Sponsor (Apr-June 1959)

lllllll!lllllllllllll!!ll!lli:illllll'!li:!lll!llllllll!IIIW HOW ONE NATIONAL AD AGENCY MAKES THE CO-OP SYSTEM WORK The following report is condensed from Cooperative Advertising Newsletter, a monthly publication of J. Wendell Sether Assoc. & American Press Magazine, IS. 1. The agency is Keyes, Madden & Jones, Chicago (formerly Rnssell M. Seeds Co.) which is a co-op pioneer. Keyes, Madden & Jones is one of the few national agencies which maintains a complete co-op department; it has been handling co-op programs for clients for over five years. Its co-op billing is currently close to $1.5 million for such accounts as Pinex, Sheaffer Pen, Weco Products. Revenue is based on client share of co-op billing, so agene) receives 15', of the billing. KMJ renders complete service, including administrative, creative and merchandising functions, frequently sets up the whole co-op plan together with budgets, geographical allocation of funds, agreements with retailers. Administration of fund is handled by KMJ's clerical section of the co-op department. This department handles all claims, checks ads, rates, accruals. ( In 1957, about 2,000 claims were questioned or refused. The department also handles all correspondence. The creative function rests with the creative section of the KMJ co-op department, manned by specialists in retail advertising. They prepare all material for the co-op program — radio and tv scripts, newspaper mats. On request, they will prepare special copy including live tv commercials. Merchandising includes all the usual marketing techniques — research, sales analyses, copy testing, information on upcoming co-op programs. Their ever) effort is in the direction of tying the local co-op campaign as closely as possible to the national ad program. This department also conducts clinics for client sales executives, teaching them how to present total ad campaigns ;it the local level. Patricia Bud a head this department under Fred Willson. Says Willson, "Co-op advertising tnusl not be divorced from the over-all promotion effort. It nausl be handled l>\ ad expert il it is to be most productive." i! Illl niiiuiiniiii mini Logical hump il must cross to gel itsfull share of co-op dollars is the barrier of "proof of performance. " In last week's installment. SPONSOR listed some of the means by which national manufacturers are defrauded by retailers with the help of print media (which offers the "ultimate" in performance proof — tear sheets I . That air media cant even offer tear sheets makes them all the more suspect in the eyes of national accounts. As one adman told SPONSOR, "Manufacturers with co-op plans expect to be taken for a ride; the only thing thev fear is that the cost of the ride for air media has a much bigger mark-up." He pointed out one case where a local retailer bought for S3. 500 i at local rate) time on a station which was then sold to three national manufacturers for $20.000 — a quick turnover in profit of about $16,500. The mark-up. however, disturbs the national account not nearly so much as the possibility that the announcement was never aired at all. And in the case of local tv shows, he is often plagued by the thought that he has paid for I in addition to time charges) the production of a program which has never been shown. How can air media furnish better evidence that co-op funds actually have gone into advertising? "'If stations ever get some sort of uniformity in rates." says Lester Krugman. NTA's vice president in charge of advertising, "it will go a long way toward influencing more national accounts into including air media in their co-op plans. But ahead of rates, there is proof of performance." (A number of quotes from Krugman were carried in last weeks installment. Krugman is a co-op advertising authorit) from way hack, was an executive in department stores, vice president of The Getschal Co., a marketing vice president for Emerson Radio, and a member of the co-op committee ol \\ \ i . "After the\ hurdle the proof-ofperformance obstacle, air media can wen i \ about rates." Krugman sa\s. Indeed, he recommends that TvB and I! Ml -it down with \N \ and work out an acceptable means of convincing advertisers of air media's honesty. Station people, he believes are a prett) saw) lot, "if stimulated on the scope of co-op advertising, they could ciime up with s I answers. SPONSOR 27 .n m: 1959