doj looks into commercial production · was nbc nightly news with lester holt. this was the second...

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REPORTS: AGENCIES BEING PROBED The Wall Street Journal is reporting the Department of Justice (DOJ) has started an investigation to determine if advertising agencies have inappropriately been steering commercial production business to in-house units rather than independent producers by “rigging” the bidding process for projects. In at least some cases it’s speculated that agencies get independents to inflate their bids so that their in-house production and postproduction units can win the assignment. Federal antitrust law prohibits both price- fixing and bid-rigging. The WSJ says it’s not clear which agencies are the targets of the government’s inquiries but notes many of the major agency holding companies including WPP, Omnicom, Interpublic and Publicis have in-house production and postproduction operations. Nancy Hill, the CEO of trade group for the agencies, the American Association of Advertising Agencies (4A’s), released a statement saying “It goes without saying that we require our member agencies and their staffs to follow the letter of the law.” Six months ago the Association of National Advertisers (ANA) released the results of a study charging that “agencies are shortchanging clients through nontransparent business practices.” While no specific agencies were mentioned, the report cited several suspected practices including agencies getting rebates from some sellers for reaching spending thresholds, and the WSJ says that report has led to some clients to start audits of their media-buying contracts. It appears the DOJ had already been looking into bid- rigging prior to the ANA report, and Rebecca Meiklejohn, who is leading the case for the Department, then contacted the ANA and K2 Intelligence, which conducted the ANA probe. It’s reported that a discussion of production bid- rigging was included in an early draft of the ANA statement, but was dropped in the final report. The language that did not make the final report included charges that “some creative agencies” directed “postproduction projects to affiliated companies within the same agency holding companies” and that some producers and editors from independent production firms were asked to submit inflated “check bids” on projects that had already been determined were going to the in-house partner. As to why independents would comply with such requests, AICE, a trade group that represents independent postproduction companies, says its members have been coerced into submitting check bids “for fear of alienating an agency and risking future Continued on Page 3 ADVERTISER NEWS A new report from The NPD Group says that after two consecutive quarters in which restaurant traffic stalled, conditions worsened in the third quarter to produce the first actual decline in visits to quick-serve restaurants in five years. While there are several reasons, the report emphasizes pricing, saying “The fact is the cost of the average restaurant meal has risen 21% over the last decade and with lower grocery prices the price gap between eating at home and dining out is widening”…… It’s not in the fast-food category, but Bob Evans reported a 2.8% decline in transactions for its latest fiscal quarter, bringing about a 1.8% decline in same-store sales. The bright spot: breakfast sales were up slightly……Dave & Buster’s had a stellar 5.9% same-store increase in the third quarter on top of an 8.8% increase in the corresponding quarter a year ago. Bigger gains came from the amusements part of the income statement rather than from food and beverage sales……Dunkin’ Donuts signed its first national sports league partnership, becoming the official coffee, doughnut and breakfast sandwich of the National Hockey League. The sponsorship kicks off in January at the league’s annual outdoor game on 1/2/17……Alaska Air secured approval from the Department of Justice for its proposed acquisition of Virgin America, but had to agree to scale back its code-share deal with American Airlines on some routes where Virgin competed with American…… Hudson’s Bay Company, which owns Saks Fifth Avenue and Lord & Taylor in the U.S., lost money for the third straight quarter with sales at Saks and its outlet stores the biggest problems for the multi-national retailer. A drop-off in “retail tourism,” especially in the U.S., has been a continuing problem for what’s called North America’s oldest company (started in 1670 as a fur-trading company)……Conn’s has been struggling with consumer credit for several years and after tightening its policies the chain suffered a 10.1% same-store sales decrease in the fiscal quarter that ended on 10/31. The chain says that without the changes in its credit model, sales would have been close to flat. The 90- day delinquency rate rose slightly to 10.9% from 10.8% a year ago……This Week In Consumer Electronics reports the wearables market grew by 3.1% in Q3 with fitness trackers rather than watches the driving force for growth. International Data Corp. finds that launches of newer models and an expanding user base combined to produce the gains with Fitbit the market leader. Apple’s second- generation watch didn’t launch until mid-September, but the smart-watch category is still seen as being “challenged.” DOJ LOOKS INTO COMMERCIAL PRODUCTION www.spotsndots.com PDF/TXT newsletter Subscription: $325 per year Call toll free: 888-884-2630 This publication cannot be distributed beyond the office of its named subscriber. Send sales-related job listing to: [email protected] Copyright 2016. The Daily News of TV Sales Thursday, December 8, 2016

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Page 1: DOJ LOOKS INTO COMMERCIAL PRODUCTION · was NBC Nightly News with Lester Holt. This was the second straight week Nightly News picked up the number one ranking. The program delivered

www.SpotsnDots.com PAGE 1

REPORTS: AGENCIES BEING PROBED The Wall Street Journal is reporting the Department of Justice (DOJ) has started an investigation to determine if advertising agencies have inappropriately been steering commercial production business to in-house units rather than independent producers by “rigging” the bidding process for projects. In at least some cases it’s speculated that agencies get independents to inflate their bids so that their in-house production and postproduction units can win the assignment. Federal antitrust law prohibits both price-fixing and bid-rigging. The WSJ says it’s not clear which agencies are the targets of the government’s inquiries but notes many of the major agency holding companies including WPP, Omnicom, Interpublic and Publicis have in-house production and postproduction operations. Nancy Hill, the CEO of trade group for the agencies, the American Association of Advertising Agencies (4A’s), released a statement saying “It goes without saying that we require our member agencies and their staffs to follow the letter of the law.” Six months ago the Association of National Advertisers (ANA) released the results of a study charging that “agencies are shortchanging clients through nontransparent business practices.” While no specific agencies were mentioned, the report cited several suspected practices including agencies getting rebates from some sellers for reaching spending thresholds, and the WSJ says that report has led to some clients to start audits of their media-buying contracts. It appears the DOJ had already been looking into bid-rigging prior to the ANA report, and Rebecca Meiklejohn, who is leading the case for the Department, then contacted the ANA and K2 Intelligence, which conducted the ANA probe. It’s reported that a discussion of production bid-rigging was included in an early draft of the ANA statement, but was dropped in the final report. The language that did not make the final report included charges that “some creative agencies” directed “postproduction projects to affiliated companies within the same agency holding companies” and that some producers and editors from independent production firms were asked to submit inflated “check bids” on projects that had already been determined were going to the in-house partner. As to why independents would comply with such requests, AICE, a trade group that represents independent postproduction companies, says its members have been coerced into submitting check bids “for fear of alienating an agency and risking future Continued on Page 3

ADVERTISER NEWS A new report from The NPD Group says that after two consecutive quarters in which restaurant traffic stalled, conditions worsened in the third quarter to produce the first actual decline in visits to quick-serve restaurants in five years. While there are several reasons, the report emphasizes pricing, saying “The fact is the cost of the average restaurant meal has risen 21% over the last decade and with lower grocery prices the price gap between eating at home and dining out is widening”……

It’s not in the fast-food category, but Bob Evans reported a 2.8% decline in transactions for its latest fiscal quarter, bringing about a 1.8% decline in same-store sales. The bright spot: breakfast sales were up slightly……Dave & Buster’s had a stellar 5.9% same-store increase in the third quarter on top of an 8.8% increase in the corresponding quarter a year ago. Bigger gains came from the amusements part of

the income statement rather than from food and beverage sales……Dunkin’ Donuts signed its first national sports league partnership, becoming the official coffee, doughnut and breakfast sandwich of the National Hockey League. The sponsorship kicks off in January at the league’s annual outdoor game on 1/2/17……Alaska Air secured approval from the Department of Justice for its proposed acquisition of Virgin America, but had to agree to scale back its code-share deal with American Airlines on some routes where Virgin competed with American……Hudson’s Bay Company, which owns Saks Fifth Avenue and Lord & Taylor in the U.S., lost money for the third straight quarter with sales at Saks and its outlet stores the biggest problems for the multi-national retailer. A drop-off in “retail tourism,” especially in the U.S., has been a continuing problem for what’s called North America’s oldest company (started in 1670 as a fur-trading company)……Conn’s has been struggling with consumer credit for several years and after tightening its policies the chain suffered a 10.1% same-store sales decrease in the fiscal quarter that ended on 10/31. The chain says that without the changes in its credit model, sales would have been close to flat. The 90-day delinquency rate rose slightly to 10.9% from 10.8% a year ago……This Week In Consumer Electronics reports the wearables market grew by 3.1% in Q3 with fitness trackers rather than watches the driving force for growth. International Data Corp. finds that launches of newer models and an expanding user base combined to produce the gains with Fitbit the market leader. Apple’s second-generation watch didn’t launch until mid-September, but the smart-watch category is still seen as being “challenged.”

DOJ LOOKS INTO COMMERCIAL PRODUCTION

www.spotsndots.comPDF/TXT newsletter

Subscription: $325 per yearCall toll free: 888-884-2630This publication cannot be

distributed beyond the officeof its named subscriber.

Send sales-related job listingto: [email protected]

Copyright 2016.

The Daily News of TV Sales Thursday, December 8, 2016

Page 2: DOJ LOOKS INTO COMMERCIAL PRODUCTION · was NBC Nightly News with Lester Holt. This was the second straight week Nightly News picked up the number one ranking. The program delivered

PAGE 2 The Daily News of TV Sales @ www.spotsndots.com

NETWORK NEWS Cedric the Entertainer and Spike Feresten are joining with CBS to develop a new comedy. Tony Take the Wheel will star Cedric and will center around two very-different brothers. The family dynamic is challenged when one brother hires his nephew to work in his custom car shop. Feresten will write the script and serve as one of the executive producers……A special preview of The Good Fight will air on Sunday, February 19th at 8 PM (ET) on CBS. At the same time, The Good Wife spin-off off will be available on CBS All Access, the network’s OTT streaming service……Adam Bartley of Longmire has been cast in a recurring role in the NBC dramedy This is Us. Bratley will play Duke, who works at a local horse stable and offers support to Kate. Bartley is best known for his role as Sheriff’s Deputy Jim “the Ferg” Ferguson on Longmire. He also has a recurring role on NCIS: Los Angeles……ABC’s The Bachelor will return on Monday, January 2nd at 8 PM (ET), and the show has released a list of 30 potential soul mates for the season premiere. Bachelor Nick Viall will narrow the list to 22 lucky women that will compete for his heart as the season progresses……America Olivo is set to reprise her role as Laura Dawson, ex-wife of Jon Seda’s character on Chicago Fire later this season. Laura appeared in six episodes of the show’s spin-off Chicago P.D. when she and Antonio were still married. Chicago Fire returns on Tuesday, January 3rd at 9 PM (ET) on NBC……The winner in the evening news race for the week of November 28th was NBC Nightly News with Lester Holt. This was the second straight week Nightly News picked up the number one ranking. The program delivered its best demo audience since Election Week and its largest margin of victory in the 25-54 demo. Nightly News did see a five-point decline in total viewers and a three percent decline in the demos from the comparable week last year. ABC World News Tonight with David Muir finished second in key demos and maintained its lead in total audience. World News Tonight was the only evening newscast to grow from the same week last year. The program was up two percent in total viewers, but continues to lose traction in the 25-54 demo. Third place CBS Evening News with Scott Pelley was down four percent in the demo and down seven percent in total viewers when compared to last year……Last night’s live TV event musical on NBC, Hairspray Live!, had a surprise for viewers—some of the commercials were live as well. Ad Age reported that both Oreo and Toyota would have live spots designed to harken back to the 1960s era of the show. Derek Hough was set to stay on screen in character and “pay homage to Oreo cookies in the style of ads of the ‘60s era. (This is a big deal for NBC, and network TV in general, because Oreo owner Mondelēz has become such a big advocate of online video advertising.) Toyota was to feature the 2017 Corolla in a live commercial that is reminiscent of a 1960s-era car ad, sitting alongside a vintage model that celebrates Corolla’s 50th anniversary. Reddi-wip was also running a spot that featured a musical number choreographed by the Hairspray Live! team, including crew and cast members.

AVAILS WAFF 48 News, Huntsville, AL has an exciting opportunity to work in a fast-paced fun environment as a Senior Digital Sales Specialist. This person will work with the sales staff to help develop digital revenue and will meet with local businesses to consult with them on the best digital advertising solutions for their business. Candidates must have at least 2 years of proven Digital sales experience. If qualified, please apply online at https://careers-raycommedia.icims.com and attach your cover letter and resume. No phone calls please. EOE-M/F/D/V

Winter is just around the corner! If you would prefer to be selling where summer never ends, WPBF 25, the Hearst owned ABC Affiliate in sunny West Palm Beach has an opportunity for you! WPBF 25 seeks a sales superstar to join our team. The ideal candidate must have broadcast TV sales experience and possess the drive and ability to thrive on multiple platforms in a fast paced, highly competitive market. Your passion for

developing new business will be encouraged and rewarded! CLICK HERE to apply. EOE Tribune Media, the nation’s largest independent broadcast station group, seeks a Sales Research Marketing Manager for its Philadelphia (WPHL-TV) and Washington D.C (WDCW-TV) stations. This position is responsible for creating and designing research pieces supporting the station’s sales and marketing efforts, and much more. Minimum of 4 years in marketing, research, and communications or design role. Media research experience and knowledge of Nielsen, Kantar, ComScore, MediaCenter, and Wide Orbit preferred. Demonstrated proofreading and copy editing experience required. CLICK HERE for more details or to apply now. EOE

TUESDAY RATINGS

12/8/2016

On Saturday, the hearse carrying Fidel Castro’s

remains broke down and had to be pushed. The hearse

was being driven by Cuba’s minister of metaphors.

Conan O'Brien

Page 3: DOJ LOOKS INTO COMMERCIAL PRODUCTION · was NBC Nightly News with Lester Holt. This was the second straight week Nightly News picked up the number one ranking. The program delivered

The Daily News of TV Sales @ www.spotsndots.com PAGE 3

‘TIS THE SEASON FOR CHOCOLATE Retailers see the candy department as a key profit zone. Holidays in particular are a key window of opportunity for candy brands and retailers alike. According to a new report by Packaged Facts, seasonal products create the opportunity for incremental business if the product is well-marketed and supported at retail. It’s clear that there is thriving consumer demand for seasonal candy products. 39% of U.S. adults purchased chocolate candy from seasonal sections in stores last year. That’s up from only 27% in 2014, according to the research firm’s 11th edition of the report Chocolate Candy Market in the U.S. “It can be a challenge for candy marketers to advertise support between new product launches and existing brands, as well as addressing the seasonality in certain candy products,” says David Sprinkle, research director, Packaged Facts. But successful brands understand the need to support seasonal products during key holidays and gift-giving occasions. “As with fashion, confectionery cycles go through different fads and trends. After a product or flavor profile has its time in the spotlight, the consumer will move on to the next big thing,” says Sprinkle. Candy marketers have to be marketing toward the trend, but to really strike gold they also be able to get ahead of the trend. Packaged Facts sees Winter/Christmas themed candy as a seasonal segment with growth potential. Seasonal chocolate candy sales during Winter/Christmas were up 3% last year. “Even with the popularity of cookies, cakes, and other sweet baked treats traditionally associated with Christmas, there are opportunities to grow Christmas candy sales and not just through the inclusion of yuletide yummies in food gifts given as presents,” says Sprinkle. The growth of premium chocolate is also playing out in the seasonal market. Some consumers are trading up to premium chocolate for certain gift-giving holidays, especially Easter and Christmas.

FCC UNDER FIRE FROM HOUSE Bipartisan legislation has been introduced by powerful members of both parties on the House Energy & Commerce Committee. Incoming chair Greg Walden (R-OR) and Rep. John Yarmuth (D-KY)—who will be ranking Democrat on the Budget Committee—co-sponsored a bill to force the FCC to scrap the rule barring broadcast-newspaper crossownership in a market. “Striking this crossownership ban would save journalism jobs, create more investigative reporting and provide communities with greater local news,” declared NAB CEO Gordon Smith in applauding the move.

THIS AND THAT The Manheim Used Vehicle Value Index shows that wholesale used vehicle prices fell 1% in November. The decline is blamed primarily on the new vehicle market—“channel stuffing and higher incentives”......The Consumer Financial Protection Bureau has fined three reverse mortgage firms a total of $790,000, accusing the three of deceptive advertising.

AVAILS ABC 7/WJLA-TV in Washington DC has openings for Account Executives. The ability to uncover new business sales opportunities while juggling multiple projects is required, as is two years outside sales experience. The right candidate has the drive and the passion to be top biller. Experience selling across multiple media platforms, including broadcast television, digital television and the internet is a plus. We’ll provide all the tools you need to grow your career and your income. CLICK HERE for more info or to apply now. EOE.

Raleigh, NC: Account Executive needed for sales of WRAL-TV, WRAL.COM, and digital channels. An in-depth knowledge of basic marketing concepts as well as familiarity with advertising on electronic media including the internet is necessary. Must have the ability to sell specials, promotions, and generate non-traditional revenue. 3-5 years of television and on-line sales experience required. CLICK HERE for more details or to apply now. EOE M/F. All Capitol

Broadcasting Company properties are tobacco free. Capitol Broadcasting Company participates in E-Verify. KFVS-TV in Cape Girardeau, MO has an immediate opening for a Local Sales Manager. College degree and experience in coaching and training AEs preferred. We want a manager who is team oriented and can work toward budget achievement for multiple platforms. Must be organized, have exceptional time management skills, a minimum of five years of television advertising sales, and be proficient in selling and managing digital platforms. Experience with Matrix, One Domain, and Wide Orbit is a plus. CLICK HERE and attach your resume when applying. EOE M/F/D/V. Fox4/WFTX-TV in sunny Ft Myers, FL seeks a high-energy, multi-tasking Account Executive to join our sales team. The successful candidate will be a broadcast experienced aggressive, break-out salesperson who will

manage an important list of accounts and develop new and online business for the station. Candidates must have the ability to prepare and present

marketing proposals utilizing quantitative and qualitative metrics. Please call Local Sales Manager Don Wargo at 239-829-1118 to learn more or CLICK HERE to apply. Equal Opportunity Employer.

MORE AVAILS ONLINE @ SPOTSNDOTS.COMPlace a classified, email: [email protected]

DOJ LOOKS INTO COMMERCIAL PRODUCTIONContinued from Page 1opportunities for work.” Advertising Age reports ANA CEO Bob Liodice finds the DOJ investigation to be “very disturbing” and noting it comes just six months after the ANA reports, adds “This new development raises even more concern about trust between advertisers and their agencies.”

12/8/2016

A man was arrested after police discovered $330,000 worth of marijuana in his

car wrapped like Christmas presents. Police got

suspicious because NO MAN does his Christmas shopping that early. Jimmy Fallon