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Given unfolding and unprecedented economic developments, TVB announced in mid-October that it would re-visit its Forecast. We are reaching out to all of our input sources and ask them to review the projections they gave us last summer. Given the instability in all markets, however, it's unlikely that new numbers will come together very soon. In the interim, be aware that the above numbers are subject to change pending circumstances in the consumer economy and the advertising marketplace. Amended forecasts will be issued as soon as market visibility allows.

Chris Rohrs

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Page 1: Chris Rohrs

Given unfolding and unprecedented economic developments, TVB announced in mid-October that it

would re-visit its Forecast. We are reaching out to all of our input sources and ask them to review the

projections they gave us last summer. Given the instability in all markets, however, it's unlikely that new numbers will come together very soon. In the interim,

be aware that the above numbers are subject to change pending circumstances in the consumer

economy and the advertising marketplace. Amended forecasts will be issued as soon as market visibility

allows.

Page 2: Chris Rohrs
Page 3: Chris Rohrs

Y-T-D 2008 Spot Revenue Analysis

1st Q ’08 -5.9 -2.32nd Q ’08 -9.1 -7.61st H ’08 -7.6 -5.1

July ’08 -9.7 -6.1Y-T-D -8.0 -5.3

TVB Estimates GTSS

Spot TV % Change Base Total

Page 4: Chris Rohrs

Automotive – Fctry, Dlr Assn & Dlrs -13.5Restaurants -3.8Home & Building -4.9Telecom, incl. Cable & Satellite Srvcs+1.5Government & Organizations +28.8Beauty, Health & Medical Srvcs -0.9Financial -7.5Amusements & Events -0.1Property & Casualty +12.9Motion Pictures -21.9

1st Half 2008 Category Analysis

Source: TNS Media Intelligence

% ChangeTop 10 Spot Categories2008/2007

Page 5: Chris Rohrs

Automotive Ad Spending 1st H 2008

Chrysler-Cerberus 538,845 766,336 -29.7Ford 864,452 1,197,493 -27.8General Motors 1,384,186 1,419,022 -2.5

Subtotal Big 3 2,787,483 3,382,850 -17.6

BMW 125,613 124,126 1.2Daimler 175,018 124,349 40.7Honda 543,354 548,858 -1.0Hyundai/KIA 399,569 462,426 -13.6Isuzu 655 1,401 -53.3Mazda 176,807 178,556 -1.0Mitsubishi 75,443 104,004 -27.5Nissan 477,881 564,048 -15.3Toyota 918,522 1,025,006 -10.4Volkswagen 204,077 154,720 31.9

Subtotal All Other 3,096,939 3,287,495 -5.8

Grand Total 5,884,423 6,670,345 -11.8

Overall $ Overall $ %

Parent Co. 1st H 2008 1st H 2007 Ch.

Source: TNS Media Intelligence, 9/2/08

Page 6: Chris Rohrs

Automotive Spot TV $ 1st H 2008

Chrysler-Cerberus 203,218 226,761 -10.4Ford 245,363 275,522 -10.9General Motors 229,234 339,948 -32.6

Subtotal Big 3 677,816 842,232 -19.5

BMW 26,933 32,756 -17.8Daimler 43,724 37,983 15.1Honda 177,104 209,015 -15.3Hyundai/KIA 106,656 103,837 2.7Isuzu 130 347 -62.4Mazda 55,285 44,087 25.4Mitsubishi 18,373 53,938 -65.9Nissan 139,717 172,462 -19.0Toyota 319,347 341,701 -6.5Volkswagen 48,743 38,790 25.7

Subtotal All Other 936,012 1,034,918 -9.6

Grand Total 1,613,828 1,877,150 -14.0

1st H 2008 1st H 2007Spot TV $ Spot TV $ %

Parent Co. ($000) ($000) Ch.

Source: TNS Media Intelligence, 9/2/08

Page 7: Chris Rohrs

Automotive Spot TV Share 1st H 2008

Chrysler-Cerberus 37.7 29.6Ford 28.4 23.0General Motors 16.6 24.0

Subtotal Big 3 24.3 24.9

BMW 21.4 26.4Daimler 25.0 30.5Honda 32.6 38.1Hyundai/KIA 26.7 22.5Isuzu 19.9 24.7Mazda 31.3 24.7Mitsubishi 24.4 51.9Nissan 29.2 30.6Toyota 34.8 33.3Volkswagen 23.9 25.1

Subtotal All Other 30.2 31.5

Grand Total 27.4 28.1

1st H 2008 1st H 2007Spot TV Spot TV

Parent Co. % Share % Share

Source: TNS Media Intelligence, 9/2/08

Page 8: Chris Rohrs

Automotive Spot TV Share

2002 30.42003 28.62004 28.62005 27.22006 31.12007 30.2

1st H 2007 28.1 1st H 2008 27.4

AutomotiveAd Spending for Spot TV

Year of Share

Source: TNS Media Intelligence, 9/2/08

Page 9: Chris Rohrs

Base Business Analysis

Year % Change2000 8.72001 -15.62002 8.72003 0.62004 4.62005 -1.22006 2.42007 -1.8Thru July 2008 -8.0

Page 10: Chris Rohrs

2007/2008 Political Analysis

1st Half 40 548 508 1270.0

2nd Half 426 1,7021,276 299.5

Total 466 2,250 1,784 382.8

Source: CMAG

Dollars (M) 2007 2008(e) $ Change % Change

Page 11: Chris Rohrs

Now The Year Ahead

What Can We Expect?

Page 12: Chris Rohrs

Here’s What the Industry Analysts

Are Saying About 2009

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Participating Firms

BIA FinancialBMO Capital MarketsJackMyers Media Business ReportUniversal McCannVeronis Suhler StevensonVogel CapitalWachovia

Page 14: Chris Rohrs

BIA Financial

Local Spot -5.0 +6.0Nat’l Spot -7.0 +5.0Network -4.5 +5.0Nat’l Synd. -3.5 +4.5Network Cable +1.5 +5.0Local Cable +2.5 +6.0Brdcst Online +25.0 +15.0Brdcast Wireless N/A +25.0

2009 2010(% Change)

Page 15: Chris Rohrs

BMO Capital Markets

Total Spot -9.0 +17.0Network -1.0 +4.0Syndication -3.0 +2.0Network Cable +6.0 +6.0Local Cable +1.0 +2.0

(% Change)2009 2010

Page 16: Chris Rohrs

JackMyers Media Business Report

Local Spot -11.5 +3.0Nat’l Spot -7.5 +4.0Network -4.0 0.0Syndication 0.0 +1.0Network Cable +3.0 +4.0Local Cable +1.0 +3.5Brdcst Online +20.0 +18.0Brdcst Wireless +40.0 +50.0

2009 2010(% Change)

Page 17: Chris Rohrs

Universal McCann

Local Spot 0.0 +4.0Nat’l Spot -6.0 +7.0Network 0.0 +6.0Syndication +1.0 +3.0Network Cable +4.0 +6.0Local Cable +4.0 +7.0Brdcst Online +10.0 +10.0Brdcst Wireless +8.0 +10.0

2009 2010(% Change)

Page 18: Chris Rohrs

Veronis Suhler Stevenson

Local Spot -6.1 4.2Nat’l Spot -11.1 5.5Network -5.1 4.5Syndication -3.5 2.4Network Cable 5.1 6.3Spot Cable 6.8 8.6Brdcst Online 26.5 21.2Brdcst Wireless 51.4 44.7

2009 2010(% Change)

Page 19: Chris Rohrs

Vogel Capital

Local Spot -3.0 +3.0Nat’l Spot -3.0 +2.0Network +1.5 +1.5Syndication +1.5 +2.0Network Cable +2.0 +2.5Local Cable 0.0 +2.5Brdcst Online +7.5 +5.0Brdcst Wireless +7.0 +6.0

2009 2010(% Change)

Page 20: Chris Rohrs

Wachovia Securities

Local Spot -6.0 +2.0Nat’l Spot -10.0 +8.0Network 0.0 +3.0Syndication -1.0 +1.0Network Cable +10.0 +12.0Local Cable +3.0 +5.0Brdcst Online +50.0 +50.0Brdcst Wireless +60.0 +60.0

2009 2010(% Change)

Page 21: Chris Rohrs

Industry Analysts Estimates 2009 – Local Spot

-14

-12

-10

-8

-6

-4

-2

0Local Spot Ranges% Change

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Industry Analysts Estimates 2009 – Nat’l Spot

-12

-10

-8

-6

-4

-2

0National Spot Ranges% Change

Page 23: Chris Rohrs

Local Spot -5.3 +3.7Nat’l Spot -7.4 +5.3Network -1.9 +3.4Syndication -1.2 +2.3Network Cable +4.5 +6.6Local Cable +2.6 +4.9Brdcst Online +23.2 +19.9Brdcst Wireless +33.3 +32.6

Summary of the Industry Expert Forecasts

2009 2010(% Change)

Page 24: Chris Rohrs

TV Rep Surveyfor 2009-2010

Page 25: Chris Rohrs

National Spot -11.9 +12.0

National Online +21.6 +21.6

12 Participants

TV Rep Survey

2009 2010(% Change)

Page 26: Chris Rohrs

2009 Rep SurveyMean

-11.9%

-18-16-14-12-10-8-6-4-20

% Change

Page 27: Chris Rohrs

And Now TVB’s Forecast for 2009 & 2010

Page 28: Chris Rohrs

Market Influences – 2009/2010

Consumer confidence, spending… Energy prices Food prices Debt and credit problems Real estate Political leadership

Page 29: Chris Rohrs

Market Influences – 2009/2010

Overall ad spending levels“Established”/”Emerging” balanceKey categories: Auto Political Retail Telecom Financial

Page 30: Chris Rohrs

Market Influences – 2009/2010

Technology and consumer adoption(DVR; online video; mobile web)IT and e-Biz applicationsSocial media marketingInteractive TV adoptionGrowth rates of Search and online display ads

Page 31: Chris Rohrs

Borrell Projection – Total Local Online

Source: Borrell Associates, Aug. 2008

Local Online Ad Revenue Trends 2003-2010F

Page 32: Chris Rohrs

Borrell Projection – Local Broadcast Online

Local Broadcast TV Web Revenues ($ in millions)

$75 $119$283

$447

$772

$1,158

$1,448

$1,665

2003 2004 2005 2006 2007 2008p 2009f 2010f

Source: Borrell Associates, Aug. 2008

Local Broadcast TV Web Revenues

3.8% 5.8% 6.7% 8.1% 8.8% 9.0% 9.3% 8.8%Shareof Total

Page 33: Chris Rohrs

TVB Forecast 2009

Local Spot -1.0 to +2.0Nat’l Spot -10.0 to -7.0Total Spot -5.0 to -2.0Station Website +25 to +35Station Wireless +25 to +50

(% Change)

Page 34: Chris Rohrs

TVB Forecast 2010

Local Spot +1.5 to +5.5Nat’l Spot +12.5 to +16.5Total Spot +6.0 to +10.0Station Website +20 to +25Station Wireless +35 to +75

(% Change)

Page 35: Chris Rohrs

Base Business Comparison

2004 4.6% $1,600 10.1%

2005 -1.2% 479 -5.5%2006 2.4% 1,980 8.5%2007 -1.8% 466 -7.4%2008(e) -7.4% 2,250 -0.0%2009(e) 3.1% 700 -3.5%2010(e) 2.6% 2,000 8.0%

TotalBase POL $ (Base + Political)

Source: CMAG, TVB

(% Change)At Mid-Point of Forecast Range

Page 36: Chris Rohrs

2003

-2.42004

+10.12005

-5.52006

+8.52007

-7.42008*

-0.02009*

-3.52010*

+8.0

Over Last 12 Mos.Over Last 24 Mos.

Total Spot TV: 2 Year Increments

Source: Universal McCann/TVB Station Time Sales Surveys

* TVB Estimate

(% Change)At Mid-Point of Forecast Range

Page 37: Chris Rohrs

Index of the Growth of Spot TV

In 24 Month Cycles(‘95-’96 = 100)

At Mid-Point of Forecast Range

123.7127.8

123.2 123.6

'03-'04 '05-'06 '07-'08 '09-'10

Page 38: Chris Rohrs

2008

Local Station Revenue Model

(Dollars in millions)

Television Advertising $24,550 93.8Internet 1,158 4.4Mobile 21 0.1Retransmission Consent 450 1.7

Total Local Station Revenue $26,179 100.0

% of Total

Sources: Universal McCann, Borrell Associates, Information Week, Heavy Reading, B&C, SNL Kagan

Page 39: Chris Rohrs

2010

Local Station Revenue Model

(Dollars in millions)

Television Advertising $25,585 89.8Internet 1,665 5.8Mobile 250 0.9Retransmission Consent 1,000 3.5

Total Local Station Revenue $28,500 100.0

% of Total

Sources: Universal McCann, Borrell Associates, Information Week, Heavy Reading, B&C, SNL Kagan

Page 40: Chris Rohrs

Local Station Revenue Model

$22,000$23,000$24,000$25,000$26,000$27,000$28,000$29,000

2008 2010

Spot TV Internet Mobile Retrans($ millions)

Page 41: Chris Rohrs

Index of the Growth of Local Revenue

In 24 Month Cycles(‘95-’96 = 100)

All revenue

124.2130.0 130.2

136.5

'03-'04 '05-'06 '07-'08 '09-'10

Page 42: Chris Rohrs

Thank You for Joining Us Today.

Go to www.tvb.orgfor presentations

Page 43: Chris Rohrs