Presentation on theme: "Local Broadcast TV Advertising Outlook Steve Lanzano, TVB President & CEO Goldman Sachs 23 rd Annual Communacopia Conference September 11,"— Presentation transcript:
Local Broadcast TV Advertising Outlook Steve Lanzano, TVB President & CEO email@example.com Goldman Sachs 23 rd Annual Communacopia Conference September 11, 2014
Fundamentals are extremely strong Consumers credit TV as the primary media purchase influencer Advertising categories key to local TV growth are healthy Performance on all platforms are showing year-over-year gains 2014 for Local Television Advertising 2
Nielsen: More People Are Watching TV Than Ever Before 3 Monthly Hours: Minutes Watched Per Viewer 2+ Source: Nielsen Cross-Platform Report Q1 Each Year
Watching TV at Home Captures the Lion’s Share of Viewing 4 Source: Nielsen Cross-Platform Report Traditional TV 33:5986.4% Time-Shifted TV 3:419.4% Watching Video on Internet 1:313.8% Watching Video on Smartphone 0:090.4% Total A18+ Video Consumption 39:20100.0% Q1 2014: Weekly Time Spent A18+ (Hrs:Min)
A Week in the Life for the Total U.S. Population 5 Source: Nielsen Cross-Platform Report Q1 2014: Weekly Time Spent (Hrs:Min) A18-24A25-34A35-49A50-64A65+ On Traditional TV19:5523:5830:1041:0148:41 Watching Time-shifted TV1:543:374:134:173:22 Using DVD/Blu Ray Device0:571:341:181:040:39 Using a Game Console3:482:491:140:250:08 Using the Internet on a Computer5:296:127:305:592:55 Watching Video on Internet2:282:111:451:120:23 Watching Video on a Mobile Phone0:250:160:080:04-
TV Remains The #1 Influencer Across All Segments of the Purchase Funnel 6 Source: TVB/The Futures Company; “Purchase Funnel 2012”
IAB Study on Consumer Influence: Auto Intenders’ Vehicle Purchases are Influenced by All Media and Ads 7 Source: IAB Digital Influence on Auto Intenders, January 2014 Q. Which of the following media influences your CAR/TRUCK purchases?
Local TV Advertising 2014 Key Category Performance (Jan-Jun 2014) 8 Automotive Tier 1+4.7% Automotive Tier 2, 3+5.9% Retail+3.7% Hospitals/Med Centers+17.8% National Political+371.3% State/Local Political+206.6% Misc. Services/ Amusements +7.3% Medical Insurance+111.9% All Categories +3.9% Source: Kantar Media
Double Digit Growth of Station Website and Mobile Ad Revenue 9 Source: Borrell Associates, Inc. Local TV Stations’ Digital Ad Revenue grew +15% in 2013 Larger station groups are now selling digital services including Search Engine Optimization Reputation Management Website Design Ad Placement (Outside The TV Station’s Site) Email List Management Many stations have branched out beyond their “owned” media and are selling other media properties’ inventory Reseller and audience-extension programs now account for 5% of digital revenues, a percentage that’s on the rise Local TV Stations Expected to Generate $3 Billion in Digital Ad Revenue in 2014 WebsitesMobile Local+16.4%NA National+34.1%NA Total+18.2%+21.6% Digital Ad Revenue Growth (Jan-Jul 2014 vs. Jan-Jul 2013)
Strong Political Spending for National and Local Elections 10 Source: TVB, Kantar Media CMAG, Magna Global, Nielsen Q4’13 Cross-Platform Report, U.S. Census Bureau: Voter Statistics, 2008 and 2010 Local Broadcast Television gets 85% of TV ad dollars and the lion’s share of all media spending on Political Campaigns Adults 35+, who comprise the majority of voters in America (76%), spend only 3% of their monthly video consumption time with internet and mobile platforms Kantar Media CMAG and Magna Global forecast 2014 political spot spending to reach $2.4 Billion and $2.3 Billion, respectively 2014 political ad spending from Jan-July is up +259.6% versus the same period in the prior year David Axelrod, Obama Political Consultant —
Moving into the Fall Local TV Commercial Pricing is Solid 11 Source: SQAD Media Market Guide Year-Over-Year (Q3 2014 vs. Q3 2013) Quarter-Over-Quarter (Q3 2014 vs. Q2 2014) Early Morning+2.0%+4.0% Early News+4.0%+2.0% Prime Time-2.0%-1.0% Late Night+3.0% Change (%) in CPM A25-54
An Agency Perspective 12 2014 Korn Ferry Marketing Pulse Survey “connect marketing efforts to tangible business outcomes…” “while customer engagement is critical and…a key focus…the overarching purpose of… this engagement is to drive business results…” Strata Media Buying Agency Survey, Q2 2014 “55% of clients say they are most interested in Spot TV…The largest percentage in 22 Quarters of the Survey”
More people are watching TV than ever before and consumer usage remains strong Average person A2+ spending nearly 160 hours per month with television Traditional Television represents over 86% of the weekly time spent watching video Local broadcast television is the most effective video platform in influencing and driving consumer behavior Advertising category strength is deep and diversified Return of political spending cycle, solid automotive performance, and increases in healthcare and retail categories Local Spot pricing remains positive in 2H 2014 Growth of local broadcast stations’ online and mobile offerings is driving rapid advertiser adoption resulting in double digit digital advertising sales growth Broadcasters traditional television and digital media platforms offer the mass reach and targeting to advertisers Local TV stations expected to generate $3 billion in digital ad revenue in 2014 2014 Full Year Outlook 13
Local Broadcast TV Advertising Outlook Steve Lanzano, TVB President & CEO firstname.lastname@example.org Goldman Sachs 23 rd Annual Communacopia Conference September 11, 2014 Thank you!