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sales@spotsndots.com Copyright 2017.The Daily News of TV Sales Monday, July 31, 2017

AUTO ADV: DIGITAL ACCOUNTS FOR ALL GROWTHDEALER: “YOU CAN’T BRAND WITHOUT TV” A new release from Borrell Associates on 2017 Automotive Advertising confirms the marketing of new and used vehicles is the largest U.S. advertising segment, totaling $36.3 billion in 2016. And while it appears new-car sales will be down this year, Borrell is forecasting an increase in ad spendihg - up 3.2%, pushing the total to $37.4 billion for 2017. Expenditures on digital media account for all the growth. Dealers and manufacturers are now spending more than half their budgets on it. In fact, Digital budgets are expanding this year by 7.9%, while dollars spent on offline media are shrinking by 2.3%. What about digital ad fraud? It doesn’t appear that local dealers are concerned. While they’ve actively lobbied to get manufacturers to ease digital requirements in co-op plans, those requirements remain in place and continue to drive local dealership ad-buying decisions. Borrell predicts that over the next five years, overall automotive ad spending on digital media will go from a 54% share of all expenditures to a 66% share. Offline media -- principally broadcast TV and newspapers – are forecast to see annual declines of nearly 3%, while digital media chugs along with annual increases of 6%. But the increase in digital may be based on manufacturers rules, not on the impact of the ads. Dealers are complaining that manufacturers’ co-op rules are forcing too much of ad spending toward the digital space. “You can’t brand without TV,” a multi-store dealer told us. “These online ads aren’t getting the job done.” Dealer Associations, managed in many cases by ad agencies, are supporting dealers on this issue. but as of now, co-op requirements haven’t budged. Meanwhile, there are a couple of other reasons new car sales are down this year. Competition from “almost-new” cars. is hurting the sale of new vehicles. Cars and trucks that have a few thousand miles on the odometer are luring buyers from purchasing a new vehicle. A flood of these top-quality used vehicles has come off lease, causing prices to drop. These vehicles give buyers the opportunity to drive a car that has a lot more features than they might be able to afford on a new vehicle. In addition, Borrell’s research shows incentives (rebates, special financing, and discounts) continue to be high, but their usefulness has abated. Heavy use for the past year has blunted their effectiveness as a marketing tool.Finally, youner buyers, especially Millennials, continue to postpone buying. Unpaid student loans and relatively low job prospects continue to restrict big-ticket purchases – something that’s affecting the real estate industry as well. Auto sales fell 2.1% through the first six months of 2017, compared to the same period in 2016, according to Autodata. And July was the fourth consecutive month of retail sales declines. (www.borrellassociates.com/)

ADVERTISER NEWS Although General Motors is looking at dropping some models, the Chevrolet Traverse, which has grown to become Chevy’s number five nameplate, will get its first redesign this fall. Starting at $30,875, Traverse sales are up 4.3% so far this year and it trails just the Ford Explorer and Toyota Highlander in the large crossover segment……Other retailers are cutting back on physical stores, but Retail Leader says Belk is making a $40 million bet on bricks-and-mortar. Now at 292 locations in 16

states, the company will open three new stores in October as well as remodel 12 existing stores this year……Rent-A-Center had a tough quarter, with core U.S. revenues down 13.9% coming from lower same-store sales and store closures in the prior year. The Acceptance Now finance operation had positive same-store comps but much of that was offset by store closures so total quarterly revenue rose just 1.9%......Tempur Sealy second quarter revenue was down 18%, but of course there’s a big story behind the numbers. Second quarter sales to Mattress Firm were $1.2 million prior to the expiration of

their relationship. Last year Tempur Sealy sold $191.4 million to Mattress Firm in the same period, and it says excluding Mattress Firm, sales were up 10%......A tough fourth fiscal quarter for Ethan Allen. Its retail segment had comps fall by 9.2% (although written orders were slightly ahead). The company promises “investments in…increased advertising and expanded marketing” in the current fiscal year……Even Starbucks can make mistakes, and the chain will close all 379 Teavana units by next spring. Mall-based units were said to be “persistently underperforming.” Starbucks paid $620 million for the chain in 2012……Chipotle will open its first-ever “vehicular pickup window” at an undisclosed restaurant in Ohio later this year. With the company still facing challenges over issues of food safety, the CEO also promises “changes to the design of our existing and new restaurants to optimize them for digital orders, new types of ordering formats, and new menu items”……Whirlpool had a strong quarter in its business in North America, although other regions of the world dragged down corporate results. Excluding currency fluctuations, North American revenue rose by 9%, and the company expects domestic unit shipments will be up 4-6% for the rest of the year.... Hershey is expanding its snacking products with in-house creation called Popwell. BakeryandSnacks.com describes it as a spin on classic popcorn, claiming to be half-popped. The marketing on the bag states that being half-popped gives it a unique texture that’s “not too hard, not too soft.” It has fewer than 200 calories per serving and is non-GMO, gluten-free and made from whole grains.

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NETWORK NEWS The star of the ABC series Quantico, Priyanka Chopra, is developing a new comedy project about a former Bollywood star for the network. Variety is reporting the Chopra will be executive producer of a single-camera show about a former Bollywood star who settles down in the suburbs of America with her bi-cultural family and tries to bring her colorful lifestyle to an otherwise dull town. The series is based on the real life of Madhuri Dixit, who will also be an executive producer on the project, along with Sri Rao, a Bollywood writer and a writer for such shows as General Hospital and Night Shift. Rao is set to write the script. The show will come from ABC Studios and the Mark Gordon Company, which currently produces Ray Donovan, Grey’s Anatomy, and Quantico, among others…….CBS has announced that Maria Bello has been cast as a series regular on its prime time hit NCIS. She will be introduced in the new season’s fourth episode. Bello will play an NCIS agent who was a second lieutenant in the Army and served two tours in Afghanistan. Her character joins NCIS as the agency’s foremost forensic psychologist. The 15th season of NCIS premieres on CBS Tuesday, September 26th at 8 PM (ET)……The Teen Choice Awards 2017 will feature singer Louis Tomlinson performing his newly released single Back to You with Bebe Rexha. The hit single is the first for Tomlinson after his split from the boy band One Direction. In addition, Grammy-winning trio Clean Bandit will perform Rockabye, which has received a Teen Choice nomination. They will also present their rendition of their single Symphony featuring pop vocalist Zara Larsson on the awards show. Additional musical performances and talent will be announced later. The Teen Choice Awards 2017 two-hour event will be broadcast live from the University of Southern California Galen Center on Sunday, August 13th at 8 PM (ET) on the Fox network……. According to Variety, one of the stars of the NBC hit Friends, and a movie star that once made a guest appearance on the show, are teaming up to produce a new TV show focusing on a New York morning program. Jennifer Aniston and Reese Witherspoon will be executive producers of the project with Witherspoon producing through her Hello Sunshine production banner. Jay Carson (House of Cards) is attached to write the script with Steve Kloves on board as an executive producer. Aniston and Witherspoon worked together on Friends when Witherspoon guest starred as Aniston’s sister.

ECONOMIC NEWS Here’s some good news: Gross Domestic Product was up 2.6% in the second quarter, more than double the 1.2% increase that had been seen in the first quarter. Marketwatch reports a vibrant labor market has raised income for millions, enabled more Americans to buy homes and fed steady demand for business services. Most of the gain in GDP came from consumer spending, which was up 2.8% while business’ fixed investments were up 2.2%.

AVAILS Are you looking for a FANTASTIC place to work where helping businesses grow though leading edge marketing solutions is the standard culture? Do you find that your clients come to you for ideas and a trusted direction for their marketing plans? Does creating a new “Raving Fan Client” make you both happy and satisfied? If you answered “YES” to those questions... WAAY 31 wants to speak to you today! WAAY 31 (ABC) in Huntsville, AL seeks

an Account Executive with 1-3 years of selling experience. CLICK HERE for details or to apply. EOE. If you’ve ever wanted to work in one of America’s best places to live, here is your opportunity! WKOW, the ABC affiliate in Madison, WI has an immediate opening for an account executive. A motivated salesperson committed to winning will love working for family-owned Quincy Media. The AE will help an established client list grow

its bottom line with Green Bay Packers Football, Big 10 Football, local sports and news from the 2016 Wisconsin Broadcasters Association Station of the Year. CLICK HERE for more details or to apply. EOE. WIS, the NBC affiliate, and dominant multi-platform media outlet in Columbia, SC, has an opening for an experienced Multi-Platform Consultant with 3-5 years sales experience. You must have a proven track record of negotiating and developing business in broadcast sales and digital sales. Experience with MSOffice, comScore, Matrix, Kantar, Wide Orbit Media Sales and Wide Orbit Traffic preferred. Qualified applicants, please APPLY ONLINE and attach cover letter and resume. Sorry, no phone calls or emails will be returned. EOE-M/F/D/V. Account Executive: WABC-TV in New York has an outstanding opportunity for an Account Executive with a minimum of five years of broadcast and digital sales experience. The candidate must have a proven track record of success in both agency and direct business negotiations. Requirements include developing new business opportunities for all of our platforms, coupled with strong communication and presentation skills. Please CLICK HERE for more info or to apply now. No calls please! Equal Opportunity Employer - Female/Minority/Veteran/Disability/Sexual Orientation/Gender Identity. Bloom Ads, Los Angeles is looking for an experienced Digital Media Planner/Buyer who’s eager to jump in and make a difference with our growing group of clients.

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7/31/2017

Seth Meyers

Taco Bell will begin selling a potato-rito, which is beef,

cheese, potatoes, and chipotle spice wrapped in a tortilla for $1. Or, for the

same nutritional value, just eat the dollar.

The Daily News of TV Sales @ www.spotsndots.com PAGE 3

THIS AND THAT Altice USA, the fourth-largest U.S. cable TV operator lost 37,000 subscribers in Q2. During its earnings call last week, Dexter Goei, CEO of Altice USA, said, “We are not seeing an acceleration of video subscriber losses. We are trending at two percentage points on video subscriber losses, just like last year.” Total revenue rose 3.2% to $2.33 billion, while net losses more than doubled to $474.8 million. Local cable advertising sales improved 2% to $92.7 million.... The attorney for former CBS chairman Sumner Redstone has been added to the company’s board of directors. Robert Klieger, a partner in the law firm of Hueston Hennigan LLP, will succeed Mr. Redstone on the CBS board. Redstone, 94, resigned from the board earlier this year....Consumer confidence remained largely unchanged for the month, a survey of consumers by The University of Michigan revealed on Friday. Americans appear the most optimistic about the current economic situation in U.S. than they have in 12 years.

BUSINESS BYTES Wells Fargo could have another public relations problem on its hands. After being heavily criticized (including by Congress) over opening accounts customers didn’t know about last year, the bank now says it will pay more than a half million customers who were charged for car loan insurance they did not need. Wells Fargo agreed to pay those customers about $64 million in cash and another $16 million in account adjustments. We’ve talked a lot lately about the tightness in the housing market, and one result is that more Americans are renting now than any time in the last 50 years, according to analysis of Census Bureau data done by the Pew Research Center. Pew says the number of households in the U.S. grew by 7.6 million in the decade between 2006 and 2016, but the number of households headed by home owners remained relatively flat. That led to 37% of households renting last year, up six percentage points from ten years before. 65% of all households headed by people under 35 are renters, up from 57% in 2006. Households headed by 35-44s were a bit better with 41% renting, up from 31% in 2006. For Boomers and older Americans, the rental rate remained steady around 20%. BUSINESS ROUNDTABLE BACKS TV CAMPAIGN The Business Roundtable is launching a multi-million campaign to build positive momentum for the idea of tax reform which Congress will deal with after the next recess. The effort will be supported by the administration, Treasury Department and leaders in the Senate and House of Representatives. The campaign runs through Labor Day, with the creative calling on viewers to call Congress and demand passage of tax reform. In addition to TV, the group bought ads on about 250 radio stations. “Members of Congress will hear from business leaders—and more importantly their constituents—that tax reform is the single best way to increase investments in U.S. communities, create good jobs, and promote a stronger economy,” Business Roundtable CEO Joshua Bolten said.

RETAIL WOES? BLAME PRIVATE EQUITY The retail industry’s woes are often blamed on internet shopping and an excessive number of physical stores. Here’s another potential culprit: private-equity investors. Some of these investors took over retailers including Payless Shoe Source, Gymboree, rue21, and True Religion Apparel during the last decade. The deals not only loaded debt onto the companies, but, in some instances after the takeover, the owners had the companies borrow more money to pay themselves dividends. Now, creditor lawyers are investigating whether that accelerated the financial

collapse of some of these companies. WSJ.com used Payless Shoes as an example. Investors Golden Gate Capital and Blum Capital, after a leveraged buyout in 2012, over the next two years paid themselves $350 million in dividends—in total putting more than $700 million in debt on the company. In 2016. Vendors and landlords alleged in court papers that the dividend payouts, along with other payments to the investors, left the retailer particularly

vulnerable to collapse just as technology and shifting consumer behavior upended the retail industry. The retailers’ woes broadly show a downside of the private-equity investing model. Financiers sometimes load companies with debt to improve the investors’ returns. But if business conditions worsen, it can become difficult for the companies to make interest payments and pay off the debt. “A large number of private-equity takeovers of public retailers occurred in 2011 to 2013, when money was cheap and interest rates were low,” said restructuring attorney Walter Curchack of Loeb & Loeb LLP. “Retail is a cyclical business and there’s little room for error, which puts an overleveraged retailer particularly at high risk.” ACCOUNT ACTIONS Amazon has issued a Request For Proposals for a media shop to handle business in North America and other markets around the world. Initiative has had the media activity on the account since 2013 with digital buying at MEC. Latest estimates are that Amazon has spent as much as $950 million in the U.S. with total global expenditures well over a billion dollars annually. Adweek says it’s not yet clear which agencies will pitch the account.

7/31/2017

Jimmy Fallon

Dancing With the Stars is trying to get former White House press

secretary Sean Spicer to be a contestant, marking the first “Dancing” contestant who’s hit rock bottom before going

on the show.

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