Wall St. Speaks Out on NBC Ratings, Digital Ad Spend and More

Wible39s Weekly Ratings Hope Poor MVPD Ranks and Possible EU Share Shift JanneyMediaEntertainmentRatings Recovery amp8211 NBC won prime time TV ratings in the key 1849 demo according to Nielsen data setting the stage for larger CPM increases to bridge the monetization gap The 137 increase in PT ratings was certainly affected by the Olympics but also saw big successes from The Voice and The Blacklist This recovery shows that networks are able to work themselves out of bad ratings positions in a fragmented media landscape where it would ostensibly be difficult to build awareness around good shows even if you had them This rebound along with the surprise breakout hits like Breaking Bad and Vikings show how it is possible to build audiences without initial awarenessEuropean Privacy amp8211 GOOG39s loss in a European court on the quotright to be forgottenquot could help FB gain share andor enjoy a relative cost benefit The decision could mean significant compliance costs to implement adequate controls for search engines like GOOG MSFT39s Bing and others FB is exempt from the ruling given its approach of allowing advertisers to see user information eg page view history in a socalled quotreferral headerquot was not deemed to be a communication Additionally FB does not disclose confidential user information to third parties and allows users to control their own privacy settings which helps minimize regulatory scrutiny and costLocal Search amp8211 Search continues to be an important tool for smartphone users to find local information according to research by GOOG IpsosMedia CT and Purchased The study found that 50 of consumers who conducted a local search on a smartphone visited a store within a day vs 34 for computertablet searchers Local searches on a smartphone also led to a purchase 18 of the time vs 7 This should help continue to drive boost local advertising which is predicted to grow 36 annually to 159 billion through 2018 according to BIAKelsey We believe local ad growth could also help mobilecentric services such as TWTRCustomer Satisfaction amp8211 MVPDs continue to rank the lowest as an industry in customer satisfaction according to the American Customer Satisfaction Index This could be in part driven by the pricevalue perception of MVPD39s video and broadband offering as well as reliability issues Interestingly the two pending MVPD mergers TDTV and TWCCMCSA are at opposite sides of the rankings for Pay TV with TDTV both at the top although all saw declines We see this as a potential opportunity for online companies eg AMZN which are generally highly regarded to offer competing VMVPD servicesDigital Marketing Mix amp8211 US Digital advertising will grow to over 50 billion in 2014 according to eMarketer projections Over 59 of digital spending continues to be direct response driven by search MyersBizNet forecasts 423 billion in total digital advertising in 2014 and more than 53 billion in 2015 excluding search advertising By industry only Media and CPG have a 50 focus on branding While there is some uncertainty around proposed tax rule changes limiting the deductibility of advertising expense we expect the focus around branded advertising will benefit video content companies This includes YouTube AOL YHOO but will also benefit some of the ad networks and technology providers as brand advertisers seek to target specific audiences across multiple screensTony Wible can be reached at twiblejanneycom IMPORTANT DISCLOSURESResearch Analyst CertificationI Tony Wible the Primarily Responsible Analyst for this research report hereby certify that all of the views expressed in this research report accurately reflect my personal views about any and all of the subject securities or issuers No part of my compensation was is or will be directly or indirectly related to the specific recommendations or views I expressed in this research reportJanney Montgomery Scott LLC quotJanneyquot Equity Research Disclosure LegendIndividual disclosures for the companies mentioned in this report can be obtained by accessing our Firmamp8217s Disclosure SiteRead all Tony39s MediaBizBloggers commentaries at Wible39s Weekly JanneyMediaEntertainment Check us out on Facebook at MediaBizBloggerscomFollow our Twitter updates MediaBizBloggerThe opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaBizBloggerscom management or associated bloggers MediaBizBloggers is an open thought leadership platform and readers may share their comments and opinions in response to all commentaries

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Wall St. Speaks Out on NBC Ratings, Digital Ad Spend and More

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Tony Wible

"About That with Carl Mayer:" Alaina Donnellon (Episode 10: Political Spending) - By Carl Mayer

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Wall St. Speaks Out on NBC Ratings, Digital Ad Spend and More

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