Local Broadcast TV Advertising Outlook
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Local Broadcast TV Advertising Outlook Steve Lanzano, TVB President & CEO [email protected] Goldman Sachs 23 rd Annual Communacopia Conference September 11, 2014. 2014 for Local Television Advertising. Fundamentals are extremely strong

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Local Broadcast TV Advertising Outlook

Steve Lanzano, TVB President & CEO

[email protected]

Goldman Sachs 23rd Annual Communacopia Conference

September 11, 2014


2014 for Local Television Advertising

  • 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

2


Nielsen: More People Are Watching TV Than Ever Before

Monthly Hours: Minutes Watched Per Viewer 2+

3

Source: Nielsen Cross-Platform Report Q1 Each Year


Watching TV at Home Captures the Lion’s Share of Viewing

Q1 2014: Weekly Time Spent A18+ (Hrs:Min)

4

Source: Nielsen Cross-Platform Report


A Week in the Life for the Total U.S. Population

Q1 2014: Weekly Time Spent (Hrs:Min)

5

Source: Nielsen Cross-Platform Report


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

Q. Which of the following media influences your CAR/TRUCK purchases?

7

Source: IAB Digital Influence on Auto Intenders, January 2014


Local TV Advertising 2014 Key Category Performance (Jan-Jun 2014)

All Categories +3.9%

8

Source: Kantar Media


Double Digit Growth of Station Website and Mobile Ad Revenue

Digital Ad Revenue Growth

(Jan-Jul 2014 vs. Jan-Jul 2013)

  • 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

9

Source: BorrellAssociates, Inc.


Strong Political Spending for National and Local Elections

  • 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

Broadcast is the

nuclear bomb.

David Axelrod, Obama Political Consultant —

10

Source: TVB, Kantar Media CMAG, Magna Global, Nielsen Q4’13 Cross-Platform Report, U.S. Census Bureau: Voter Statistics, 2008 and 2010


Moving into the Fall Local TV Commercial Pricing is Solid

Change (%) in CPM A25-54

11

Source: SQAD Media Market Guide


An Agency Perspective

  • 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”

12


2014 Full Year Outlook

  • 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

13


Thank you!

Local Broadcast TV Advertising Outlook

Steve Lanzano, TVB President & CEO

[email protected]

Goldman Sachs 23rd Annual Communacopia Conference

September 11, 2014


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