pharma is the 7th largest ad category in u.s. · aprana brielle, jacob mccarthy and nick peine will...

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www.spotsndots.com Subscriptions: $350 per year. This publication cannot be distributed beyond the office of the actual subscriber. Need us? 888-884-2630 or [email protected] Copyright 2017. The Daily News of TV Sales Wednesday, May 10, 2017 PHARMA IS THE 7TH LARGEST AD CATEGORY IN U.S. WILL THE CATEGORY CONTINUE TO GROW? The number of prescription drug brands spending $100 million or more annually on advertising has more than doubled over the past five year, according to Kantar Media. The category generated $6.4 billion last year, a growth of over 60% since 2012. In fact, Kantar Media reports the number of brands spending at least $50 million annually, as well as the number of brands spending over $100 million, have both more than doubled since 2012. How much went to TV? Kantar didn’t break down cable verses broadcast, or national verses spot, but almost two-thirds of the total was spent on TV advertising; $4.1 billion of the $6.4 billion total. The remainder was spent on ads in magazines, newspapers, outdoor and radio. Despite their big ad budgets, some of these drugs are targeted at very narrow consumer groups. For example, when Opdivo was launched in 2014 its FDA approval was for a lung cancer condition with a patient population of fewer than 200,000 people. Yet the sales revenue potential for the drug, aided by a six-figure price per patient, justified an estimated $93 million of ad spending during its first year. Can the ad spending growth be maintained? Kantar Media says a diverse pipeline of new prescription drugs coming onto the market has a cascading impact on the direct to consumer (DTC) advertising expenditures. Incremental spending is generated from new product launches which in turn can prompt competitors to raise their investments in defense of market share. More competition also provides an impetus for brands to sustain these higher spending levels over time. But the pace of marketing launches is difficult to forecast. It takes several years for a drug company to complete the cycle of research, development, clinical trials and FDA approval. And, changes in the insurance marketplace might affect consumer demand and the use of some medications. Take a look at the top 10 prescription drug brands ranked by 2016 ad investments. Eight had double-digit growth rates year-over-year and all of them spent over $100 million. Humira ($439M), Lyrica ($392M), Eliquis ($296M), Xeljanz ($258M), Opdivo ($168M), Viagra ($156M), Cialis ($150M), Chantix ($151M), Trulicity ($142M), and Prevnar ($128M). Only two of the top 10 pharma advertisers spent less on advertising in 2016 than the year before. Cialis spending dropped 34%, and Prevnar reduced ad dollars by 7%. See the full report at Kantar Media. ADVERTISER NEWS We’ve seen lots of store closings lately, but generally the supermarket sector has not been involved, despite soft numbers that have been partially brought about by food deflation. Now however Southeastern Grocers says it will close 20 stores as part of a customary portfolio review. In some cases closings were caused by lease expirations or renovations of nearby stores. All three of Southeastern’s major banners, Winn- Dixie. Harveys, and Bi-Lo, will lose some stores……Ingles Markets’ second quarter comp sales were down just 0.3%, but corporate profit tumbled by 36.1%. The company blames increased personnel costs and higher interest expenses for the decline in the bottom line…Nissan, which has made some significant share gains recently, will try to keep the momentum building by realigning sales management into eight geographic regions with the goal of each region being able to decide what models to emphasize and how much to spend on advertising in each market. Nissan is up 2.8% in sales for the year’s first four months while the overall automotive market is down 2.4%......Target will test next- day delivery of online orders in home market Minneapolis starting this summer, but only for customers who have a Target REDcard. Orders placed by 1:30 will be delivered to customers’ homes the next day……Fazoli’s says it set a franchise sales record in the fiscal year that ended on 3/31, with plans to add locations set with 13 different franchise groups. Currently at 220 restaurants in 25 states, Fazoli’s finished the year with its sixteenth straight quarter of same-store sales increases……Unites States Beef Corporation, already Arby’s largest franchisee, is buying ten more units in the Northwest, while continuing with its earlier deal to build 70 more Arby’s in the next five years……Bloomberg has reported Apollo Global Management is in talks to sell CEC Entertainment, the parent of Chuck E. Cheese and Peter Piper Pizza. CEC has 559 company-owned locations and 188 franchised units in 47 states……(Continued on page 3)

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Page 1: PHARMA IS THE 7TH LARGEST AD CATEGORY IN U.S. · Aprana Brielle, Jacob McCarthy and Nick Peine will co-star in the series. The pilot featured SNL’s Vanessa Bayer as a guest star

www.spotsndots.comSubscriptions: $350 per year.

This publication cannot bedistributed beyond the office

of the actual subscriber. Need us? 888-884-2630 or

[email protected] Copyright 2017.The Daily News of TV Sales Wednesday, May 10, 2017

PHARMA IS THE 7TH LARGEST AD CATEGORY IN U.S.WILL THE CATEGORY CONTINUE TO GROW? The number of prescription drug brands spending $100 million or more annually on advertising has more than doubled over the past five year, according to Kantar Media. The category generated $6.4 billion last year, a growth of over 60% since 2012. In fact, Kantar Media reports the number of brands spending at least $50 million annually, as well as the number of brands spending over $100 million, have both more than doubled since 2012. How much went to TV? Kantar didn’t break down cable verses broadcast, or national verses spot, but almost two-thirds of the total was spent on TV advertising; $4.1 billion of the $6.4 billion total. The remainder was spent on ads in magazines, newspapers, outdoor and radio. Despite their big ad budgets, some of these drugs are targeted at very narrow consumer groups. For example, when Opdivo was launched in 2014 its FDA approval was for a lung cancer condition with a patient population of fewer than 200,000 people. Yet the sales revenue potential for the drug, aided by a six-figure price per patient, justified an estimated $93 million of ad spending during its first year. Can the ad spending growth be maintained? Kantar Media says a diverse pipeline of new prescription drugs coming onto the market has a cascading impact on the direct to consumer (DTC) advertising expenditures. Incremental spending is generated from new product launches which in turn can prompt competitors to raise their investments in defense of market share. More competition also provides an impetus for brands to sustain these higher spending levels over time. But the pace of marketing launches is difficult to forecast. It takes several years for a drug company to complete the cycle of research, development, clinical trials and FDA approval. And, changes in the insurance marketplace might affect consumer demand and the use of some medications. Take a look at the top 10 prescription drug brands ranked by 2016 ad investments. Eight had double-digit growth rates year-over-year and all of them spent over $100 million. Humira ($439M), Lyrica ($392M), Eliquis ($296M), Xeljanz ($258M), Opdivo ($168M), Viagra ($156M), Cialis ($150M), Chantix ($151M), Trulicity ($142M), and Prevnar ($128M). Only two of the top 10 pharma advertisers spent less on advertising in 2016 than the year before. Cialis spending dropped 34%, and Prevnar reduced ad dollars by 7%. See the full report at Kantar Media.

ADVERTISER NEWS We’ve seen lots of store closings lately, but generally the supermarket sector has not been involved, despite soft numbers that have been partially brought about by food deflation. Now however Southeastern Grocers says it will close 20 stores as part of a customary portfolio review. In some cases closings were caused by lease expirations or renovations of nearby stores. All three of

Southeastern’s major banners, Winn-Dixie. Harveys, and Bi-Lo, will lose some stores……Ingles Markets’ second quarter comp sales were down just 0.3%, but corporate profit tumbled by 36.1%. The company blames increased personnel costs and higher interest expenses for the decline in the bottom line…Nissan, which has made some significant share gains recently, will try to keep the momentum

building by realigning sales management into eight geographic regions with the goal of each region being able to decide what models to emphasize and how much to spend on advertising in each market. Nissan is up 2.8% in sales for the year’s first four months while the overall automotive market is down 2.4%......Target will test next-day delivery of online orders in home market Minneapolis starting this summer, but only for customers who have a Target REDcard. Orders placed by 1:30 will be delivered to customers’ homes the next day……Fazoli’s says it set a franchise sales record in the fiscal year that ended on 3/31, with plans to add locations set with 13 different franchise groups. Currently at 220 restaurants in 25 states, Fazoli’s finished the year with its sixteenth straight quarter of same-store sales increases……Unites States Beef Corporation, already Arby’s largest franchisee, is buying ten more units in the Northwest, while continuing with its earlier deal to build 70 more Arby’s in the next five years……Bloomberg has reported Apollo Global Management is in talks to sell CEC Entertainment, the parent of Chuck E. Cheese and Peter Piper Pizza. CEC has 559 company-owned locations and 188 franchised units in 47 states……(Continued on page 3)

Page 2: PHARMA IS THE 7TH LARGEST AD CATEGORY IN U.S. · Aprana Brielle, Jacob McCarthy and Nick Peine will co-star in the series. The pilot featured SNL’s Vanessa Bayer as a guest star

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

NETWORK NEWS NBC is moving forward with a new comedy pilot from Saturday Night Live writer Mike O’Brien, SNL’s Lorne Michael’s and former Saturday Night Live cast member Seth Meyers. A.P. Bio got a series order following last week’s series orders for Rise and For God and Country. All three projects come from sister studio Universal TV. A.P. Bio stars Glenn Howerton (It’s Always Sunny in Philadelphia) as a philosophy scholar that loses out on his dream job and goes to work as a high school Advanced Placement biology teacher. Once he realizes he has a room full of honor roll students at his disposal, he decides to use the kids for his own benefit. Patton Oswald, Lyric Lewis, Mary Sohn, Aprana Brielle, Jacob McCarthy and Nick Peine will co-star in the series. The pilot featured SNL’s Vanessa Bayer as a guest star……CBS is joining the CW and Fox in announcing cancellations this week. BrainDead and American Gothic will not be returning to the CBS summer schedule. That leaves Zoo as the only existing summer scripted series set to return. The CW has not renewed freshmen series Frequency and No Tomorrow. Both programs got off to a slow start and neither picked up a back order. This marks the first time in the eleven-year history of the CW that no new fall show received a full order. Meanwhile, Fox has decided not to renew Rosewood after two seasons. Show stars Morris Chestnut and Jamie Lee Ortiz made the announcement on their social media accounts in a pair of lengthy post praising the show’s cast and crew……ABC and dick clark productions announced that seven-time Billboard Music Award-winning artist Cèline Dion will perform her hit My Heart Will Go On at the 2017 Billboard Music Awards. This year marks the 20th anniversary of the ballad which became the anthem of Titanic, one of the top grossing films of all time. The film’s soundtrack hit number one on the Billboard 200 chart and was named Soundtrack Album of the Year at the 1998 Billboard Music Awards. The 2017 Billboard Music Awards will air live on ABC from T-Mobile Arena in Las Vegas on Sunday, May 21st……NBC hopes to convince Madison Avenue to dig a little deeper in their pockets for their Super Bowl LII commercials. With the network’s broadcast of the game just 10 months away, NBC is suggesting to advertisers that the network will work with them to make glitzy ads work in both the February 4th broadcast as well as the network’s telecast of the Winter Olympics, which is slated to start just 4 days later. SINCLAIR/TRIBUNE BENEFITS Now that Sinclair has struck a deal to buy Tribune Media, the Wall Street Journal is touting the benefits of the combo. Besides the leverage to charge higher carriage fees, the combined company would be well positioned to sell more ads via “addressable” TV -- in which ads are targeted to households with certain characteristics. If/when that becomes a reality for broadcast TV, Sinclair would have more scale in major markets like New York, Los Angeles and Chicago, where advertisers will be able to buy more targeted local ad inventory on Sinclair-owned channels.

AVAILS FOX Carolina, WHNS-TV in Greenville, SC (Market #37) is searching for a Director of Sales. Greenville SC is a thriving city with a vibrant and growing downtown that recently hosted its first NCAA basketball tournament. Fox Carolina has a strong local news presence, strong NFL numbers, quality programming and a commitment to the community. Bachelor’s degree In Marketing or related field, or equivalent training and/or experience. Six to eight years local television sales required. CLICK HERE for more information or to apply now. EOE.

WMBF-TV, the NBC affiliate in sunny Myrtle Beach, SC, is currently recruiting for a Local Sales Manager to join our team. We’re searching for a dynamic candidate with strong leadership, motivational and sales skills and a proven track record of success. Exceptional skills in recruiting, coaching, and training top performing sellers is a must. Must be a critical thinker with a desire to lead a first-class sales team with creative ideas. CLICK

HERE for more info or to apply. No calls! EOE-M/F/D/V Digital Account Executive: KELO in Sioux Falls, SD seeks a new business ALL STAR to build long term relationships with new and existing clients as a trusted digital consultant. Cultivate current and prospective client relationships while identifying opportunities to expand these relationships by responding to client needs. Digital sales or sales related experience preferred, knowledge of Nielsen ratings is a plus. Full benefits package and unlimited income potential! Qualified applicants can APPLY HERE. EOE/M/F/V/D - Background check required. WTAE-TV, the Hearst-owned ABC affiliate in Pittsburgh, PA has an immediate opportunity for a General Sales Manager. The GSM directs sales department strategy, pricing, and personnel for all platforms. The successful candidate will have all the requisite sales and management aptitude including strong leadership skills. CLICK HERE to apply. EOE. Sinclair Broadcast Group’s San Antonio television stations (KABB/KMYS/WOAI) are looking for an enthusiastic, and driven New Business Development

Sales Manager. We’re looking for someone to lead our local sales department in maximizing all sales opportunities, with an emphasis on new business development and digital

sales. Candidates must have at least 5 years broadcast sales experience, with televisions sales and management experience preferred, and at least 5 years’ digital sales experience. CLICK HERE for more info or to apply today. Equal Opportunity Employer and a Drug Free Workplace!

How much to place a job ad in Spots n Dots?CLICK HERE to find out.

5/10/2017

Jimmy Fallon

I read that Facebook is shutting down its virtual

reality film studio. People were like, “If I wanted to see my Facebook friends in 3D,

I’d actually hang out with them.”

Page 3: PHARMA IS THE 7TH LARGEST AD CATEGORY IN U.S. · Aprana Brielle, Jacob McCarthy and Nick Peine will co-star in the series. The pilot featured SNL’s Vanessa Bayer as a guest star

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

POLITICAL ADS MAY COME QUICKLY The national debate over health care may result in heavy political advertising, at least in some districts, well before next year’s mid-term elections. The Wall Street Journal reports groups on both sides of the issue are being prompted to action after last week’s House vote to repeal the Affordable Care Act, and Democrats see a potential to use the issue in some political swing districts. 23 House Republicans represent districts that went for Hillary Clinton in the presidential vote last November and those districts could be targeted. (14 of those representatives voted for the repeal bill last week, while nine voted against it). There also will be money spent in some districts supporting representatives who voted for the repeal legislation. The American Action Network for one is spending $2 million in ten days “to help sell the legislation to the American people” according to its Executive Director. DEALERS’ NET SLIPS The average automobile dealership showed a net profit of $332,740 in the first quarter accord-ing to data from the National Automobile Dealers Asso-ciation, but that profit was down 8.5% from last year’s first quarter when dealers recorded a $352,601 net. Net was 19.3% of gross this year, down from 21.4% last year as expenses were up 6.1%. Total sales from all departments were up 2.7%. “Mass-market” dealerships took a harder hit than stores that sell luxury brands. Mass-market deal-ers saw their nets fall by 11.1% year-to-year while luxury brand dealers fell by a much more moderate 2.2%. REMEMBER ‘BUD’, ‘WEIS’ and ‘ER’? Great television advertising can last a long time, and one of the best-loved creative concepts of the 1990s is coming back, at least in England. The Budweiser Frogs (their names were “Bud,” “Weis,” and “Er”) are being used for the launch of Bud Light in the United Kingdom in commercials done by Mcgarrybowen’s London office. The original usage of the frogs came from D’Arcy Masius Benton & Bowles and debuted in the 1995 Super Bowl with Goodby Silverstein & Partners expanding on the concept once it had taken over the account. Could the frogs come back to the U.S.? No definite answer but Bud Light’s marketing manager said, “More than 20 years on from its original release, we still receive comments from people who remember the frogs and ask us if we are bringing them back.” NIELSEN ADDS SOCIAL CONTENT RATINGS Nielsen has announced the launch of enhanced capabilities within Social Content Ratings to support the analysis of owned and organic activity within the total social TV conversation. It says these advanced analytics help to inform network media strategies by measuring the engagement with content posted by owned accounts associated with a program or network in addition to organic accounts from the general viewing audience. The new capability will include Twitter data at launch with plans to incorporate Facebook and Instagram measurement later.

AVAILS Cox Media Group, Seattle WA, seeks a Digital Sales Manager. The DSM’s responsibility is to identify and drive digital strategies in order to attain revenue and share goals through development of overall direction, product and service launches and training. Our digital assets include across all screens, kirotv.com, seattleinsider.com, Live Streaming, SEO, SEM, and Social Media. 3+ years of sales management experience, strong problem solving and communication skills, and a Bachelor’s degree from

four-year College preferred. CLICK HERE for more info or to apply now. EOE. ADVERTISER NEWS (Continued from page 1) ……Rent-A-Center had a tough first quarter with same-store sales off by 12.5% in domestic core stores. But as with competitor Aaron’s, the sibling finance operation did better, with a same-store increase of 2.9% for the lease-to-own Acceptance Now unit……

Office Depot comp store sales were down 5% versus last year’s first quarter and total sales fell from $1.506 billion to $1.358 billion. But after selling off some foreign operations profitability rose from a net profit of $46 million to $116 million, and the company says the priority now is to execute on strategic initiatives to grow North American business.

SOCIAL VIDEO AD SPENDING LEVELS OFF IN Q1 According to a forecast examining social video’s share of ad spending among advertisers worldwide, investment in the format appears to have hit a plateau. While social video ad spending share saw continuous increases between Q1 and Q4 of 2016, online advertising firm Kenshoo noted there was a slight decline in social video ad spending during Q1 this year. eMarketer notes, however, this doesn’t seem likely to be cause for concern. It’s probably just a temporary ‘fork’ on the road to further growth.

5/10/2017

FunnyTweeter.com

If television has taught me anything, it’s that I can totally outrun an explosion.

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