Broadcasting Telecasting (Oct-Dec 1963)

NETWORK RADIO SALES: $50 MILLION continued were network radio's daytime mainstay. The format has been modified annually, now includes Arthur Godfrey, Art Linkletter, Garry Moore and Durward Kirby on weekday morning, 10minute newscasts on the hour on weekdays, 63 Dimension news features a week, daily and weekend sportscasts and a number of regularly scheduled public affairs programs. Product Diversification ■ CBS Radio detects no new trend to or from program sponsorships, does see a trend already afoot toward "wider and wider product diversification in our medium." As a result of the program consolidation into about 25 hours a week of commercial time, plus about 25 weekly hours of sustaining programing, mostly public affairs, Mr. Hayes feels it has been possible to "consolidate our sales efforts around programing that network radio can do better than any other medium— fast, accurate news and timely information." He notes that CBS Radio also has consistently developed major sales presentations and traveled them "to every major market from New York to San Francisco," and in addition has been "the only network, to our knowledge, to back up our programing with a million dollars of advertising a year, aimed not only at the listener but at the trade." MBS Mutual first detected business comeback signs in late 1959, saw them materialize into an upturn in 1960, according to President Robert F. Hurleigh. He says the network came close to turning a profit in 1961, "definitely" showed a profit in 1962 and ought to do even better this year. Right now, he says, Mutual's sales are running 27% ahead of the comparable period of 1962, and billings for 1963 ought to be at least 20 to 30% higher than 1962's— 20 to 25% higher if the current pace should slacken a little, but 27 to 30% higher if they maintain or accelerate momentum. Like the other networks, Mutual tried to overcome the post-TV decline in a number of ways. One Mutual plan was a form of "guaranteed circulation" offered by the network in 1956. But the principal instrument of recovery, in President Hurleigh's opinion, emerged from the decision to strip Mutual's network programing to news, sports, public affairs and special events. This decision, reached after a year's planning, went into effect in June 1957 and involved the most far-reaching network changes inaugurated up to that time. The old concept of option time was replaced by one in which the stations agreed to clear a certain amount of network news programs in return for network-supplied music that they could use or sell as they wished. Mutual Plan ■ It was — and is — a "swap time" or "barter" arrangement. The network makes its money by selling its five-minute newscasts (17 a day, on the half-hour) and the 25-minute daily World Today wrapups. The stations clear these programs in return for 55 minutes of free programing, mostly music, out of every hour from 6 a.m. to midnight, plus an hour a day of sports, stock market, farm and other news that can be recorded and inserted in local newscasts. President Hurleigh feels that this operation was the first to apprehend and adjust to the changing radio patterns of the 1950's. Mr. Hurleigh says that Mutual — which put new, higher rates into effect on July 1 — currently has about 75 to Sexy spots on the phone A new kind of advertising, commercials by telephone, was introduced in Los Angeles last week when Paramount Pictures, distributor of the theatrical movie, "A New Kind of Love," took large space on the newspaper movie pages to invite readers to call Hollywood 9-7396 to hear commercials which the city's radio stations had refused to broadcast. "We think they may be influenced by the fact that these spots amusingly discuss (horrors!) S-E-X," the copy stated. Kabc, knx and kgbs were offered but rejected the radio spots for the picture. 80% of its commercial positions sold, which means that few premium positions are going begging. He credits the rejuvenated network radio situation to a variety of factors including a noticeably more enthusiastic attitude on the part of a number of agencies; a concern over the costs of television in the case of some advertisers; and growing awareness — through repeated demonstration — that radio can sell if it's given the chance. No Picture Needed ■ Mr. Hurleigh feels agencies and advertisers are increasingly aware that "you don't need a picture to get the picture" of the sales points of most products. A new product or a new model of an old product might benefit from being pictured, he reasons, but otherwise words or a jingle can do just as well — and much less expensively. Mr. Hurleigh can't see Mutual changing its mode of operation basically, but he does think it possible that in a few years networks will be doing more programing than now — though he doesn't know what form that programing may take. He does not, however, think it's apt to be drama. NBC RADIO William K. McDaniel, executive vice president in charge of the radio network, reports than an estimated 15% gain in sales this year will give NBC Radio its fourth straight year in the black — and its best year for as far back as the available records go, 1951. The continuing comeback, he said, traces primarily to "pioneering in the development of a service which furnishes stations programs they could not attempt locally." Essentially, on NBC that is news, Monitor, sports and special news events. Returning to the affiliates much time that used to be programed by the network has also played a part, he feels, by giving the stations ample time to establish "a unique local sound." Another factor, he feels, has been increased television costs which caused many multi-brand advertisers — as well as small advertisers who didn't feel they could afford TV — to turn to radio for additional (or full) support of each brand. He points out that NBC Radio increased its rates in April 1961, says it may raise them again next year. "Network radio," he says, "is still the most underpriced medium." May Expand ■ He also discloses that NBC Radio is considering expanding its lineup of affiliates. It now has 191 affiliates and is seriously studying approximately 30 additional markets with an eye to adding outlets there. NBC Radio's current program format evolved out of changes that started in the mid-1960's and included the weekend Monitor (and for a time a daily counterpart called Weekday, which subsequently was replaced by two hours of name-band programing called Bandstand until this, too, was dropped); the introduction of the five-minute news on the hour series in 1957 and a "hot line" system enabling the network to break into affiliates' local programing for major news reports. A substantial part of NBC Radio's sales resurgence is attributed by Mr. McDaniel to aggressive promotion of frequency of advertising via hourly news, Emphasis and Monitor, plus "intensive research to show radio's ability to round out a media schedule — particularly its ability to complement TV." Because NBC Radio has cut its commercial time by more than half — from about 72 hours a week before 1960 to about 28 weekly hours since then — Mr. McDaniel says it's difficult to compare current business with that of NBC Radio's "worst" year of 1956. But on an hour-for-hour basis he estimates it's about 350% higher now. 33 (BROADCAST ADVERTISING) BROADCASTING, October 7. 1963