neuroscience helps nielsen lift television’s … · 2018-06-13 · according to usa today, the...

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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 2018. The Daily News of TV Sales Wednesday, June 13, 2018 NEUROSCIENCE HELPS NIELSEN LIFT TELEVISION’S ROI ADVERTISER NEWS Shares of RH, formerly known as Restoration Hardware, skyrocketed yesterday on signs its shift to luxury is finding success. Investors cheered the home goods retailer’s strong first-quarter earnings, which topped analyst estimates. RH also raised its full-year forecast. RH recently shifted its brand to the higher end of the home furnishings marketplace. It’s also focused on a membership model, as well as making changes to its supply chain… It was also a good day for Urban Outfitters. Reuters says its shares moved higher after at least four brokerages raised their price targets following an upbeat quarterly same-store sales forecast. The owner of Anthropologie and Free People clothing chains said same-store sales so far in the second quarter had climbed to the mid-teens percentage range… Sears is expanding its Auto Center partnership with Amazon to more stores across the U.S. The department-store chain has been using its Auto Centers to help install car tires, including its own DieHard, ordered on Amazon.com. The service, now available at 118 locations, allows customers to have their tires shipped to a Sears location then installed for a small fee… The Wall Street Journal says Home Depot is planning a $1.2 billion supply-chain overhaul. The retailer will add distribution sites and shipping hubs so it can deliver to 90 percent of the U.S. population in a day or less. Home Depot says digital orders make up less than 7 percent of overall sales, but e-commerce revenue is growing much faster than sales at brick-and-mortar locations. The new sites will include dozens of direct fulfillment centers for next- day or same-day delivery of commonly ordered products. Another 100 local hubs will ship bulky items like patio furniture and appliances… It’s nearing last call for Toys R Us stores. They’re entering their final days with new liquidation markdowns. According to USA Today, the iconic toy retailer just announced a new round of markdowns, with discounts now ranging from 50 to 70 percent. Three months ago Toys R Us said it would liquidate all its U.S. stores. Unfortunately for bargain-hunters, the report says, some of the most valued, in-demand merchandise was snapped up weeks ago… IHOP’s recent “name change” has drawn some Twitter ridicule at the hands of Burger King, Wendy’s and others. USA Today says International House of Pancakes—which says it’s temporarily changing its name to IHOb to promote a new line of burgers— was targeted by Burger King, which changed its logo on Twitter and Facebook to Pancake King. Wendy’s, which has in the past expressed itself quite directly on Twitter, employed a bit of snark: “Remember when you were like 7 and thought changing your name to Thunder BearSword would be super cool? Like that, but our cheeseburgers are still better.” Whataburger, Checkers, Rally’s and Chili’s Grill & Bar also joined in. MAY GIVE 15-SECOND ADS MORE ATTENTION Just as some networks look to trim ad loads, Nielsen is out this week with new research suggesting shorter-length television spots may deliver better ROI for marketers. It’s based on what’s known as neuroscience, which relies on a moment-by-moment analysis of how consumers react when they watch a spot. In this case, the research focused on 80 different ad campaigns where both a traditional 30-second ad and a shorter 15-second ad were shown to viewers. Nielsen’s team then measured study participants on a variety of metrics, including intent to buy the product, emotion, recall and overall attention to the commercial. Nielsen’s chief neuroscientist, Dr. Carl Marci, told Mediapost that the shorter ads did better on every metric except for holding viewer attention. But in every case the 15-second spots scored better on ROI than commercials twice as long. He’ll present the research at this week’s Advertising Research Foundation conference. Nielsen is already working with marketers to take 30-second commercials and use its proprietary neuro- compression technique to speed through all but the most engaging portions of the spot. Testing each of those ads currently costs $15,000 to $20,000 per ad—but Nielsen ultimately plans to sell the service to advertisers. For television sales representatives, the technology could also have an impact as it pushes some clients toward shorter-length—and less expensive—spots than they’ve typically bought in the past. But that may still be down the road. While Marci told Mediapost that 15-second ads appear to be the “sweet spot” for TV, his team is still working with ad agencies on how to fine-tune the compression algorithms and post-editing process. He thinks those efforts improve the effectiveness of compressed spots by 10 percent to 20 percent. Nielsen has been using neuroscience ad compression to help marketers make the leap from 30- to 15-second spots for several years. In a 2015 post, the company explained that electroencephalography (EEG) measurements can track the exact moments an ad activates memory, draws attention or prompts emotional response, and can also determine on an instant-by-instant basis which parts are and aren’t effective in engaging viewers. After the elements that trigger the most neurological responses are identified—typically comprising 10 to 14 seconds of a 30-second ad—the agency creatives rework the spot for story flow, continuity and visual seamlessness. That means only the most vital elements are included, which should deliver the biggest impact for the least amount of money. Based on Nielsen’s analysis three years ago, roughly 90 percent of neuroscience-optimized 15-second ads tested just as well as their 30-second counterparts. And some did even better.

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Page 1: NEUROSCIENCE HELPS NIELSEN LIFT TELEVISION’S … · 2018-06-13 · According to USA Today, the iconic ... Got Talent and dabbled in politics in Missouri, has died. According to

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 2018.The Daily News of TV Sales Wednesday, June 13, 2018

NEUROSCIENCE HELPS NIELSEN LIFT TELEVISION’S ROIADVERTISER NEWS Shares of RH, formerly known as Restoration Hardware, skyrocketed yesterday on signs its shift to luxury is finding success. Investors cheered the home goods retailer’s strong first-quarter earnings, which topped analyst estimates. RH also raised its full-year forecast. RH recently shifted its brand to the higher end of the home furnishings marketplace. It’s also focused on a membership model, as well as making changes to its supply chain… It was also a good day for Urban Outfitters. Reuters says its

shares moved higher after at least four brokerages raised their price targets following an upbeat quarterly same-store sales forecast. The owner of Anthropologie and Free People clothing chains said same-store sales so far in the second quarter had climbed

to the mid-teens percentage range… Sears is expanding its Auto Center partnership with Amazon to more stores across the U.S. The department-store chain has been using its Auto Centers to help install car tires, including its own DieHard, ordered on Amazon.com. The service, now available at 118 locations, allows customers to have their tires shipped to a Sears location then installed for a small fee… The Wall Street Journal says Home Depot is planning a $1.2 billion supply-chain overhaul. The retailer will add distribution sites and shipping hubs so it can deliver to 90 percent of the U.S. population in a day or less. Home Depot says digital orders make up less than 7 percent of overall sales, but e-commerce revenue is growing much faster than sales at brick-and-mortar locations. The new sites will include dozens of direct fulfillment centers for next-day or same-day delivery of commonly ordered products. Another 100 local hubs will ship bulky items like patio furniture and appliances… It’s nearing last call for Toys R Us stores. They’re entering their final days with new liquidation markdowns. According to USA Today, the iconic toy retailer just announced a new round of markdowns, with discounts now ranging from 50 to 70 percent. Three months ago Toys R Us said it would liquidate all its U.S. stores. Unfortunately for bargain-hunters, the report says, some of the most valued, in-demand merchandise was snapped up weeks ago… IHOP’s recent “name change” has drawn some Twitter ridicule at the hands of Burger King, Wendy’s and others. USA Today says International House of Pancakes—which says it’s temporarily changing its name to IHOb to promote a new line of burgers—was targeted by Burger King, which changed its logo on Twitter and Facebook to Pancake King. Wendy’s, which has in the past expressed itself quite directly on Twitter, employed a bit of snark: “Remember when you were like 7 and thought changing your name to Thunder BearSword would be super cool? Like that, but our cheeseburgers are still better.” Whataburger, Checkers, Rally’s and Chili’s Grill & Bar also joined in.

MAY GIVE 15-SECOND ADS MORE ATTENTION Just as some networks look to trim ad loads, Nielsen is out this week with new research suggesting shorter-length television spots may deliver better ROI for marketers. It’s based on what’s known as neuroscience, which relies on a moment-by-moment analysis of how consumers react when they watch a spot. In this case, the research focused on 80 different ad campaigns where both a traditional 30-second ad and a shorter 15-second ad were shown to viewers. Nielsen’s team then measured study participants on a variety of metrics, including intent to buy the product, emotion, recall and overall attention to the commercial. Nielsen’s chief neuroscientist, Dr. Carl Marci, told Mediapost that the shorter ads did better on every metric except for holding viewer attention. But in every case the 15-second spots scored better on ROI than commercials twice as long. He’ll present the research at this week’s Advertising Research Foundation conference. Nielsen is already working with marketers to take 30-second commercials and use its proprietary neuro-compression technique to speed through all but the most engaging portions of the spot. Testing each of those ads currently costs $15,000 to $20,000 per ad—but Nielsen ultimately plans to sell the service to advertisers. For television sales representatives, the technology could also have an impact as it pushes some clients toward shorter-length—and less expensive—spots than they’ve typically bought in the past. But that may still be down the road. While Marci told Mediapost that 15-second ads appear to be the “sweet spot” for TV, his team is still working with ad agencies on how to fine-tune the compression algorithms and post-editing process. He thinks those efforts improve the effectiveness of compressed spots by 10 percent to 20 percent. Nielsen has been using neuroscience ad compression to help marketers make the leap from 30- to 15-second spots for several years. In a 2015 post, the company explained that electroencephalography (EEG) measurements can track the exact moments an ad activates memory, draws attention or prompts emotional response, and can also determine on an instant-by-instant basis which parts are and aren’t effective in engaging viewers. After the elements that trigger the most neurological responses are identified—typically comprising 10 to 14 seconds of a 30-second ad—the agency creatives rework the spot for story flow, continuity and visual seamlessness. That means only the most vital elements are included, which should deliver the biggest impact for the least amount of money. Based on Nielsen’s analysis three years ago, roughly 90 percent of neuroscience-optimized 15-second ads tested just as well as their 30-second counterparts. And some did even better.

Page 2: NEUROSCIENCE HELPS NIELSEN LIFT TELEVISION’S … · 2018-06-13 · According to USA Today, the iconic ... Got Talent and dabbled in politics in Missouri, has died. According to

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

NETWORK NEWS Veteran reporters Erin Andrews and Kristina Pink are joining the broadcast team for Fox’s Thursday Night Football. In making the announcement, the network said the pair of broadcast journalists would contribute to feature reports for Fox NFL Kickoff and Fox NFL Sundays, in addition to co-anchoring the pregame show. Andrews and Pink will join a lineup that includes commentary from Joe Buck, Troy Aikman and Mike Pereira. Meanwhile, Fox Sports has signed a deal with Facebook to stream one Big3 game per week live during the 2018 season. Big3 is the basketball league co-founded by Ice Cube that features former NBA stars like Hall of Fame guard Allen Iverson and Rashard Lewis in fast-paced, half-court games. The games streamed on the social network will lead into three additional games, which will air exclusively on Fox or FS1, as well as simulcasting live on the Fox Sports app, during the regular season and playoffs. The deal starts with the Big3 season opener in Houston on Friday, June 22nd. In addition to getting exclusive live access to nine games this summer, Facebook will host highlight packages and game recaps for all 37 games, including the championship in Brooklyn on Friday, August 24th… Neal Boyd, an opera singer who won NBC’s America’s Got Talent and dabbled in politics in Missouri, has died. According to Scott County (Missouri) Coroner Scott Amick, Boyd died on Sunday at his mother’s house in Sikeston. He was 42 years old. The coroner went on to say that Boyd had several medical issues, including heart failure, kidney failure and liver problems. He was injured in a car crash last year. Boyd won the $1 million prize on America’s Got Talent in 2008. He released the album My American Dream in 2009 and performed at the 2012 Republican National Convention in Tampa, Florida. He ran unsuccessfully as a Republican for a southeast Missouri House of Representatives seat, losing in the general election in 2012 and the primary in 2014… The former star of Zoo, James Wolk, is returning to CBS with the lead role in the straight-to-series psychological thriller Tell Me a Story on CBS All Access. Wolk will star opposite Paul Wesley, Danielle Campbell, Billy Magnussen and Kim Cattrall in the series from Kevin Williamson and Aaron Kaplan’s Kapital Entertainment. Wolk’s character is a young, idealistic and successful New York City restaurant owner whose life falls apart, sending him into a descent into madness that could cost him everything, including his life. In addition to starring on Zoo for three seasons, Wolk played Jeff Clayton on Goliath and had a recurring role on Showtime’s Billions… For the week of June 4th, ABC’s Good Morning America topped the morning news race with its biggest total-viewer lead over NBC’s Today Show in 13 months. Good Morning America had 4.09 million total viewers, while The Today Show posted 3.743 million total viewers. CBS This Morning drew 3.013 million. The Today Show won the race in the adult 25-54 news demo with 1.256 million demo viewers, besting Good Morning America’s 1.204 million. CBS This Morning managed 767,000 demo viewers.

AVAILS Looking for a great place to live and to work for an industry leader? WJCL 22, the Hearst-owned ABC affiliate in the Savannah-Hilton Head market is looking for a Local Sales Manager. The ideal candidate has 5 years of broadcast sales experience with a track record of success in the areas Business Development, Digital Sales and Transactional business. Prior management experience is a plus, but not a requirement. Click HERE to apply. EOE. WDSU, the NBC market-leading station in New Orleans, is seeking a dynamic Local Sales Manager who is

ready to take a growing station to the next level. This important leadership role encompasses local revenue management for our TV station, digital platforms, as well as our multicast station, MeTV New Orleans. Ideal candidate should be driven, goal-oriented, disciplined, customer-focused, and organized, with the ability to coach and motivate both newer and experienced AE’s to success in multi-platform advertising sales. Click HERE

to apply. EOE Do you want to work for two of the most iconic franchises in all of sports? Are you enthusiastic about being creative to help your clients achieve their goals? This is the opportunity of a lifetime. NESN (Boston), is searching for a New Business and Strategy Manager. You’ll be responsible for driving revenue opportunities for Dining Playbook (DPB) while strategizing how NESN could move the brand forward in the marketplace. In addition to the weekly show, this position will make significant contributions to the “gala” event associated with the program. CLICK HERE for more info on the job, or to apply now.

See your ad here tomorrow! CLICK HERE for details.

LOCAL L.A. AD SPEND TO EXCEED $9.1B IN 2018 Local advertising in Los Angeles will top $9.1 billion in 2018, according to BIA Advisory Services local advertising forecast, which says statewide spending is expected to exceed $18.8 billion across California’s 12 media markets. Statewide, the top five choices for expenditures in 2018 include direct mail ($4.81 billion), TV over-the-air ($2.66 billion), mobile ($2.38 million), online ($2.21 billion) and radio over-the-air ($1.66 billion). “Our California ad forecast shows that key advertisers are getting more comfortable with a cross-platform advertising approach that includes significant mobile and digital along with their traditional advertising,” said Mark Fratrik, chief economist and SVP, BIA Advisory Services. The Los Angeles market, according to BIA, represents 48 percent of California’s local ad spending. Key vertical markets of retail, general services and financial/insurance across the state will cumulatively spend nearly $8 billion divided between traditional and digital media, with mobile advertising experiencing the highest growth of any media. BIA’s forecast shows that financial and insurance industry advertisers will increase their spend by at least 18 percent from 2018 through 2022.

6/13/2018

Conan O’Brien

There is a Japanese pop band whose members are all over

80 years old. The band is known for their No. 1 hit song,

“Where Am I?”

Page 3: NEUROSCIENCE HELPS NIELSEN LIFT TELEVISION’S … · 2018-06-13 · According to USA Today, the iconic ... Got Talent and dabbled in politics in Missouri, has died. According to

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

AT&T, TIME WARNER DEAL GETS GREEN LIGHT A federal judge has signed off on AT&T’s $85 billion acquisition of Time Warner. As Yahoo Finance reports, it’s a case that’s captivated deal-watchers because it involves a vertical merger, a type of deal that rarely faces challenges from antitrust regulators. Judge Richard Leon didn’t attach any conditions to the approval, a blow to the Justice Department, which challenged the deal. No doubt Comcast was an interested observer in the outcome. It will now reportedly make a bid for Twenty-First Century Fox now that Judge Leon has blessed the Time Warner mega-deal. Comcast is set up for a bidding war with Walt Disney. AdAge, citing spending estimates from its upcoming 200 Leading National Advertisers report, says the deal forms the nation’s second-largest advertiser. The addition of Time Warner, according to the report, boosts AT&T’s total U.S. ad spending to $5.2 billion from $3.5 billion. Comcast, which includes NBC Universal, tops the list at $5.7 billion. Procter & Gamble is third at $4.4 billion. Expect more megadeals on the horizon, not just in media but in other spaces as well. The New York Times, in its account of the decision, says it’s “expected to unleash a wave of takeovers in corporate America.”

IT’S QUICKEN LOANS, THEN EVERYBODY ELSE Quicken Loans is dominating the home buying season. That’s according to Kantar Media, which examined advertising by mortgage lenders on television and online paid search from March 1st through May 21st of this year. Kantar says Quicken spent $57.3 million on network, cable, syndicated and spot TV ads—accounting for almost 70 percent of total spending across all 334 advertisers that Kantar found sponsoring home mortgage commercials during the period. To underscore Quicken’s sheer dominance, it’s worth noting that its closest competitor, Navy Federal Credit Union, spent roughly 10 percent of what Quicken did ($5.9 million). Rounding out the top five were AAG ($1.7 million), Ally Bank ($1.5 million) and Cashcall Mortgage ($1.3 million). Mostly absent from mortgage advertising during the television period examined were some of the nation’s largest lenders. Those include US Bank, Wells Fargo and Bank of America. Quicken was also near the top in paid search, but it wasn’t the leader. That distinction went to Lending Tree, which garnered 28.2 percent of all clicks on a select group of mortgage keywords studied by Kantar Media. Quicken was second with 19 percent.

THIS AND THAT Gray Television says Jason Effinger, the company’s executive vice president and chief digital and media technology officer, is leaving in the coming weeks. According to a news release, Effinger is leaving his post for family considerations. He’s previously worked in numerous news and operations positions at Gray stations across the U.S., as well Gray management.

PEOPLE STILL LOVE TRADITIONAL TV Despite an onslaught of new media platforms and devices, traditional media – including TV – remain resilient, according to new study from Kantar Media. Nearly every consumer (96%) surveyed for the research firm’s Dimension 2018 report, in the U.S. and four other global markets, continues to access television through a TV set. 88% listen to radio “offline” or through a traditional broadcast receiver. And most (79%) continue to look at print versions of newspapers and (82%) still read print magazines. The new numbers “speak to the power of these established

platforms,” Kantar says in the report. “This isn’t to say that the overall trend toward online services has been massively exaggerated or even that it is slowing, but it is worth remembering that we are currently living in a mixed media economy,” the report notes. The study found that consumers have a more positive attitude to ads in traditional media than those delivered online. “We believe that despite industry talk of improvements in targeting and

the uptake in delivering ads of greater relevance to those receiving them, consumers still feel that they see the same ads too often, and that they are exposed to ads for products they’ve already bought,” Kantar says. Advertising in traditional media scores better than online ads. “We continue to notice that ads shown online are less popular than ads displayed in the same medium but in a more traditional format,” the report says.

RECORD RETAIL IMPORTS ON THE HORIZON? The National Retail Federation (NRF) is predicting that imports at the nation’s major retail container ports will set record numbers this summer and fall. Monthly imports have been consistently running ahead of year-ago levels and the NRF/Hackett forecast sees that continuing through October—the furthest out the forecast goes.“We see imports continuing to grow,” said Ben Hackett, whose Hackett Associates tracks imports for the NRF.

6/13/2018

Seth Meyers

Facebook has announced a new page called “Memories” that will show users photos

from the past. It’s better than the original title for the page, “When You Were Thinner.”

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