Marketing The Potential Of The Connected Car

Commentary

by Yariella Coello, Op-Ed Contributor, November 28, 2016, 8:00 AM

With Samsung’s recent purchase of connected car firm Harman, the fight over who’ll lead the connected and autonomous vehicle market is hitting the fast lane. This development could prove a great opportunity for marketers to take advantage of the change in behavior these vehicles will create.

When we drive today, all our time and attention is spent focussing on the road and controlling our vehicle. Autonomous, or self-driving, vehicles will change this. Drivers will become passengers and won’t have to concentrate on the road. There will be an opportunity to capture drivers’ attention spans on the road that didn’t exist before, and marketers should take advantage of this.

It is worth noting that connected car firm Harman works on the technology that enables cars to become self-driving; that is, being able to connect a car to the internet. But it will also provide in-car entertainment systems which is where marketing can play a part. 

Cars will soon be an extension of our living rooms. When getting from A to B, we’ll be looking for activities to do during the journey. With our cars connected to the internet, we’ll be able to browse and shop online, watch TV and post on social media. With little else to do, passengers will be more receptive to marketing messages they receive while being driven — especially if those messages are targeted according to their journey and location.

A couple being driven in their self-driving car to a romantic weekend getaway could be given tips on local restaurants and things to do when they arrive. Using location and journey data, you may be able to determine that they left their home a few hours ago, may be getting hungry and therefore offer them information and promotions from a nearby service station. On the way home, the hotel they were staying in could ask for feedback as they surf the internet or offer a discounted stay if they re-book during the journey.

Another potential play for marketers is in creating mobile apps specifically for autonomous vehicle passengers. Apps that can be used or played according to location, much in the style of Pokemon Go, could increase passenger engagement with marketing messages as they travel. 

Connected car data could also be used by marketers and advertisers to understand who is likely to drive past a certain billboard. Tracking location data over time can tell marketers if a person takes certain routes at specific times of the day. Marketers can then choose where to place outdoor advertising campaigns and when. Mobile apps can also complement this by encouraging passengers to engage with billboards through games as they drive by. High engagement on these ads will show that the campaign has been effective, and vice versa.

The free time that connected cars will provide drivers and passengers should be used by marketers to provide targeted and personalized messaging. Nothing turns a consumer off more than irrelevant and ill-timed marketing. Marketers will have a good opportunity to engage with consumers on an entirely new medium that audiences will not have switched off from yet. 

There will be a certain novelty to self-driving cars in the beginning, along with a sense of prestige. Marketers should tap into that and make the content served through connected cars feel exclusive to the passengers of that car. There is a great opportunity for marketers to really rev up their campaigns through using connected vehicles. Those to take advantage of our self-driving futures will find themselves miles ahead when other marketers are trying to play catch-up.

TV Without Commercials? That Reality Is Already Here

I for one has built my career on commercial radio and television and applaud those who have striven to make it better for our clients and the companies for whom we have worked. But alas....the future is foretelling another story. Read below. Philip Jay LeNoble, Ph.D. CA

• by Adam Buckman, Featured Columnist, November 25, 2016, 9:36 AM

Imagine a world where all of television is commercial-free. According to one panelist at a session during the January NATPE conference in Miami Beach, that reality is already here for an entire generation of younger viewers.

“There is a generation of viewers who are becoming accustomed to seeing everything without commercials,” said panelist Mark Greenberg, president and CEO of Epix. It was an insight I had never thought of myself, and if this statement had come out of an ad industry panel session, the buzzing in the room would have been palpable.

As it happened, this particular audience of programming types -- content creators, buyers, sellers and wannabes -- let the statement go without any noticeable stir.

Greenberg was part of a panel titled “Scripted State of the Union: Will Creative Excellence Survive Tough Business Realities?” NATPE is the National Association of Television Program Executives. Its annual conference -- formerly a marketplace for national syndicators to pitch their shows to broadcasters -- now attracts attendees from across the entire “content” spectrum.

This particular panel session was not primarily about advertising, but the subject arose when the participants entered a discussion contrasting the scripted shows seen on pay cable and streaming services such as Amazon and Netflix and the ones that are produced for commercial TV.

The consensus was that developing a hit show for a broadcast network still represents a “home run” for anyone who is talented and/or lucky enough to come up with the next “Big Bang Theory.” But since such home runs are rare, creative types are gravitating more to these other program platforms where their creative freedom is not restricted and the compensation, while not on the level of network television, is still nothing to sneeze at.

The place where [creative] people are least likely to go to is conventional broadcast network television,” said one panelist, agent Peter Benedek, a founding partner in the United Talent Agency. “They will freely forsake [the potential for a huge payday] to go somewhere they can really write something they’re going to be proud of,” insisted another panelist, Gary Levine, president of programming for Showtime.

A great deal of the discussion was devoted to a programming executive who wasn’t there -- FX President John Landgraf, who has been at the vanguard of developing edgy comedies and dramas in this current Golden Age of scripted TV. Landgraf’s opinion, which he first voiced last summer, is that there are really “too many” quality scripted shows for audiences to really absorb. His “too much TV” comments have been widely discussed for months in the TV industry.

On the NATPE panel, opinions about what Landgraf said were mixed. Levine was one panelist who disagreed. “We seem to be the only part of the culture that bemoans an abundance of quality programming,” he said. “When was the last time somebody complained there were too many good movies or restaurants in your neighborhood? There are 320 million Americans, and the idea that there’s 400 scripted series is a disaster?”

Elsewhere at NATPE, another panel discussion focused on the intersection of TV content and product-integration. And if we are heading toward a future in which commercial breaks are to be done away with, then integrating brands within TV shows will become all the more important -- perhaps becoming the only way to “advertise” on TV (except for live broadcasts such as sports events whose built-in breaks are tailor-made for commercials and would likely remain so).

Among the participants on this panel -- titled “Masters of Marketing: What Brands Need to See” -- was producer Dan Harmon, best known as the creator of NBC’s “Community.” The sitcom about a community college first aired on NBC and then had its final season last year on Yahoo.

“Community” was known for its brand tie-ins, particularly with Subway sandwiches. One infamous episode in 2012 had an entire storyline in which the brand was the central focus. Not only was a Subway banner festooned across the set, but a guest character was actually named “Subway” and other characters greeted each other throughout the episode with the words “Eat fresh.”

One might have expected Harmon -- a man known for being outspoken and rebellious -- to come out strongly against such an intrusion on his TV show, but he said last week that he never had a problem with it, particularly after he got Subway to agree to not interfere with what he was doing. Among other things, Subway wanted a representative on the set and Harmon refused. To his amazement, Subway backed off of this demand (and others), and still kicked in $300,000 toward the cost of production and Harmon was left to do whatever he wanted.

Harmon said he felt at the time that Subway’s involvement in the show was no different than the involvement of the other corporate partners he had to deal with -- namely, NBC, Sony, Paramount and all the other entities listed as co-producers.

“Everything is merging together now and I’m looking forward to the day [when] there’s simply more people willing to pay money to tell stories,” Harmon said.

Marketing The Potential Of The Connected Car

Commentary

• by Yariella Coello, Op-Ed Contributor, November 28, 2016, 8:00 AM

With Samsung’s recent purchase of connected car firm Harman, the fight over who’ll lead the connected and autonomous vehicle market is hitting the fast lane. This development could prove a great opportunity for marketers to take advantage of the change in behavior these vehicles will create.

When we drive today, all our time and attention is spent focussing on the road and controlling our vehicle. Autonomous, or self-driving, vehicles will change this. Drivers will become passengers and won’t have to concentrate on the road. There will be an opportunity to capture drivers’ attention spans on the road that didn’t exist before, and marketers should take advantage of this.

It is worth noting that connected car firm Harman works on the technology that enables cars to become self-driving; that is, being able to connect a car to the internet. But it will also provide in-car entertainment systems which is where marketing can play a part. 

Cars will soon be an extension of our living rooms. When getting from A to B, we’ll be looking for activities to do during the journey. With our cars connected to the internet, we’ll be able to browse and shop online, watch TV and post on social media. With little else to do, passengers will be more receptive to marketing messages they receive while being driven — especially if those messages are targeted according to their journey and location.

A couple being driven in their self-driving car to a romantic weekend getaway could be given tips on local restaurants and things to do when they arrive. Using location and journey data, you may be able to determine that they left their home a few hours ago, may be getting hungry and therefore offer them information and promotions from a nearby service station. On the way home, the hotel they were staying in could ask for feedback as they surf the internet or offer a discounted stay if they re-book during the journey.

Another potential play for marketers is in creating mobile apps specifically for autonomous vehicle passengers. Apps that can be used or played according to location, much in the style of Pokemon Go, could increase passenger engagement with marketing messages as they travel. 

Connected car data could also be used by marketers and advertisers to understand who is likely to drive past a certain billboard. Tracking location data over time can tell marketers if a person takes certain routes at specific times of the day. Marketers can then choose where to place outdoor advertising campaigns and when. Mobile apps can also complement this by encouraging passengers to engage with billboards through games as they drive by. High engagement on these ads will show that the campaign has been effective, and vice versa.

The free time that connected cars will provide drivers and passengers should be used by marketers to provide targeted and personalized messaging. Nothing turns a consumer off more than irrelevant and ill-timed marketing. Marketers will have a good opportunity to engage with consumers on an entirely new medium that audiences will not have switched off from yet. 

There will be a certain novelty to self-driving cars in the beginning, along with a sense of prestige. Marketers should tap into that and make the content served through connected cars feel exclusive to the passengers of that car. There is a great opportunity for marketers to really rev up their campaigns through using connected vehicles. Those to take advantage of our self-driving futures will find themselves miles ahead when other marketers are trying to play catch-up.

Radio Vs. The Rest: How It Stacks Up

By Bob McCurdy -

November 27, 2016

In the dark. It’s not a good place for any of us to be when it comes to understanding radio’s impact, role, and value it can bring to a media plan. With Nielsen’s Commspoint, we can avoid the dark and shed light on exactly how radio stacks up against 70 other media options available to advertisers.

Last week, I worked with an agency that was interested in understanding how various media channels performed against their client’s media objectives. The advertiser was targeting 18-49 adults who frequented quick-service restaurants (QSR) across several markets in a single state.
The media objectives were to “build reach quickly” (get the word out), “control messaging by time of day and day of week” (breakfast and lunch specials), “generate heavy frequency” (share of voice), “target by MSA” (specific test markets), while enabling consumers to “visualize the product” (looks delicious).

It was also critical to communicate that the advertised item was a “good-tasting, high-quality” product with the ultimate media goal being to generate “awareness” and ultimately “trial.”
Take a few minutes to peruse the chart below and check out how the various media channels performed against the media tasks and tactics referenced above. Also take note as to how AM/FM radio performed against various digital and mobile media options.

To quickly refresh, Commspoint results are derived from an in-depth U.S. consumer survey that quantifies each media channel’s suitability to deliver against certain media tasks and a media expert panel that quantifies each media channel’s ability to execute against various media tactics. This tool is the backbone for the vast majority of channel planning done in the ad industry.

A few quick observations:
– AM/FM radio ranked #2 out of 71 media channels evaluated, and radio’s overall score was 83% of TV’s (62.6/75.8). Note, this doesn’t take into consideration each medium’s “pricing” but does take into consideration each medium’s reach potential. With “pricing” factored in, the gap between radio and TV would likely be even smaller.

– Radio contests/promotion, a channel which is often requested by agencies and clients in RFPs as added value, ranked as the 5^th most effective channel in this analysis.
– AM/FM radio’s overall impact was 37% greater than digital online audio (Pandora, Spotify).
– AM/FM radio’s overall impact was 18% greater than YouTube desktop and mobile.
– AM/FM radio’s overall impact was 26% greater than Facebook mobile or desktop ads.
– AM/FM radio’s overall impact was 7% greater than mobile video.
Note bad for a medium that’s been around for a century.

The media channels highlighted in yellow are audio channels we offer. Those highlighted in blue are media channels that we can mobilize for any advertiser interested in a cross-platform campaign. It’s important that we effectively highlight more than our on-air assets, as we can provide advertisers with sampling opportunities, mobile advertising, event involvement, e-blasts, professional recommendations in the form of DJ endorsements, mobile texts, and participation in experiential events, all of which can enhance any marketing effort.




Keep in mind that each Commspoint analysis is unique as it is based on the designated target as well as the respective weighting assigned to the various tasks and tactics.
We have done dozens of similar analyses involving automotive, retail, and other categories, and in just about every instance, where the ultimate goal is “awareness,” “consideration,” or “trial,” AM/FM radio shines. And while some of the new media perform quite well, AM/FM radio’s star, more often than not, shines brighter.

The media landscape is in constant flux, requiring all of us in advertising, both on the sales and buying/planning side, to re-evaluate what we “think” we “know.” Commspoint can help with this effort.

The New York Times

November 28, 2016

AT&T Appeals to Cord-Cutters With DirecTV Now, a New Streaming Service

By DANIEL VICTOR NOV. 28, 2016

Photo

John Stankey, the chief executive of the AT&T Entertainment Group, speaking in New York on Monday about DirecTV Now. Credit Dave Kotinsky/Getty Images

AT&T unveiled a streaming television service on Monday aimed at the millions of Americans who have broadband internet but no bundled TV package, offering an extensive list of channels for less than most cable plans.

The service, DirecTV Now, includes many of the channels, including ESPN, TBS, AMC and the Disney Channel, that so-called cord-cutters frequently miss after they ditch cable. Live television can be streamed to mobile devices, tablets, computers and living-room televisions.

With the cheapest package offering 60 channels for $35 per month, the video service joins competitors like Sling TV and PlayStation Vue in drastically undercutting traditional cable and satellite packages, which often cost more than $100 per month.

John Stankey, the chief executive of the AT&T Entertainment Group, said it would appeal to people previously uninterested in or unable to get DirecTV satellite packages.

“It opens up a whole new segment of the market that we’ve typically been ineffective at addressing,” he said.

While the service will be available to all beginning on Wednesday, AT&T Wireless customers will have an extra advantage: Watching DirecTV Now on their mobile devices won’t count toward monthly data limits. Since streaming video rapidly eats through data, customers on carriers like Verizon and Sprint would be at a disadvantage.

“The last thing you want to do when you’re binging or enjoying entertainment is trying to calculate how many gigs I’m using or where I am in my data plan,” said Brad Bentley, the chief marketing officer at AT&T, referring to gigabytes of data.

That perk could stir complaints about competitiveness and the effect on consumers as media and telecommunications companies consolidate. Several politicians, including President-elect Donald J. Trump, expressed concern after AT&T agreed in October to buy Time Warner, which owns HBO and CNN, for about $85.4 billion.

Still, the service represents a potentially enticing offer to cord-cutters and so-called cord-nevers, those who have never had cable or satellite service. There is no annual contract, and users can cancel anytime. There are no hefty cable boxes to install, and home visits by technicians are not necessary. Signing up does not require a credit check.

Some analysts were optimistic about the company’s ability to attract customers without cannibalizing DirecTV’s satellite business. Macquarie Research said in a recent report that the service could sign up one million customers “in short order,” while analysts at Instinet called it “compelling and attractively priced,” predicting it would gain “considerably more traction than Sling TV or PlayStation Vue.”

But there are several drawbacks that could prevent widespread adoption.

The service does not include CBS, which has many of televisions’s top-rated programs, including “The Big Bang Theory” and “N.C.I.S.”

Sports fans might also have reservations. The more expensive channel packages include regional sports networks, but premium channels, like N.F.L. Sunday Ticket, are not included. The lack of CBS means customers would also miss out on N.F.L. games and the N.C.A.A. basketball tournament.

While using DirecTV Now, no more than two devices can stream at the same time, which could be a problem for families with multiple TVs and devices. Also, 4k resolution is not supported, and some markets will not have access to their local ABC, Fox and NBC affiliates.

Also, the service will not initially have DVR capabilities, including the ability to pause live TV. Mr. Stankey said the feature would be added in 2017.

Prices range from $35 for a package with 60 channels to $70 for a package with more than 120 channels, though an initial promotion will offer a 100-channel package for $35. HBO and Cinemax cost an additional $5 apiece.

Those prices are about in line with its closest competitors in the expanding market of streaming video, as more companies seek to pick off cable customers. Sling TV packages start at $20 for 31 channels, while PlayStation Vue starts at $30 for 48 channels.

With enough streaming services, cord-cutters could cobble together a suite of channels and on-demand video that would rival traditional cable bundles in both selection and price.

HBO Now is $14.99 per month. CBS has its own streaming service, commercial-free for $9.99 and with commercials for $5.99.

TV Trends: TV Networks’ Reach Metrics - October 2016 -- Pivotal Research Group

By Brian Wieser November 29, 2016 Wall St. Speaks Out...on Media Archives

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In efforts to study a given television network or network group, ratings tend to capture the bulk of focus in the press and among investors. However, audience reach can be an equally important barometer of health. In this note we review reach data for major English-language national TV networks during the month of October 2016 among households, people 2-99, people 2-17 and people 18-34.

While the presence of highly rated programs often lead advertisers to choose to buy inventory from one network over another, large advertisers typically optimize their television budgets across networks for reach and frequency. Consequently, when an advertiser negotiates to buy a package of gross ratings points from a given network, a package of ad inventory with wider reach generally offers superior value vs. a network with narrow reach for an identical number of GRPs. This is because there should be less unintended duplication in the former package relative to the latter. Meanwhile, MVPDs need to concern themselves with the same metric to know how many different consumers watch a given channel or group of channels. Wide reach will usually be positive for a network, at least if it indicates a significant number of consumers might shift MVPDs if that network was unavailable on an incumbent’s service.

Narrow reach can be harder to interpret. For advertisers, narrow reach is usually negative by itself, but neutral in context of a campaign involving many networks. For MVPDs, narrow reach can be negative if it means few consumers are watching, although both distributors and networks know that programming covering a wide range of tastes can ultimately make a distributor’s overall offering stickier within individual households. A small number of households may also turn out to be intensive viewers of a network, making that network disproportionately valuable in a bundle.

During October 2016, the big four broadcast networks once again dominated the industry’s reach metrics with 85-88% of households watching each network for at least one minute during the month. On a people 2-99 basis, the figure for these networks ranges from 72-75%. Among 18-34s, the same networks dominate with a range of 58-63%. Reach of these networks fell only slightly year-over-year (October 2016 vs. October 2015) among people 2-99 for the leading broadcast networks, and rose significantly – by between 2-4% – for 18-34s. The CW, TBS, ESPN, FX and AMC were among the next-broadest reaching networks for each of households, people 2-99 and 18-34s. TNT was among the top ten for households and people 2-99, while Comedy Central was among the top ten for 18-34s. The median change in reach on a year-over-year basis among networks we looked at was essentially flat among all people and adults 18-34, but fell by -1.5% among households. Most networks continue to have relatively low reach, as only the big four broadcast networks maintain greater than 50% reach among both people 2-99 and 18-34. The fall-off beyond the top handful of networks is relatively steep, as the #10-ranked network for adults 18-34 has only 29% reach, while #10 for people 2-99 has only 34% reach. Among households, #10 had 45% reach. Median reach for a network for networks assessed here among households is 26%, while median reach among people 2-99 is 17%.

During October, the most significant year-over-year improvements in reach against 18-34s came from Fox News, the Fox broadcast network, CBS, NBC and Time Warner’s CNN. The expanded reach for Fox News and CNN is unsurprising given the election, but the expansion in reach among broadcast networks suggests some degree of success in airing programming that appeals to younger viewers. It may also be that audiences prone to cord-cutting and cord-shaving re-concentrate their viewing on broadcast networks, benefitting those networks by default. Reach fell most significantly among younger audiences at AMC’s BBC America, NBCU’s CNBC, Viacom’s Spike, NBCU’s Esquire and Time Warner’s TBS.

Among households, reach improved most at Fox News, Fox Business, Viacom’s Logo, Fox’s National Geographic and Viacom’s MTV. Among households, reach fell by the most at NBCU’s CNBC, Viacom’s TV Land, Spike, TBS and NBCU’s E! We note that Spike and TV Land were likely impacted by tier-ing of these networks at Comcast earlier in 2016. Among all people 2-99, reach improved most at Fox News, Fox, NBCU’s MSNBC, NBC and National Geographic. It fell by the most at CNBC, TBS, TV Land, Discovery Family Channel and Esquire.

A data-set for reach and year-over-year change in reach for major networks follows in this note.

Boomers Or Bust This Holiday Season

By Sherry Smith, Columnist Monday, Nov. 21, 2016

While store décor turned to yuletide twinkle before the candy corn was totally off the shelves, this week is when the holiday shopping season kicks in. According to projections, it will be a big one, too. The National Retail Federation expects November and December retail sales to hit $655.8 billion, a 3.6% increase from 2015. You can bet that a large portion of those dollars will come from Baby Boomer wallets, too. A NerdWallet survey found that 86% of boomers intend on purchasing gifts with an average expected expenditure of $712 each. The so-often-top-of-marketing-mind Millennials, on the other hand, expect to spend just $499 each. Even if you’re not expressly targeting Baby Boomers, here are some considerations that will ensure you’re still seizing opportunity with the demographic…and its purchasing power. 1. Make your platforms and channels work together Consumers are constantly bombarded by marketing messages across multiple channels and brand interactions across various multiple platforms. One study showed that consumers rate advertising via direct mail, print, television, email and online as equally influential in their decisions about where to shop and what to buy this season. It’s always important to maintain brand consistency throughout customer touch points; it may be even more so when dealing with Baby Boomers. More than other age groups, Baby Boomers reflect the old adage that people like to do business with people they know, like and trust. As this demographic has moved online, they’ve continued to shop at retailers with which they’re familiar and comfortable. The challenge is to keep their experience familiar and comfortable regardless of the platform and channel. From color to vocabulary, ensure you’re maintaining your brand image, messaging and promise at every touchpoint. For example, if your brand has a strong reputation for excellent service, make sure your digital channels offer easy access to always-on customer support. Give customers in store access to the same offerings as online, and allow them to receive and return their merchandise at the point of their choosing, not necessarily the point of sale. Lastly, demonstrate your appreciation through reward and other incentive programs, because fidelity shouldn’t be taken for granted. In a 2015 report, loyalty and analytics company CrowdTwist found that Baby Boomers are actually 15.8% more willing to switch brands than are Generation Xers. 2. Remember, email is mobile A funny thing happened on the way to mobile ubiquity. While nearly every other aspect of our digital lives has migrated toward social, email has emerged consumers’ channel of choice for marketing communications. The preference extends across all age groups, reaching its peak in boomers, with 73% preferring email over social. Reading email is now also one of the activities we do most on mobile devices. Emailmonday reported that mobile now makes up for 15 to 70% of all email opens. When it comes to marketing email in particular, Yesmail reported a 53.5% mobile open rate for marketing emails in the US in 3Q2015. As mobile continues  to displace desktop usage, these numbers will only increase. No matter what your target demographic, all emails should be created for easy mobile consumption. For Baby Boomers specifically, be extra sure they’re smaller-screen friendly. Use smaller blocks of text with bigger fonts. Make them visually appealing with lots of images — Boomer’s preferred marcom format  — and useful through easy navigation not only to your other channels but to customer service, as well. 3. You can relax and enjoy your turkey. Because most boomers will. research from Boston Consulting Group finds Millennials are far more likely to shop on Black Friday, with 63% saying they expect to hit the sales vs. only 26% of Baby Boomers. Similarly, Cyber Monday is less of a draw to older Americans, who are skeptical that these days actually offer the best deals. And even those who do shop over the holiday weekend don’t intend on allowing bargain hunting to consume their free time. NerdWallet’s survey showed 78% will spend five hours or less shopping on those days. In many ways, Baby Boomers are very similar to other demographics. They buy gifts in the same categories including electronics, apparel and even toys — as many as 25% have kids aged 6–12 in their homes. They’re just as connected to their smartphones and they do their digital due diligence before making purchases. When it comes to holiday marketing, though, you don’t necessarily need a whole dedicated strategy, but if you want a booming holiday, don’t dismiss the Baby Boomers.

CBS Radio Updates Prospectus To Go Public+CBS Pulls in Huge Share of Major Market Radio

November 21, 2016

On Friday, CBS Radio filed an updated S-1 with the SEC as it continues along the path to take the radio division public. The radio stock will trade as CBSR. Here are some other details from the prospectus we thought you’d find interesting.

Some of the details in the S-1 include revenue numbers we rarely get to see from CBS being that it spends so little time discussing radio on its quarterly earnings calls. The prospectus says CBS Radio generated $1 Billion in broadcast revenue from its 117 stations in 2015. That made up 81% of CBS radio’s total revenue for that year.

Another $229.5 million was generated from digital, events and other revenue, which was 19% of the company revenue for the year. In 2015, CBS Radio generated 75% of its revenue from local advertisers and 25% from national advertisers.
The company has said it would like to spin the radio division off in early 2017 but there have also been hints that something could happen sooner than that.

CBS Pulls in A Huge Share of Major Market Revenue

That’s according to the detail in the S-1 the company filed on Friday. CBS Radio’s 117 radio stations are located in mostly large markets across the country, including all of the top ten markets and 19 of the top 25 markets.

CBS cited an SNL Kagan report that says the 25 top radio markets generated $6.51 billion in radio advertising revenue in 2015. CBS says its share of revenue in the top 25 markets was 25% in 2015. “In 2015, our average revenue per station in these top 25 markets was twice that of our average revenue per station in non-top 25 markets.”

CBS Radio generates about 90% of its revenue from the 19 top 25 markets it operates in.

In Fake News Era, TV Retains Top Spot In Voter Influence

• by Philip Rosenstein, Staff Writer, 4 hours ago

At a time when the specter of fake news is increasingly troubling for online news aggregators, TV news is even more necessary.

Commentators have questioned the role that Twitter and social media played in the election of Donald Trump. The emergence of “fake news” stories has exaggerated the lack of trust in the media, particularly by those who discount out-of-hand mainstream outlets as a media arm of the political “elite.”

The dearth of editorial oversight on various social-media sites that aggregate news and disseminate it to millions must be addressed. Still, studies have shown a majority of registered voters turn to television as their main source of news.

A recently released Morning Consult survey commissioned by the Television Bureau of Advertising (TVB) in battleground states immediately following the November 8 elections found TV, among all media, plays the most important role in influencing voters.

The survey showed that 58% of registered voters in battleground states saw TV as the most important influencer in voting decisions. A strong 71% of respondents increased their awareness of candidates' issues watching television, and 57% gave consideration to voting because of TV programming.

While only 33% of polled voters found social media trustworthy, more than two-thirds (68%) of respondents across all political leanings, ages and genders found local TV broadcast to be their trusted medium of choice.

The reach afforded TV ads also plays a crucial role. TV may not have the targeting capabilities that online marketing strategies offer, but its scope and scale remain unmatched in the political advertising landscape. From a regulatory perspective, the FCC can ensure, to a point, reliable guidelines for what is considered news.

It feels appropriate that consumers are relying on well-established news outlets to obtain their political information. However, there has been a significant increase in social-first news consumers, which unfortunately only exacerbates the problems posed by the dissemination of fake news stories.

The issues that arise from this skewed type of news consumption have dire consequences. As reported by MediaPost, President Obama addressed this in one of his overseas news conferences:

“If we are not serious about the facts and what’s true and what’s not, particularly in the social-media era when so many get information from sound bites and snippets off their phone, if we can’t discriminate between serious arguments and propaganda, then we have problems.”

Nielsen Expands Digital Ad Ratings With Insight Service

• by Wayne Friedman, 4 hours ago

Nielsen is launching a new service of its Digital Ad Ratings -- DAR Publisher Insights  -- which allows digital publishers to achieve a deeper analysis of advertising campaign data. DAR Publisher Insights includes a Digital Reach Benchmark, which ranks publishers against both reach and on-target percentage for campaigns. Publishers can then view their efforts in comparison to their competitors.

Publishers can access custom metrics, including reach efficiency: “The rate a platform translates incremental impressions to individual targets.” Publishers can also get incremental reach -- incremental value in cross-platform campaigns.

DAR Publisher Insights says it can provide deeper audience profiles -- beyond age and gender -- to includes household income, ethnicity, education and occupation.
Using Nielsen Catalina Solutions and Nielsen Buyer Insights data, DAR Publisher Insights can give publishers return on ad spend research.

Nielsen Managing Director of Digital Andrew Feigenson stated: "It is time for the industry to evaluate campaign success using audience metrics that go beyond on-target percentage, and that are truly comparable and consistent between media types."

Digital Ad Ratings are available in over 20 markets globally.

ABC is exploring a 24-hour digital news channel

NAB SmartBrief

By Claire Atkinson

November 20, 2016 | 2:31

Modal Trigger

Photo: Getty Images

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The election is over, but ABC is exploring the possibility of a new 24-hour digital news channel.
Our distribution tipsters say that some months ago, ABC owner Disney has been looking into such a news service channel, though it wouldn’t launch until next year.
ABC used to have its own stand-alone news channel, ABC News Now, which it rolled together with Univision’s Fusion.

But when ABC exited the Fusion joint venture, it left the network without a stand-alone channel, just at a time when other outlets were recording sky-high ratings thanks to the election.
Our sources say ABC News chief James Goldston is spearheading the effort, and is bullish on it given the election bump from recent Facebook live experiments.
Before anything can launch, Disney boss Bob Iger needs to head for talks with Altice, since the Mouse House’s deal with the big cable operator is said to be up in early 2017.

Altice, which acquired Cablevision last year, has been making noises about keeping the lid on programming costs, and talks with Disney will be the first major test of its negotiating abilities

A World Without Commercials? Contemplating The Future Of TV

• by Adam Buckman, Featured Columnist, over 1 hour ago
• Recommend (5)

Are commercials doomed? That question occurred to me as I contemplated the writing of this TV Blog on the future of television.

I asked myself an open-ended question: What will the future of television be like? As I thought about the answer, it wasn’t the nature of the programming -- i.e., content -- or the proliferation of platforms for distributing that content that kept coming to the forefront, although those will continue to evolve in various ways.

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Instead, it was the whole question of how, or even whether, advertising will continue to be a part of it. It was then that I began to realize how much the concept of the TV commercial -- the thing that has provided the financial and to a great degree, the creative underpinning of the whole business since time immemorial -- is under assault.

Consider the question you hear all the time at media industry “summits” and all-day conferences. Invariably, a speaker preparing to make a point about the evolution of media and advertising will warm up his audience by asking for a show of hands from anyone who routinely fast-forwards through commercials when they DVR their favorite shows. Almost everybody raises their hands, of course, even when these audiences are filled with people in the advertising business. Nobody likes commercials -- not even them.

For decades, a viewer really had no choice but to grin and bear the commercials on TV, since there was almost no means for enjoying TV shows other than by watching advertiser-supported broadcast television with its commercial breaks. Commercial-free PBS was an option, but few people could live on a TV diet that was PBS-only.

HBO eventually introduced the pay-TV/no-commercial model, and although it took years for HBO to evolve and grow, it is that model that appears to finally be taking over the TV business. Today, many programming services are commercial-free (Netflix being the highest-profile example, along with HBO and Showtime) and many people seem willing to pay for them without batting an eyelash.

To me, that’s the great divide in television -- the tension between so-called “free” TV and TV you pay for. Younger people have no idea that there was once a time that many of us can still remember when paying for TV was something only a nut would do. TV came to your home for free, over the air, as long as you purchased a TV set. We all understood that the commercials -- i.e., the sponsors -- paid for the shows so we didn’t have to.

At some point, basic cable decided to try and see if it could earn money both ways -- by selling commercial time while also collecting subscriber fees. Incredibly, the viewing public was OK with this scheme and cable TV, with its dual revenue streams, became a great business.

Today, however, basic cable’s reliance on commercial revenue has collided head-on with steep ratings declines resulting in lower ad rates. So with commercial rates in free fall, the cable networks have loaded up on commercials to head off the revenue shortfalls. However, the commercial breaks on basic cable have become so interminable and frequent that they are depressing viewership even more. Commercial-hate inevitably grows out of such schemes.

This is part of the reason why you’re hearing so much about cord-cutters and even “cord-nevers” -- people who won’t even consider subscribing to so-called “linear” cable. But you never hear about people who you might call TV-cutters or TV nevers. Instead, what you have is an increasing number of people who can’t live without some sort of TV and don’t seem to mind racking up fees on their credit card bills for streaming services.

These people seem proud to be exercising freedom of choice when it comes to their TV viewing, but they’re paying for it. Meanwhile, they’re dodging exposure to any commercials.

If this kind of TV viewing represents how the majority of TV (or “video”) content is to be consumed in the decades to come, then the idea of taking a break for a commercial would indeed appear to be doomed.

So what will replace commercials? In all likelihood, you will see more and more in-content advertising -- with sponsors paying for their brands to be part of storylines or at the very least, seen during a show. We’ve already seen this for several years on the broadcast networks (remember how Subway took over “Community” on NBC?).

In the future, the TV shows and the commercials will be one and the same. And viewers will pay to watch all of it.

Political Discourse: Some Thoughts For Radio Sales Teams

Eric Rhoads - Chairman Deborah Parenti - Publisher

 

 

 

 

(By Radio Ink Chairman Eric Rhoads) Today, and over the following days, you, the sellers of radio, will be faced with some difficult conditions. No matter who won the election, 50 percent of your customers were going to be depressed and upset, and 50 percent were going to be elated. Some of your customers will see this result as the end of America, while others will see it as the great hope for their business. You, as a radio seller, cannot win by stating your opinions to your customers.

Instead, if and when it’s brought up, you need to let them talk, and you need to listen. Not engaging in a political discussion, but redirecting the discussion to their business. Engagement may fuel a distressed customer’s current state of mind and keep their decision-making locked up. Those who are upset have to continue to do business, and now, more than ever, they need to remain visible and drive people to that business. Those who see opportunity need to do the same.

The next few days will be especially emotionally charged. Things may calm down a little after that, but this won’t fade fast. And some will carry this for the next four years. It’s important to understand that any problems people see coming — “the end of the world,” “the end of America,” and so on — are more perception than reality, especially in terms of the areas that will affect their businesses. The reality is that we all have to conduct business as usual and get back to the core tools that make us successful. That means staying visible and asking potential customers for business.

Even if things were to change dramatically, it would probably be a couple of years before any direct impact is seen on businesses. (Other than stock market impact, of course.)

As you speak with customers, I encourage you not to engage in political discussion, and you certainly should consider avoiding your personal opinions in discussion. Let them vent, and then ask, “How does this impact your business, and what are you going to do to make sure your business continues to thrive?” Then wait for an answer. Help keep them focused on BUSINESS, and help them see the need to keep it strong and growing.

Many businesses have stopped promoting because of the polarizing environment, so now it’s time to redirect the conversation to their business and help them move forward.

Help them see that nothing will change anytime soon, and maybe nothing will change much at all, in terms of any impact on business. Help them see that they need to continue to focus on their business, no matter what direction they think things will go.

Remember that there is opportunity in all things.
Also, the 50 percent who hoped for this result are feeling pretty good right now, and this might be a great time to reach out to them and sell them because of that confidence. And they have to be reminded that the same is probably true for their customer base.

You may also want to consider that your personal social media accounts remain neutral (and certainly your business- or station-related accounts, unless of course your station is in the political arena). Also remember, your personal account is perceived to be business-related just because of your affiliation with your station, and some on your friends list may be customers.

Personally I never ever share my political or religious thoughts because it’s bound to irritate half of my readers, advertisers, and employees. Tempting as it is, one passionate post seen by one of them could turn them into an enemy because things are so polarized at the moment.

Don’t take the bait.
Consider being sensitive to what you comment on in social media, because it could result in your losing a good customer who happens to see it. As a media company that does not “do” politics, I consider our job is to remain Switzerland. Why take a chance of losing advertisers or readers or subscribers because of our personal opinions? You may want to consider that for your stations.
People are so emotional right now that they could easily get even by cancelling an ad campaign. No matter what, 50 percent will disagree with you, and some are so angry that they could take it out on you if you share your opinion. No matter which way the election ended up, half of your customers would have disagreed with the other half. Before you start firing off your opinions, ask yourself if you care if it affects your business and your ability to sell advertising. If you do, think twice.