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 steve tvb

Local Broadcast TV Advertising Outlook

Steve Lanzano, TVB President & CEO

[email protected]

Goldman Sachs 23rd Annual Communacopia Conference

September 11, 2014


Local broadcast tv advertising outlook steve lanzano tvb president ceo steve tvb

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


Local broadcast tv advertising outlook steve lanzano tvb president ceo steve tvb

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


Local broadcast tv advertising outlook steve lanzano tvb president ceo steve tvb

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


Local broadcast tv advertising outlook steve lanzano tvb president ceo steve tvb

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

Q1 2014: Weekly Time Spent (Hrs:Min)

5

Source: Nielsen Cross-Platform Report


Local broadcast tv advertising outlook steve lanzano tvb president ceo steve tvb

TV Remains The #1 Influencer Across All Segments of the Purchase Funnel

6

Source: TVB/The Futures Company; “Purchase Funnel 2012”


Local broadcast tv advertising outlook steve lanzano tvb president ceo steve tvb

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 broadcast tv advertising outlook steve lanzano tvb president ceo steve tvb

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

All Categories +3.9%

8

Source: Kantar Media


Local broadcast tv advertising outlook steve lanzano tvb president ceo steve tvb

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.


Local broadcast tv advertising outlook steve lanzano tvb president ceo steve tvb

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


Local broadcast tv advertising outlook steve lanzano tvb president ceo steve tvb

Moving into the Fall Local TV Commercial Pricing is Solid

Change (%) in CPM A25-54

11

Source: SQAD Media Market Guide


Local broadcast tv advertising outlook steve lanzano tvb president ceo steve tvb

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


Local broadcast tv advertising outlook steve lanzano tvb president ceo steve tvb

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


Local broadcast tv advertising outlook steve lanzano tvb president ceo steve tvb

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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