PBS Local Underwriting Category Study
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1 PBS Local Underwriting Category Study Marlene Schneider, Market Enginuity PMDMC 2016
2 Goals of the Study Which business categories are the strongest for local PBS corporate support? Where are there synergies and/or differences across markets? What is driving underwriting revenue: broadcast, digital, event or multiplatform commitments? How do those business categories investing in public media compare with those advertising on commercial? Where should local underwriting professionals spend their time for the greatest impact? What are the benchmarks for number of accounts and account size across top categories?
3 Methodology Gathered account and revenue data from 20 stations Assigned category designation to each account Determined % of total revenue realized by each category for all stations combined Broke data down further to analyze by station asset or type of buy, as well as by genre and programming type Compared to Nielsen commercial category and ad spending data provided by TRAC Media for participating markets
4 Accounts and Revenue Results Type of buy % of total accounts Broadcast only 67% 60% Multiplatform 17% 33% Events + other platforms 17% 16% Events only 12% 5% % of total revenue Digital only 0.6% 0.4% Programming type % of total accounts Primetime 53% 34% News 15% 11% PBS KIDS 18% 9% % of total revenue Revenue and accounts from broadcast only underwriters far outpace all other types of buys Primetime leads in programming type
5 Accounts Across Markets 20 th Century Fox AARP AT&T Bank of America Blue Cross Blue Shield Challenger Schools Entertainment Industry Foundation (EIF) Goodwill Industries Kumon Afterschool Program Live Nation Mills Entertainment Monkey Joes Play Center Nonesuch Records PNC PPI-MANA (Latina women s association) Publix Super Markets Sony Pictures Walt Disney Company
6 Category Results: All Accounts Combined Category % total revenue % of accounts Avg # accounts per station Highest Lowest Median Average Healthcare 13% 9% 7 $251,715 $150 $7,140 $15,361 Nonprofit/Fou ndation Financial Services 10% 12% 8% 6% 9 5 $110,000 $150 $4,000 $9,671 $161,000 $100 $6,000 $14,416 Retail 8% 9% 7 $101,100 $215 $3,967 $9,679 Education 6% 8% 6 $150,000 $100 $3,000 $7,909
7 Category Results: Broadcast Only Category % total revenue % of accounts Highest Lowest Median Average Healthcare 14% 10% $251,715 $150 $7,015 $13,863 Nonprofit/ Foundation 12% 12% $110,000 $250 $4,320 $9,894 Retail 9% 10% $84,600 $215 $3,682 $9,096 Financial Services 9% 5% $161,000 $600 $7,780 $15,856 Performing Arts 5% 7% $36,000 $128 $4,220 $6,771
8 Category Results: Events Events Only 1. Financial Services 2. Nonprofit/Foundation 3. Manufacturing 4. Business/Consulting Services 5. Food/Beverage Events + Other Platforms 1. Financial Services 2. Insurance 3. Healthcare 4. Manufacturing 5. Nonprofit/Foundation Limited number of Events Only accounts, but more substantive # accounts and revenue in Events + Other. This suggests Events drive multiplatform agreements. PBS KIDS big driver in Healthcare DOWNTON ABBEY a driver in Financial Services, as were specials like LAST DAYS IN VIETNAM.
9 Category Results: Multiplatform Accounts Education most likely ranks high here in part due to PBS KIDS, and in part due to joint licensees, as Education is a top category for public radio stations. In Healthcare category, DOWNTON, THE ROOSEVELTS, NOVA, MASTERPIECE and PBS KIDS served as hook for multiplatform packages, driving up contract size. 1. Healthcare 2. Education 3. Telecom 4. Insurance 5. Performing Arts Multiplatform components across categories include some combo of digital, print, broadcast, event, local production.
10 Category Results: Digital Only There is an extremely limited number of Digital Only accounts, making this information unreliable. There is limited revenue that can truly be considered Digital Only. 1. Nonprofit/Foundation 2. Financial Services 3. Retail 4. Government 5. Travel Most digital revenue reported is part of a multiplatform on-air buy, and even then, usually driven by joint licensees and on-air radio, as opposed to TV.
11 Category Results: Primetime Healthcare: 52% of accounts bought Ken Burns s CANCER special. Following that, Drama was the next biggest driver (28% of accounts) Nonprofit/Foundation: AARP appears in multiple markets 1. Healthcare 2. Nonprofit/Foundation 3. Retail 4. Performing Arts 5. Travel Retail: antiques/auction accounts translate to roughly 50% of the revenue. They buy primarily ANTIQUES ROADSHOW and MASTERPIECE (not exclusively DOWNTON)
12 Category Results: News Nonprofit/Foundation: 67% of revenue driven by local news & public affairs programming Financial Services: 66% of revenue driven by nationallydistributed news programming (PBS NEWSHOUR, NBR) Healthcare: 66% of revenue driven by nationally-distributed news programming (PBS NEWSHOUR) 1. Nonprofit/Foundation 2. Financial Services 3. Healthcare 4. Energy 5. Telecom
13 Category Results: PBS KIDS Education: 57% of accounts are K-12 or K-8 private schools. Vast majority of revenue (96%) is ROS. Healthcare: majority of accounts (53%) are hospitals, with pediatric dentistry representing 35% of accounts. Revenue is still mostly ROS (72%) but there are some program/initiative-specific buys Nonprofit/Foundation: 30% of accounts have social service mission, 23% early education, 17% literacy, 13% family rec (i.e. the zoo) 1. Education 2. Healthcare 3. Nonprofit/Foundation 4. Museum/Art Gallery 5. Food/Beverage
14 Comparison to Commercial Category % total revenue AUTOS 8% RESTAURANT-QUICK SVC 5% AUTO DEALERSHIP 5% TRUCKS 4% AUTOS-DLR ASSN 4% CABLE TV SVCS 3% STORE-FURNITURE 3% LEGAL SVCS 3% INTERNET SVC PROVIDER 3% POLITICAL CAMPAIGN 3% Differences in business models make it hard to do an apples to apples comparison These top categories for commercial reveal some of the differences there is little overlap with top public media categories Can we capture any of the revenue from top commercial categories? Historically, it has been hard to capitalize
15 Auto various brands and dealers Comparison to Commercial: Overlapping Categories Universities & Schools Utilities Children s hospitals Government agencies (such as Furniture stores (although for state parks, education public TV this means antiques vs department, waste management, modern furniture) veteran s organizations, fire Legal services departments, airports, Museums, Zoos & Aquariums department of agriculture, department of economic Performing arts & festivals development, public schools, Sewing stores libraries ) Tourism organizations
16 Topline Findings Broadcast still drives the majority (60%) of revenue. Multiplatform accounts, while a smaller percentage (33%) of the revenue, have larger average contract value. Digital only revenue is virtually non-existent. Priority categories for all stations are Healthcare and Finance as they are strong categories with large average contract values. Education is added as a priority category for Joint Licensees due to its strength in Multiplatform commitments that included radio. Education is also a good fit for PBS KIDS, along with Healthcare. Retail is program-specific: the match between underwriter and program has to be the right fit, for example, sewing stores on sewing programs.
17 Topline Findings Cont. Finance is a good fit for News, especially in regards nationally-distributed News programming. Nonprofit/Foundations also make sense for News, but mostly in regards local News programming Insurance and Utilities look like growth categories given average account sizes and success in these categories at some, but not all, stations. For Events, Insurance and Finance accounts make strong prospects. CANCER: THE EMPEROR OF ALL MALADIES and DOWNTON ABBEY were revenue drivers. While there is little overlap between top categories in commercial TV and public TV, there are companies that advertise on commercial TV that also underwrite on public TV. Prospects here include those from the Automotive, Legal, Retail, Healthcare and Education categories, and a few others.
18 Applying The Learning: Opportunities Multiplatform: higher contract values, more likely to renew Digital: offer meaningful content to grow your digital audience (and revenue). Priority categories: prioritize the categories you approach in systematic, thoughtful way with a meaningful value proposition. High-Profile Specials: don t miss out on opps like CANCER, ROOSEVELTS, DISNEY, VIETNAM. Account Sizes: understand which categories typically have bigger budgets and think about where you should spend your time. Complement to Commercial: understand where there is overlap with commercial categories and opps to position PTV as a complement to the commercial mix.
19 Continuing the Conversation Your questions PBS category materials
20 THANK YOU PBS Development Services Contacts: Toanya Kessé Lauren Cummings Beth Drake TRAC Media Services Contact: Keith York
21 Special thanks to our Platinum Sponsors:
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