The E.W. Scripps Company (SSP): Marketing Mix Analysis [11-2024 Updated]

As of 2024, the E.W. Scripps Company (SSP) continues to innovate within the competitive media landscape, leveraging its diverse marketing mix to enhance its reach and revenue streams. This includes a robust portfolio of advertising revenue from both local and national businesses, strategic partnerships with major networks, and an expanding digital presence. Dive deeper into the specifics of their Product, Place, Promotion, and Price strategies to understand how Scripps is positioning itself for continued growth and success.

The E.W. Scripps Company (SSP) - Marketing Mix: Product

Advertising revenue from local and national businesses

The E.W. Scripps Company reported core advertising revenue of $315.8 million in the third quarter of 2024, a decrease from $346.0 million in the same period of 2023. For the first nine months of 2024, core advertising revenue totaled $986.1 million, down from $1.1 billion in 2023.

Political advertising for various candidates and groups

Political advertising revenue surged to $131.4 million in the third quarter of 2024, compared to just $9.1 million in the same quarter of 2023. Year-to-date figures show political revenue of $176.9 million in 2024, a significant increase from $16.5 million in 2023.

Distribution revenue from cable and satellite operators

Distribution revenue for the third quarter of 2024 stood at $191.8 million, down from $203.9 million in the third quarter of 2023. Year-to-date distribution revenue increased to $593.9 million in 2024, up from $571.3 million in 2023.

Digital advertising across multiple platforms

Scripps Networks, which includes several digital platforms, generated total operating revenues of $201.7 million in the third quarter of 2024, reflecting a decline of 6.4% from $215.4 million in the same quarter of 2023. For the first nine months of 2024, revenues were $619.7 million, down from $663.1 million in 2023.

Programming and content creation for local and national broadcasts

Programming expenses increased by $1.8 million or 1.5% in the third quarter of 2024, totaling $124.7 million, up from $122.9 million in the same period of 2023. Year-to-date programming costs rose to $378.6 million, a 4.9% increase from $360.7 million in 2023.

Scripps Networks including Scripps News, Court TV, and ION

The Scripps Networks segment includes major brands like Scripps News, Court TV, and ION, reaching nearly every U.S. television home. Total operating revenues for this segment amounted to $201.7 million in the third quarter of 2024, down from $215.4 million in 2023, and $619.7 million year-to-date compared to $663.1 million in 2023.

The E.W. Scripps Company (SSP) - Marketing Mix: Place

More than 60 local television stations across 40+ markets

The E.W. Scripps Company operates over 60 local television stations, covering more than 40 markets across the United States. This extensive network allows Scripps to reach a diverse audience and cater to local advertising needs effectively.

Partnerships with major national networks (ABC, NBC, CBS, FOX)

Scripps maintains strong partnerships with major national networks, including ABC, NBC, CBS, and FOX. These affiliations enable Scripps to broadcast popular national programming, enhancing its content offering and attracting a larger viewership.

Availability on cable, satellite, and over-the-air broadcasts

The company ensures its content is accessible through multiple platforms, including cable and satellite services, as well as over-the-air broadcasts. This multi-channel distribution strategy caters to various consumer preferences, maximizing audience reach.

Digital presence through websites and mobile platforms

Scripps has developed a robust digital presence, with dedicated websites and mobile platforms for its stations. This digital strategy not only enhances viewer engagement but also provides additional advertising revenue opportunities through online content delivery.

Expansion into connected television and streaming services

In 2024, Scripps is expanding its reach into connected television (CTV) and streaming services. This move is in response to the growing preference for on-demand content, allowing the company to tap into the rapidly expanding digital advertising market.

Focus on over-the-air broadcasting to reach non-pay TV homes

Scripps is placing a strong emphasis on over-the-air broadcasting to connect with non-pay TV homes. This strategy is particularly relevant as the number of households relying solely on over-the-air signals continues to rise, providing Scripps with a unique market opportunity.

In the third quarter of 2024, Scripps' total operating revenues reached $646.3 million, reflecting a 14.1% increase compared to the previous year. The Local Media segment alone generated $445.6 million in revenues, with a significant contribution from political advertising during the election cycle, which increased by $116 million in the same period.

Distribution revenues showed a slight decline of 5.7% in the third quarter, amounting to $191.8 million, although they increased by 3.9% year-to-date. This fluctuation underscores the challenges and opportunities within the distribution landscape as Scripps adapts to changing viewer habits and preferences in the media consumption space.

The E.W. Scripps Company (SSP) - Marketing Mix: Promotion

Targeted advertising campaigns for local and national clients

The E.W. Scripps Company has seen a significant increase in advertising revenues, with a reported total advertising revenue of $447.3 million for the third quarter of 2024, compared to $355.2 million in the same period in 2023, marking an increase of 25.9%. Core advertising revenues decreased by $13 million or 9.2% in the third quarter of 2024, primarily due to the displacement of core advertising by political advertising.

Political advertising promotions during election cycles

Political advertising has been a major driver of revenue for Scripps, particularly in election years. Political revenues increased by $116 million in the third quarter of 2024, amounting to $125.2 million. For the first nine months of 2024, political revenues rose by $160 million compared to previous periods.

Engagement with viewers through community-focused programming

Scripps operates over 60 local television stations, which focus on community-centric programming. This strategy has helped to enhance viewer engagement and loyalty, contributing to a 26.2% increase in local media revenues, which reached $445.6 million in the third quarter of 2024.

Use of social media and digital marketing to promote content

In 2024, Scripps has leveraged social media platforms to enhance its content distribution and audience engagement. The company reported an increase in digital revenue, reflecting its commitment to digital marketing strategies. Specific revenue figures for digital marketing initiatives are not detailed, but the overall strategy aligns with broader trends in media consumption shifting towards digital platforms.

Collaborations with retailers for antenna awareness campaigns

Collaborative campaigns with retailers have been initiated to raise awareness about antenna products, especially as consumers pivot towards over-the-air broadcasting options. These campaigns are designed to educate consumers on the benefits of antennas, contributing to the overall market awareness and sales.

Public relations efforts to enhance brand visibility and trust

Scripps has invested in public relations initiatives aimed at boosting brand visibility and trust among its audience. The company reported an increase in advertising and promotion costs by $3.6 million, indicating a strategic emphasis on enhancing its public relations efforts. These initiatives are crucial for sustaining audience engagement and building long-term trust in the brand.

The E.W. Scripps Company (SSP) - Marketing Mix: Price

Pricing strategies based on audience ratings and demographics

The E.W. Scripps Company employs pricing strategies that are closely tied to audience ratings and demographics. For the third quarter of 2024, the company reported advertising revenues of $447.3 million, a significant increase from $355.2 million in the same quarter of 2023, indicating a focus on maximizing revenue through strategic pricing aligned with audience demand. Lower ratings in key demographics negatively impacted revenues by 10% in the quarter-to-date period, highlighting the importance of demographic targeting in their pricing approach.

Revenue recognized based on contractual agreements with advertisers

Scripps recognizes advertising revenue based on contractual agreements, which are influenced by negotiated pricing with advertisers. The total operating revenues for the first nine months of 2024 reached $1.78 billion, compared to $1.68 billion for the same period in 2023. This includes political advertising revenues of $176.9 million, a substantial increase from $16.5 million in the prior year. Revenue recognition is contingent upon meeting audience guarantees, with deferred revenue recorded when audience ratings are not satisfied.

Variable pricing for political advertising reflecting demand spikes

Political advertising has been a key driver of revenue for Scripps. In the third quarter of 2024, political revenues surged to $131.4 million, compared to just $9.1 million in the same quarter of 2023. This spike reflects variable pricing strategies that capitalize on election cycles and the heightened demand for political ad placements.

Rate increases in distribution contracts with cable operators

In 2024, Scripps completed renewal negotiations on distribution agreements covering approximately 75% of their subscriber households. These renewals included rate increases averaging 11%. Distribution revenues for the first nine months of 2024 were $593.9 million, up from $571.3 million in the same period of 2023, indicating successful implementation of these rate increases.

Discounts and promotions to attract local advertisers

To attract local advertisers, Scripps has implemented various discounts and promotional strategies. These initiatives have been essential in counterbalancing declines in core advertising revenues, which decreased by $28.3 million or 6.5% in the first nine months of 2024. The company aims to enhance local advertising participation through competitive pricing and promotional offers, particularly during periods of lower demand.

Restructuring efforts aimed at cost savings and improved pricing flexibility

Scripps has undertaken restructuring efforts, incurring costs of $12.7 million in the third quarter of 2024 aimed at improving pricing flexibility and achieving cost savings. These restructuring initiatives are designed to streamline operations and enhance the company's ability to adapt pricing strategies in response to market conditions. As a result, operating income for the first nine months of 2024 was reported at $220.9 million, a significant recovery from a loss of $551.7 million in the prior year.

In summary, The E.W. Scripps Company (SSP) effectively leverages its marketing mix to enhance its competitive edge in the media landscape. With a diverse range of products including local and national advertising, digital platforms, and programming, Scripps ensures broad reach and engagement. Its strategic place across more than 60 local television stations and partnerships with major networks solidify its market presence. Through innovative promotion tactics and targeted advertising campaigns, Scripps connects with audiences and advertisers alike. Finally, the company's flexible pricing strategies adapt to market demands, ensuring sustainable revenue growth. Together, these elements position Scripps as a formidable player in the evolving media industry.

Updated on 16 Nov 2024

Resources:

1. The E.W. Scripps Company (SSP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The E.W. Scripps Company (SSP)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View The E.W. Scripps Company (SSP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.