64,235 174-store footprint. The closures will happen in nine states: on average in that area. Borrell said search marketing may Georgia, Illinois, Indiana, Kentucky, North Carolina, New not require a big investment of dollars, but it does require Hampshire, Tennessee, Virginia and Wisconsin. The move a “great deal of frequency” to work, and that’s helped push follows The Fresh Market’s decision earlier this year to halt search into third place. Direct mail ($40,254) and radio new store growth and focus on its existing locations, says ($39,860) round out the top five. Social media advertising, retaildive.com... Automotive News says Italy’s Juven- which gets a lot of attention, weighs in at a relatively low tus Football Club SpA is paying more than $130 million to $6,498, according to the survey. nab star player Cristiano Ronaldo from the Real Madrid The biggest opportunity for television may be the large Football Club. Fiat Chrysler Automobiles, whose Jeep number of local small- and medium-sized businesses that logo is plastered across the chests of Juventus’ black-and- say they’re not using broadcast or cable TV to market white-striped jerseys, could get a huge advertising boost in goods and services. Borrell said just 23 percent of local the deal. If Ronaldo can lead Juventus to the UEFA Cham- advertisers spend money on broadcast TV, and 18 percent pions League finals, the media exposure for that one year buy cable TV spots. will be worth about $58.3 million, according to Eric Small- Television has long faced criticism that it’s just too wood, president of Apex Marketing Group Inc. That expensive for some clients, and Borrell said that’s still the would be quite a return on the $20 million Fiat Chrysler biggest hurdle for sales reps looking to strike a deal. But pays each year for its Juventus sponsorship, according to the data suggests the industry may not be doing enough SportsPro... Supermarket News reports that Kroger has to strike online deals that could be viewed as a cheaper unveiled the apparel private brand it plans to launch in the alternative for cash-strapped clients. The survey found that fall. Called Dip, the exclusive clothing line was developed just 27 percent of local advertisers buy streaming video by fashion designer Joe Mimran and will be sold at more ads, and that may be a way to pull new dollars into the than 300 Fred Meyer and Kroger Marketplace large-for- medium. mat stores. Dip will include apparel for women, men, ju- On a recent webinar, Borrell said the firm’s research niors, children and babies. Kroger said the apparel brand is has shown that a lot of newspaper advertisers are using intended to “help busy, on-the-go people live with style and video advertising. And nearly a third are cutting newspaper get the most out of their fashion dollar” by offering flexible spending to do so. So rather than disrupt broadcast TV or collections that make it easy for customers to assemble cable, digital video is luring more dollars from newspapers, outfits or clothe an entire family... Southwest Airlines will yellow pages and radio. stop serving peanuts on its flights this summer, nixing a The findings are based on Borrell Associates’ annual snack that has been nearly synonymous with the carrier it- survey of local businesses. This year, 1,165 small- and self. The airline says it’s making the change to help protect medium-sized advertisers took part between April and July. passengers who have severe peanut allergies. The firm will release its full survey to subscribers next week. CABLENET CHATTER THOSE BUNDLES ARE GETTING MORE EXPENSIVE Oscar winner Reese Witherspoon is shining the spotlight A report from Axios says digital content bundles that on women with Shine On With Reese, an unscripted Americans are using in place of cable packages are series that debuts Tuesday on DirecTV, DirecTV Now raising prices as they grow and as consumers become and U-Verse on the Hello Sunshine VOD channel. Shine attached to the services. On, which consists of nine episodes in its first season, It’s also worth pointing out that these packages aren’t features conversations—at home and elsewhere—with the likely to get any cheaper: Despite their rising popularity, likes of director Ava DuVernay, music icon Dolly Parton, there’s currently little regulation in regards to pricing, author Glennon Doyle and World Cup champion Abby consolidation and distribution fees. In other words, there’s Wambach. The discussions, hosted by Witherspoon, will little to protect consumers from long-term price inflation. center on each guest’s path to success. Witherspoon’s There are numerous examples of digital multichannel Hello Sunshine, a cross-platform brand and consumer- video programming distributors (dMVPDs)—skinny bundle facing content company that’s dedicated packages with live programming—that to telling female-driven stories, has been have recently raised prices of digital TV on a hot streak of late. Its Big Little Lies Scientists say drinking beer subscription fees. Among them: AT&T’s on HBO earned an Emmy last year. That after a workout can make DirecTV Now, which has raised the was followed up by the well-received your next workout more price of its starter plan by $5 monthly; Meet My Mom on Facebook Watch difficult. So do the smart Sony’s Playstation Vue, which hiked earlier this year. The Hello Sunshine thing, and don’t work out. the price for all its multi-channel plans; channel will be located on DirecTV’s Dish’s Sling TV, which is raising the channel 1112 and U-Verse’s channel base price of its core packaging from 1530… Freeform has two projects in $20 to $25 monthly; and YouTube TV the pipeline for the holiday season, Life Jimmy Fallon said it will raise its subscription from $35 Size 2 and No Sleep ’Til Christmas. to $40 per month after adding Turner The network has announced casting for programming. both films. Francia Raisa, Gavin Stenhouse, Shanica Knowles, Hank Chen and Alison Fernandez will join COMCAST EYES BUYERS FOR FOX RSNS Tyra Banks in Life Size 2, the story of a toy company CEO Comcast is lining up potential buyers for 21st Century (Raisa), who is fighting a quarter-life crisis and learning that Fox’s regional sports networks. That’s according to she’s in way over her head. No Sleep ’Til Christmas, starring Reuters, citing people familiar with the matter. The move Dave and Odette Annable, Charles Michael Davis, Sheryl by Comcast comes as the cable giant tries to ease antitrust Lee Ralph and Alphonso McAuley, is an unexpected and concerns about a new bid to acquire most of Fox’s assets. whimsical romantic comedy about two insomniac strangers The report says Comcast hopes that preparing now for plagued by exhaustion—who eventually discover that such divestitures will ease Fox’s concerns over potential they can only fall asleep while next to each other. Both antitrust risks and boost its chances of a successful bid. projects begin production this month. Freeform plans to air Fox has already agreed to a $71 billion cash-and-stock them during the network’s 25 Days of Christmas annual deal with Walt Disney.
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