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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 Monday, February 20, 2017 DEALERSHIP PROFITS DECLINED IN ‘16 YEARLY DATA FROM NADA We’ve seen this coming as monthly reports had been released, but now with data for December from the National Automobile Dealers Association, we can report it officially—the average automotive dealership made less money in 2016 than it did in 2015. Sales were up at the average dealership 5.1% (to $59.591 million) and total gross profit (defined as including the cost of goods sold, but not selling, general or administrative costs or advertising) was up 3.0% to $6.771 million. But expenses were up 6.5% at the average dealership (from 92.8% of total gross in 2015 to 95.9% last Year), and that pulled down the Net Profit before tax to an average of $1.467 million, 2.4% less than dealers had cleared the year before. Advertising investment rose by 5.9% at the average dealership to $587,787. Advertising represented 8.7% of total gross (up from 8.4% in 2015) and $633 per new vehicle retailed (up from $606). Domestic dealerships were hit harder than those that handle imports. While sales were up 7.5% at those dealerships, expenses rose 8.1% and net profit fell by 5.4%. (Notable was that domestic dealerships raised advertising by a greater percentage (9.4%) than the average). Import dealers’ sales only rose by 2.8% and expenses rose by 5.1%, but the average import dealership still managed to eke out a tiny increase in net profit of 0.2%. “Luxury brand” dealerships averaged a 1.2% increase in total sales with a 2.9% increase in expenses and that brought about a 3.1% drop in net profit. Curiously, the average luxury brand dealership actually reduced advertising expenditures last year by 5.8%. And “Mass-Market” dealerships without regard to country of origin saw sales rise by 5.8%, not enough to offset a 7.2% increase in expenses and a 2.3% decline in net profit. Led by those that increased advertising on domestic brands, the average mass-market dealer increased advertising by 7.4% to an average of $632 per new vehicle retailed, up from $602 in 2015. Domestic dealerships averaged $36,920 per new vehicle sold, 3.7% better than they had done in 2015. Imported brands averaged $32,443, up 2.1%. Luxury brands, regardless of origin, averaged $52,296, up 4.2%. For all dealerships and brands the average was $34,449, up 3.0%. There are more stories in the NADA’s figures and (much like news departments running a special series during the February sweep), we’ll be bringing you more analysis in our own special series this week. ADVERTISER NEWS United Auto Workers union president Dennis Williams told reporters the union is in discussions to produce a Buy American advertising campaign. Advertising Age says the idea was inspired by a revived ‘Buy American’ sentiment and Williams added “I haven’t seen it this way for many years”……GNC, which had wanted to run a Super Bowl spot but was vetoed by the NFL, reported a 12% decline in sales at company-owned stores and suspended paying dividends to shareholders. The company has admitted it had a “badly broken business model” and hoped to utilize the big reach of a Super Bowl spot to highlight changes it’s making in its stores……Tempur Sealy North American net sales were up 1.9% in the fourth quarter, but as we reported a few weeks ago, it has pulled its product from Mattress Firm stores after the companies could not make a deal on pricing. Referring to the loss of its biggest retailer, the CEO said, “’(20)17 is going to be a little choppy, a little fluid. ’18 is going to be better”…… Lidl will launch its grocery chain on the East Coast earlier than expected, with the first stores opening in the third quarter and 100 expected to be operating within a year. But it’s not planning to emphasize low cost as its European operations have. A company presentation calls it a “hybrid,” and adds, “After three years of research we discovered that U.S. consumers don’t like discount groceries”……After reaching its goals of becoming 95% franchisee-owned, Wendy’s wants to add 1,000 more stores by 2020. The chain says it now has fewer but larger franchisees with the average franchisee now operating 15 units……Nation’s Restaurant News reports Restaurant Brands Inc., parent of Burger King and Tim Horton’s, has shown interest in buying Popeye’s Louisiana Kitchen. RBI is owned by aggressive acquisitor 3G Capital……MGM Resorts revenue was up 17% in the fourth quarter, but grew just 2% on a “same-store” basis. The company recently opened an operation in Maryland and sold a casino in Reno....(continued on page 3)

DEALERSHIP PROFITS DECLINED IN ‘162.9% increase in expenses and that brought about a 3.1% drop in net profit. Curiously, the average luxury brand dealership actually reduced advertising

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Page 1: DEALERSHIP PROFITS DECLINED IN ‘162.9% increase in expenses and that brought about a 3.1% drop in net profit. Curiously, the average luxury brand dealership actually reduced advertising

www.SpotsnDots.com

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 Monday, February 20, 2017

DEALERSHIP PROFITS DECLINED IN ‘16YEARLY DATA FROM NADA We’ve seen this coming as monthly reports had been released, but now with data for December from the National Automobile Dealers Association, we can report it officially—the average automotive dealership made less money in 2016 than it did in 2015. Sales were up at the average dealership 5.1% (to $59.591 million) and total gross profit (defined as including the cost of goods sold, but not selling, general or administrative costs or advertising) was up 3.0% to $6.771 million. But expenses were up 6.5% at the average dealership (from 92.8% of total gross in 2015 to 95.9% last Year), and that pulled down the Net Profit before tax to an average of $1.467 million, 2.4% less than dealers had cleared the year before. Advertising investment rose by 5.9% at the average dealership to $587,787. Advertising represented 8.7% of total gross (up from 8.4% in 2015) and $633 per new vehicle retailed (up from $606). Domestic dealerships were hit harder than those that handle imports. While sales were up 7.5% at those dealerships, expenses rose 8.1% and net profit fell by 5.4%. (Notable was that domestic dealerships raised advertising by a greater percentage (9.4%) than the average). Import dealers’ sales only rose by 2.8% and expenses rose by 5.1%, but the average import dealership still managed to eke out a tiny increase in net profit of 0.2%. “Luxury brand” dealerships averaged a 1.2% increase in total sales with a 2.9% increase in expenses and that brought about a 3.1% drop in net profit. Curiously, the average luxury brand dealership actually reduced advertising expenditures last year by 5.8%. And “Mass-Market” dealerships without regard to country of origin saw sales rise by 5.8%, not enough to offset a 7.2% increase in expenses and a 2.3% decline in net profit. Led by those that increased advertising on domestic brands, the average mass-market dealer increased advertising by 7.4% to an average of $632 per new vehicle retailed, up from $602 in 2015. Domestic dealerships averaged $36,920 per new vehicle sold, 3.7% better than they had done in 2015. Imported brands averaged $32,443, up 2.1%. Luxury brands, regardless of origin, averaged $52,296, up 4.2%. For all dealerships and brands the average was $34,449, up 3.0%. There are more stories in the NADA’s figures and (much like news departments running a special series during the February sweep), we’ll be bringing you more analysis in our own special series this week.

ADVERTISER NEWS United Auto Workers union president Dennis Williams told reporters the union is in discussions to produce a Buy American advertising campaign. Advertising Age says the idea was inspired by a revived ‘Buy American’ sentiment and Williams added “I haven’t seen it this way for many years”……GNC, which had wanted to run a Super Bowl spot but was vetoed by the NFL, reported a 12% decline in sales at company-owned stores and suspended paying dividends to shareholders. The company has admitted it had a “badly broken business model” and hoped to utilize the big reach of a Super Bowl spot to highlight changes

it’s making in its stores……Tempur Sealy North American net sales were up 1.9% in the fourth quarter, but as we reported a few weeks ago, it has pulled its product from Mattress Firm stores after the companies could not make a deal on pricing. Referring to the loss of its biggest retailer, the CEO said, “’(20)17 is going to be a little choppy, a little fluid. ’18 is going to be better”…… Lidl will launch its grocery chain on the East

Coast earlier than expected, with the first stores opening in the third quarter and 100 expected to be operating within a year. But it’s not planning to emphasize low cost as its European operations have. A company presentation calls it a “hybrid,” and adds, “After three years of research we discovered that U.S. consumers don’t like discount groceries”……After reaching its goals of becoming 95% franchisee-owned, Wendy’s wants to add 1,000 more stores by 2020. The chain says it now has fewer but larger franchisees with the average franchisee now operating 15 units……Nation’s Restaurant News reports Restaurant Brands Inc., parent of Burger King and Tim Horton’s, has shown interest in buying Popeye’s Louisiana Kitchen. RBI is owned by aggressive acquisitor 3G Capital……MGM Resorts revenue was up 17% in the fourth quarter, but grew just 2% on a “same-store” basis. The company recently opened an operation in Maryland and sold a casino in Reno....(continued on page 3)

Page 2: DEALERSHIP PROFITS DECLINED IN ‘162.9% increase in expenses and that brought about a 3.1% drop in net profit. Curiously, the average luxury brand dealership actually reduced advertising

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

NETWORK NEWS Busy Phillips (Cougar Town, New Girl) is returning to network television with a starring role on the new NBC comedy pilot The Sackett Sisters. The single-camera series revolves around an estranged family that reunites after two of the sisters perform an act of heroism and are forced to navigate the aftermath together. Luke Del Tredici (30 Rock) will write the script and executive produce along with Tina Fey, Robert Carlock and David Miner……Anders Holm (Workaholics) has been cast in the lead of the new untitled comedy from Mindy Kaling and Charlie Grandy. Kaling will have a recurring role in the single-camera pilot for NBC……The American Idol reboot on NBC is getting closer to reality after a legal issue was settled. A NYC-based Judge signed off on a reorganization plan submitted by Freemantle Media and 19 Entertainment……Santiago Cabrera (Heroes) will join Charlie Rowe and Jennifer Finnigan in the cast of the CBS summer drama Salvation. The series follows a smart MIT grad student (Rowe), a tech billionaire (Cabrera) and a low-level Pentagon official (Finnigan) as they discover that an asteroid is just six-months from colliding with the earth. Liz Kruger and Craig Shapiro serve as showrunners, executive producers and scriptwriters based on the story by Matt Wheeler……Sam Adegoke has been cast as lead to star with Natalie Kelley and Elizabeth Gillies on the CW reboot of the iconic 1980’s primetime soap, Dynasty. Adegoke will play Jeff Colby, a billionaire tech guru who fought his way up from humble beginnings to his present prominence. Adegoke recently was booked in a starring role on Lifetime’s biopic Michael Jackson: Searching for Neverland……Michael Cudlitz (The Walking Dead) is coming back to life on the new ABC hour-long comedy pilot The Trustee. Cudlitz will play Captain Timothy Waits, a wry and sardonic police captain who has learned to appreciate Eliza Radley’s (Meaghan Rath) unorthodox policing methods. Cudlitz’s character Abraham was brutally killed off in the season opener of The Walking Dead……Celebrated chef and restauranteur Aaròn Sànchez will join the upcoming eighth season of Masterchef on Fox. He will serve as a third judge along with Gordon Ramsey and Christina Tosi in the cooking competition. Sànchez was a guest judge on the series in season 7 and will be featured in upcoming episodes of Masterchef Junior……ABC’s Doomsday pilot has cast Jack Davenport (Smash) as a series regular. He will play Warren, a well-known intellectual playwright turned action screen writer, who is part of the top-secret Doomsday Project think-tank, formed in the days after 9-11. Davenport’s character is described as imaginative and creative, and sees the world like a story, a talent that helps him think like and even empathize with the enemy. ECONOMIC NEWS Leading Economic Indicators from the Conference Board showed a 0.6% rise in the index last month. The Conference Board’s director of business cycles stated “If this trend continues, the U.S. economy may even accelerate in the near term.”

AVAILS WSAV-TV (Nexstar Media, NBC affiliate) in beautiful Savannah, GA, is looking for a goal-oriented, dynamic, energetic, salesperson that knows how to develop, present, and close creative customer-focused marketing solutions. If you enjoy a fast-paced team-oriented environment and the ability to manage your time effectively to develop prospects, cold call, create marketing campaigns, and close new business, we want to talk to you. Send resume [email protected] and APPLY ONLINE. No calls please. . Pre-employment drug screen and background checks required.

EOE M/F/D/V WMBF News, the Raycom-owned NBC affiliate in Myrtle Beach, SC seeks a dynamic General Sales Manager. This individual will have experience coaching, training and leading team members to consistently grow market share and new revenue streams. The candidate must be an innovative leader who knows how to maximize revenue on TV, Online and Mobile. A successful track record driving local and digital

revenue and selling creative solutions and revenue projects is required. Great station & company! To apply, PLEASE CLICK HERE No calls. EOE-M/F/D/V Digital Sales Manager: Tribune Media / WGN-TV, Chicago’s Very Own has an immediate opening for an innovative leader and revenue generating catalyst.

You would be joining a highly successful sales team that sells some of the most powerful second screens in Chicago: wgntv.com,

TheWeatherChannel.com, and a multitude of audience extension / marketing services opportunities. If you have successful digital sales experience and you love to lead, coach, create, sell and help businesses grow, send a cover letter/resume to: [email protected] EOE. WRAL-FM in Raleigh, NC, seeks experienced Radio Local Sales Manager to achieve revenue goals by creating and implementing winning sales strategies. Responsible for all aspects of managing team of AEs. Heavy focus on new business development, growing existing accounts through new ideas and increasing shares of transactional business. Three+ years radio sales management experience with proven track record and fervent desire to win required. All candidates must APPLY ONLINE. EOE M/F All Capitol Broadcasting Company properties are tobacco free. CBC participates in E-Verify. Do you like telling a story and digging into numbers and demographics? WNCN, Nexstar Broadcasting’s CBS affiliate in Raleigh-Durham has a Research Associate position available. This person will be a resource for the local staff and clients on the retrieval and massaging of research data. Candidates must possess the ability to format data and effectively present station in a sellable / advantageous position in a fast-paced environment. 2-3 years of working with NSI/Nielsen products and services WideOrbit Media Sales/Traffic and Kantar preferred. APPLY HERE. EOE.

2/20/2017

One Liners

If I ever need a heart transplant, I’d want my ex’s.

It’s never been used.

Page 3: DEALERSHIP PROFITS DECLINED IN ‘162.9% increase in expenses and that brought about a 3.1% drop in net profit. Curiously, the average luxury brand dealership actually reduced advertising

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

ACCOUNT ACTIONS The Richards Group has been named agency-of-record for TGI Friday’s for the second time—the agency had taken over creative and media for the client in 2011, but the two hadn’t done anything together since 2015. The restaurant spent about $40 million in media for last year’s first nine months according to Kantar Media estimates. COMPETITIVE INFO Any time you don’t like your revenue figures, it could be worse—you could be selling print advertising! Newspapers have been struggling for years, and now one of magazine’s biggest publishers, Time Inc., with titles including Sports Illustrated and People, saw print advertising down 10% in the fourth quarter. Circulation revenue was even worse with sales at newsstands down 19% and subscriptions down 8.6%. Income from digital advertising was up, but not enough to offset all the bad news from other revenue sources. THIS AND THAT Upfront presentations media make to advertisers and agencies have traditionally been lavish spectacles, but Viacom has decided to change its approach this year. Led by new CEO Robert Bakish and new ad sales boss Seth Moran, Adweek reports the current plan is to host “intimate individual dinners and presentations” with big agencies and holding companies. “We wanted to cater to their needs, have it in a relaxed setting, and have access to the top leadership at Viacom so they can truly understand the company they’re investing in,” Moran said……New analysis from Inmar shows that the share of coupon redemption for offers loaded directly to customers’ loyalty accounts was up 20% last year, while the share of redemption for coupons printed in Sunday papers’ Free-Standing Inserts was down 10%. Onmar said it’s the first time that shoppers are reporting they use Load-to-Card offers more often than coupons in FSIs or store circulars—but it still needs to be noted that the redemption rate for L2C coupons is just 6.2%. ADVERTISER NEWS (continued from page one)... In the midst of what some have called a “restaurant recession,” there was a flurry of CEO “resignations” last year. It’s starting again—the CEO of DineEquity will leave next week after IHOP comp sales were down 2.1% and Applebee’s fell by 7%......Denny’s did a bit better with fourth quarter same-store sales up 0.5%, although that pulled down the full year gain a bit to plus 0.9%......Potbelly comps at company-owned stores were up 0.1%. The chain added 28 units last year and projects 45-60 more this year. Potbelly skews towards company-owned stores with just a handful of franchised units.... Why are there are so many sales on a Presidents’ Day weekend? An article in Forbes suggests the reason every mattresses and appliance store has a sale is pretty simple. The purchase usually requires input from both members of a household. A three day weekend, when both are off work, is the perfect time to troll for business.

AVAILS CBS 5 and 3TV, Phoenix, AZ is looking for Account Executives to join their successful sales team. We need dynamic, motivated individuals who will present, develop, manage and solicit new and existing business accounts. The Account Executive will assess the market and meet with local businesses and learn about their marketing and advertising needs. You will achieve assigned revenue goals through sale of airtime, digital or other products and services. CLICK HERE for more info or

to apply now. EOE. KELOLAND, (Sioux Falls), one of the top CBS affiliates, seeks an experienced, high performing, multi-platform media seller who is interested in a rare opportunity to join the best team and sell the best platforms in the KELOLAND market. Candidate must be willing to move at a fast pace and be capable of successfully contributing to all revenue streams with both new and existing clients. Our AEs are well compensated

and perform at market leading levels. CLICK HERE for more info or to apply now. (Job ID: KLO-000048) NBC Connecticut (West Hartford) is looking for a dynamic, aggressive Account Executive who will develop a solid understanding of our ad products and have solid consultative selling skills to be able to best develop solutions to meet client needs and close deals. Revenue closure, account relationship building, customer satisfaction, and product implementation success are key responsibilities. Minimum 1 year of sales experience and a Bachelor’s degree required. Get more infomation or APPLY HERE. EOE

Need to place a job in Spots n Dots? Do it ONLINE HERE, or send your listing to [email protected]

BUSINESS BYTES Kraft Heinz made an offer of $143 billion to buy Unilever, which was rejected by the British company as undervaluing its worth. Kraft Heinz said it will keep trying to make a deal. Kraft Heinz is owned by 3G Capital (with backing from Warren Buffett’s Berkshire Hathaway), the same equity fund that owns Restaurant Brands International and controls Anheuser-Busch InBev. A few months ago there had been speculation 3G might make a run to acquire Coca-Cola. Stop us if you’re heard this before (and you have) but the long-awaited merger between Walgreens and Rite Aid may now be back on track. The New York Post reports the Federal Trade Commission is expected to approve the deal in the next 2-4 weeks, before the current director of competition for the FTC hands in her resignation. Walgreens is said to have increased both the number and quality of stores it will sell to Fred’s, now expected to be close to 1200 instead of the previous 865 locations. And Fred’s has just beefed up its executive ranks with hires of three senior managers including two that had been with CVS.

2/20/2017

One Liners

When an employment application asks who is to be notified in case of

emergency, I always write, “A very good doctor”.