AUTOMOTIVE

Automotive TV Spending Down 22% In September

• by Tanya Gazdik , Yesterday

Automakers spent an estimated 22% less in September on national TV compared to the same period a year ago, according to iSpot.tv. 

Total spending was $211.5 million, compared to $239.5 million in September 2021. 

TV ad impressions also slid, but not as much, down 10.6% year over year to 24 billion for September 2022 compared to 30.8 billion a year ago. 

The top five brands by spend for the month are Honda ($21.2 million), Chevrolet ($19.3 million), Hyundai ($18.5 million), Toyota ($17.7 million) and Nissan ($16.4 million).

The most-seen automaker ads for the month are Honda: Forever Determined (4.58%), Nissan: 60 Years In 30 Seconds (3.33%), Ram Trucks: Moments (2.70%), Lincoln: A Glimpse (2.49%) and GMC: Outside And In (2.15%).

Honda aired 22 times more national TV ads year-over-year in September, which is part of the larger spend number (both relative to its peers and its own estimated national TV ad spend a year ago).

Chevrolet, meanwhile, spent 10% less year-over-year, but made college football a larger part of its September ad buy, up from 0.55% to 2.84%. 

Hyundai was focused on NBC, which accounted for nearly 76% of its September spend due in very large part to the NFL (almost 85% of Hyundai’s NBC spend was allocated toward "Sunday Night Football" and "Football Night In America").

The top five brands by share of automaker TV ad impressions for the month were Hyundai (8.18%), Toyota (8.12%), Chevrolet (7.73%), Nissan (7.17%) and Honda (7.06%).

The biggest spend increases among top 15 brands by spend for September compared to a year ago were Honda (+153.8%), GMC (+108.3%), Acura (+69.1%), Subaru (+58.4%) and Mercedes-Benz (+41.6%).

Honda emphasized the NFL far less compared to last September – 39.9% of est. national TV ad spend in Sept. 2022 vs. 89.8% in Sept. 2021 – but the brand also spent on SportsCenter and various HGTV shows as well, which was not the case in Sept. 2021. 

GMC’s increase comes in large part due to the NFL, as it spent nearly three times more during games this September compared to a year-ago. 

Acura doubled its NFL spend year-over-year, but also focused on Bravo's "The Real Housewives of Atlanta" (No. 2 by spend for the brand after Acura did not buy national linear ads during the show last September).

The top programs for automakers by TV ad impressions share of voice for September 2022 are: NFL (11.92%), college football (11.12%), SportsCenter (1.13%), MLB (1.10%) and "Today" (0.96%).

Football’s return means automakers are relying on NFL and college games for reach once again. In September 2022, 23% of auto brand TV ad impressions are delivered by NFL and college football games, versus 17.8% in Sept. 2021. 

By emphasizing TV ad impressions during football games in September, automakers had a clear focus on the broadest reach for new messaging, said Stuart Schwartzapfel, senior vice president, media partnerships at iSpot. 

“Creatives around new 2023 vehicle inventory took center stage for many auto brands, while others leaned on broader brand messaging to attract potential customers on the promise of both present and future innovation,” Schwartzapfel tells Marketing Daily.

Share of TV ad impressions for reality programming also came in slightly higher year-over-year, at 12.10% (compared to 11.92% last year).

The top networks by share of automaker TV ad impressions in September 2022 are NBC (11.31%), FOX (6.90%), ESPN (6.25%), CBS (5.86%) and ABC (5.36%).

Sunday Night Football helps guide NBC to the top, accounting for over 47% of automaker TV ad impressions on the network (up from 38% the previous year). 

The NFL delivers nearly 41% of automaker TV ad impressions on FOX as well, while college football makes up 46.1% on ESPN. 

Tennis (and retiring superstar Serena Williams, in particular) is also a boost for ESPN, as the U.S. Open contributes 7.5% of automaker impressions on the network in September, compared to 3.1% last year.

 

COMMENTARY

Inflation Is Squeezing the Sandwich Generation into Paninis

• by Corinne Casagrande , 98 minutes ago

Rising costs put pressure on the sandwich generation, defined as adults who have a parent 65 or older, and are either raising a child under 18 or providing financial support to an adult child.

More than half of U.S. adults aged 40 – 49 find themselves sandwiched between an aging parent who needs their time and children who need their time and financial support.

Sandwichers in their 50s and 60s are more likely to be helping an adult child financially, in addition to caring for an aging parent. Spread over these three decades, 23% of U.S. adults fit the sandwich generation description, per Pew Research Center.

The sandwich generation spans 30 years in age because financial independence for young adults is coming later and later. Only about a quarter of young adults are financially independent by age 22 (Pew).

Parents stepping in to help with recurring expenses like rent, bills and groceries, or simply continuing to provide those for adult children still living in their houses, are disproportionately affected by price increases. Inflation in services like rent tends to be sticky --  prices don’t tend to go back down.

With rent up about 6% in the past 12 months, higher rents could result in more time with adult children in the house, or a longer timeline of supplemental support.

It's not just first apartments that are more expensive to live in.  The cost of senior care facilities is rising as providers struggle to staff and deal with the higher costs of supplies like food.  The cost of nursing homes and adult daycare services was up 4.8% in August, per CPI numbers.

Middle-income seniors may increasingly find themselves looking to the sandwich generation for help. NORC and the University of Chicago just released an update to their “Forgotten Middle” study, predicting that by 2033, more than 11 million seniors aged 75 and over may not be able to pay for assisted living, but will also not qualify for Medicaid.  These seniors on a fixed income will also have to look to family for care and potentially a roof over their heads.

Beyond the financial burden, caregiving for aging parents and children is a source of significant stress, especially as sandwich caregivers try to balance work responsibilities.  In families with children under 18, 62.3% of families have both parents working (per 2021 BLS data)  and balancing childcare. Add on doctors’ appointments and other duties of care, and the most unaffordable asset is a caregiver’s time.

When marketers look at dual-income households in their data and identify parents with children that can still be on their health insurance, we should consider that the household budget and discretionary income are more stretched than it can appear. This year, sandwich ingredients are inflated 13.5% at the grocery store, a perfect condition for pullbacks and substitutes. Whether buying lunch for their children and parents, sandwich generation caregivers are looking to save wherever they can.

This concept of time savings and money savings are key factors for marketers to remember when developing plans to reach this sandwich generation.

 

Horizon Analysis Reveals Demassification of Gen Z Media

• by Joe Mandese  @mp_joemandese, Yesterday

Unlike any generational cohort before them, Gen Z -- young adults born after 1997 -- eschew the kind of media knowns for mass reach and scale, especially TV, print and out-of-home, according to a Horizon Media analysis released Monday.

Not surprisingly, the report -- Horizon Media's "Gen Z Field Guide" -- finds they over-index on hyper-targeted digital media, especially social media platforms.

"Sure, social media is the primary channel for Gen Z, but it's not just YouTube, Snap, TikTok and Instagram," the report notes, adding, "They're spreading their fingers wide across smaller apps that serve distinct functions."

In fact, the report shows Gen Zers utilize a wide variety of apps based on function and personal needs, including "discovery" (Reddit, Spotify, Pinterest, etc.), "privacy" (Discord and Telegram), "intimacy" (BeReal and Geneva), and "live streaming/gaming" (Twitch, YouTube Live).

"As Gen Z's influence on commerce and culture continues to grow, brands that learn to connect with these subcultures will thrive," states Maxine Gurevich, senior vice president-cultural intelligence in Horizon's Why Group. "To drive critical mass and conversion, niche and relevancy at scale will trump traditional reach and frequency tactics. Capturing Gen Z's attention requires breaking conventions to develop brand experiences that authentically suit their algorithms. There's a lot of noise when it comes to influencer content, and Gen Z is looking for more intimate spaces to connect on a personal level."

The five categories and emerging subcultures identified by Horizon include:

• Gaming: Streetwear X Gamers, Gamer Girls

• Entertainment: Horror Healers, Poetic Connectors

• Education: Adult-ing Hackers, Scientific "Edutainers"

• Fashion: Maximalists, Real-Time Fashionistas, Up-thrifters

• Beauty: Cursed Cosplayers, Beauty ASMR-tists, Cover Boys

InsideRadio

 

RTDNA Study Shows Listeners Trust Local Radio News.

• 11 hrs ago
 

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Can local radio's newscasts, and news or talk programs, be trusted? That was one of several key questions tackled by The Radio Television Digital News Association (RTDNA) in conjunction with Magid, as part of an online survey conducted earlier this year among 2,000 weekly local news consumers.

The results show that more than half (51%) of listeners to a local radio station's newscasts or programs say they trust the news source “a lot,” while 41% “somewhat trust” it. Compared with other local news sources, that level of trust is second only to local TV newscasts (58% trust a lot), tied with local news apps and ahead of local news websites (49%) and social media from a local news source (40%).

Overall, exactly half of survey respondents – who range in age from 18 to 64, with an even split between men and women – have the highest trust level in local news media, with 60% of those identifying as Democrats trusting a lot, vs. 48% of Republicans and 39% of Independents.

On average, though, half of participants say they have also questioned the validity of news, with 49% having ever wondered if they can trust news from radio. The reasons radio news listeners give for distrust include exaggerated, far-fetched or one-sided stories, or involve coverage of political, national or weather-related news.

While 1 in 5 surveyed say local news sources have “fake news” – with 19% of regular local radio news listeners making this claim – that number's significantly higher among viewers of cable news networks (47%) and network evening newscasts (32%), with 20% of local TV stations' local newscasts viewers having this opinion. The sample defines “fake news” as news that “you can not trust,” “are not true,” “reported in a slanted way” or “pushes a false narrative.”

Magid's sample proves well-qualified to make these judgments, as 78% use a local news source on a daily basis. Millennials and GenX-ers drive radio news listening, with 43% and 38% respectively listening daily, vs. 27% and 22% for GenZ and Baby Boomers. While local TV is the most popular source for the older two groups, social media leads for the younger groups.

RTDNA's report admits that social media, as the second most used local platform daily and easily the least trusted local news platform, represents a significant challenge, especially with journalists posting personal opinions who risk hurting their trust relationship with the audience. Backing this up is the finding that 60% of local news viewers surveyed agree that if one journalist from a local news source is not trusted, they would be less likely to use that source overall. “The use of social media is both a blessing and a curse,” RTDNA President and CEO Dan Shelley says. “[Any journalist] sharing too much personal info contributes to an erosion of trust.”

As a result, RTNDA and Magid recommend trust-building strategies for all local news sources going forward, stressing in the report that this is neither a generational challenge nor one primarily rooted in political orientation. Among the recommended actions: reviewing internal systems in newsrooms to ensure a process for double-checking the facts, using known and experienced journalists to cover important stories, balancing coverage by sharing differing opinions about and accounts of controversial topic and events, improving the vetting of content on all news service platforms, and not allowing content on business or private social media accounts to question sources' ability to objectively cover the news.

"Local news sources and journalists may think they're already doing many of the things the research finds important, but local news consumers still question whether they can trust the local news and information regardless of what platform they're using,” Magid Executive VP Bill Hague says. “The path forward is all about taking action in a clear and demonstrative way each and every day, so you can get credit for delivering trusted, high-quality journalism."

 

COMMENTARY

OTT Is Fastest-Growing Media Segment For Local Advertising

• by Laurie Sullivan , Staff Writer @lauriesullivan, Yesterday

The local advertising marketplace will reach $167.4 billion in 2022. The fastest-growing media segment is over-the-top (OTT), with an annual growth rate of 57.4% in 2022, according to recent data from BIA Advisory Services.

Local TV’s 2022 growth is fueled partly by political spending -- about $3.8 billion of the total $8.6 billion forecast to be spent in this mid-term election cycle. 

OTT spending is forecast to exceed $2 billion -- drawing strength from multiple business verticals, including political advertising.

From 2022 to 2026, OTT will grow at a 14.3% compounded annual growth rate (CAGR) and will hold the second spot behind digital TV owned-and-operated streaming and website advertisements sold by local broadcast stations.

Working in partnership with BIA Advisory Services, Madhive -- which supports the programmatic space -- released the report to reveal the opportunities around OTT and its adoption.

It’s important to note that BIA uses the terms “OTT” and “CTV” interchangeably, despite it being a subset of OTT video impressions that come specifically from connected TVs. CTV impressions typically account for 90% or more of OTT viewing and ad buying.

For the project, BIA interviewed executives from local TV groups, agencies and technology solution providers, along with OTT platforms and aggregators.

The areas investigated include how advertisers are shifting budgets from traditional into digital, the pros and cons of programmatic and how it is defined when discussing direct vs platform buying, and programmatic workflow that would explain the importance of tools and analytics. The report also examined where brands make their programmatic media buys, wither directly from the Hulu, Roku, publisher, or programmatic partners.

BIA forecasts that from 2022 to 2026, local TV spend will fall from 51.2% to 41.7% of local video ad spending and local cable will decline from 16.2% to 12.5%.

Video display ad spend on laptops and PCs will nearly double in this period from 13.7% to 22.6% of local video spend.

Digital media spending will rise to 55% of total local ad spending by 2026 as marketers and agencies continue to find value in these channels.

From 2019 to 2022, locally targeted digital sales rose from $55.9 billion to $79.5 billion, while traditional sales declined from $92.5 billion to $87.9 billion. With the lockdown, alongside consumers using online platforms more often, 9.8% of traditional sales shifted toward digital across all TV markets.

From 2021 to 2022, BIA witnessed a slowdown with only 0.4% of traditional sales shifting toward digital, according to the data.

By 2026, BIA forecasts digital spend will grow to $116.6 billion, while traditional spend will rise to $93.6 billion, having digital sales expand by 8% from 2022 to 2026.

The five largest growing sub-verticals using OTT advertising from 2022 to 2026 will be:

Tier 1:

• Automotive Manufacturers (OEM) +$139.4 M (+30 percent CAGR), as the Automobile industry will be slowly recovering from a global disruptive chip shortage.
• Legal Services +$130.1 M (+12 percent CAGR), as the need for Legal soliciting from lawyers/attorneys will pick up again after a long lockdown. Hospitals +$90.5 M (+22 percent CAGR) another big spender on OTT as the need for regular hospital visits will also increase post pandemic.

Tier 2:

• Local Automobile Dealers Associations +$79.4 M (+21 percent CAGR).

Tier 3

• New Car Dealers +$63.6M (+16 percent CAGR)

Surviving a Downturn: 5 Things Every Salesperson Needs to Know

 Surviving a Downturn: 5 Things Every Salesperson Needs to Know

Matt Prostko

September 28, 2022

We’re in a recession.

We’re not in a recession.

The precise state of the U.S. economy is a matter of debate right now, but one thing is sure: high inflation, rising interest rates and declining GDP are making corporate leaders nervous. More than 60% of CEOs around the world expect a recession before the end of the year, according to a recent survey by the Conference Board. Sales teams are already buckling up and preparing for a bumpy ride.

Selling during a downturn is different than during good times. That’s obvious. But what those stressful conditions feel like, and how to respond, may be new to many salespeople, especially younger ones who haven’t been through it before.

Here are five things your salespeople need to know.

1. Shift in Times of Belt Tightening

Customer belt-tightening requires a different selling approach. When customers and prospects clamp down on spending, the usual salesperson toolkit – such as relationship building skills and the ability to make a compelling case for their product or service – is no longer enough. Those things still matter, but in a slowdown, it becomes even more important to acknowledge the elephant in the room: dollars and cents.

The degree of budgetary scrutiny can become intense. One large, multinational company we work with, for example, has begun requiring chief financial officer approval of any vendor contract over $100,000.

This means salespeople must now be prepared to make an airtight financial case. How can what they’re selling improve a company’s top-line revenue? How is its total cost of ownership (or TCO, the term of art for sales teams) lower than the status quo or competitors’ offerings?

If a salesperson can’t have that conversation, backed by strong supporting facts, they’re hosed. It’s a tough world out there now.

2. Position for a Downturn

Positioning a product as a solution for downturn conditions can help close a deal. In a robust economy, companies grow through headcount – they hire more and more people to execute their expanding mission. When a recession looms, they implement layoffs and hiring freezes. That has been especially true this year in the tech sector, where more than 41,000 workers have been laid off so far, according to one estimate.

A product’s ability to help the existing employee base do the same or more with less is a huge value proposition right now. Sales teams should drive this point home with customers and prospects at every opportunity.

3. Not All Spending Stops

Many companies pull back on spending, but some don’t. In every economic slowdown, many companies aggressively cut costs – call them the risk minimizers – but others don’t. That could be because they’re in a relatively recession-proof industry, like pharma or energy, or they’re gain maximizers who remain all in on moving forward.

Sales teams should carefully examine their customer and prospect lists and focus on the companies most likely to keep buying. It’s just common sense.

4. Build Customer Confidence

Sales messages must paint a path to certainty. I touched on this in the previous three points, but it bears emphasizing: Salespeople must have a good story or go home.

That would be true in any slump, but it’s especially so in this one. Conflicting signals such as a very strong labor market despite layoffs and the continuing strength of consumer spending make this feel more like a fog of uncertainty than a recession.

The conditions may be unique, but salespeople who can show how their product or service helps navigate uncertainty will always rise to the top. It’s a premium skill that truly is being put to the test now.

5. Be Ready for Mixed Signals

Mixed signals from customers are par for the course. Salespeople are often surprised to discover that responses from customers are seldom black and white during a downturn. Rather than deliver an outright rejection, a company may give different flavors of no. “Now isn’t a good time.” “We’re going to wait a bit.” That sort of thing.

To survive a slump, a salesperson needs to develop a thick skin and get used to ambiguity. As these five points show, the volatile economy has changed the game for salespeople. The good news is that, with the proper skills and outlook, it’s possible to survive and thrive.

 

In-Game Ads Forecast to Hit $17.6 Billion By 2030

• by Fern Siegel , 6 hours ago

Demand for in-game advertising is growing.

The global in-game ad market was valued at $6.8 billion million in 2021 and is forecast to hit $17.6 billion by 2030, with a CAGR of 11%. That’s according to a new report published by Allied Market Research.

The use of smartphones and other portable devices, coupled with the legions of internet fans, are driving the market. So did the pandemic. More people stayed home, which opened new opportunities for the industry.

However, the one caveat for advertisers is frequency. Too many ads annoy users, which could cause them to quit the game.

“Until the ads are seamless and accepted by gamers, we won’t see advertisers jumping fully into it,” Ashley Bolt, managing partner of gaming at Havas Entertainment, told The Drum. “There are places where ads are appropriate, like a sports game or a racing game where it is realistic and can enhance the game, but a poster ad for a fast-food restaurant in Elden Ring probably isn’t going to work.”

The in-game ad market is divided into three types: static ads, dynamic ads and advergaming. Allied Market Research. Well-known gaming companies include Alphabet Inc., Anzu Virtual Reality Ltd., Blizzard Entertainment Inc., Electronic Arts Inc. and Playwire.

Bidstack, which enables in-game ads and videogame monetization, finds sports titles especially fertile ground.

The company believes it could create a network in which brands select their desired audience via the game. For example, the demographics for games, such as Football Manager, are known: primarily 18-36-year-old men. Knowing the players makes ad targeting easier, gives advertisers the ability to measure campaign success in real time and maintains brand safety.