Sponsor (Oct-Dec 1964)

Record Details:

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SFONSOH. WEEK agency pace-setters $9.5 million H. J. Heinz account and U. S. Tire, a $6 million account. The acquisition of Quaker Oats ($3 million), Drewrys ($2 million) and two watch lines of Bulova (worth $2 million) stacked the agency's ledgers even higher. Not only did DDB draw new and big accounts, but it again proved a creative leader. DDB was a runaway winner at this year's American Tv Commercials Festival, capturing 18 top awards for its clients. Other agencies that did well this year are Grey, McManus, John & Adams, Campbell-Mithun, Gardner, Carson/ Roberts, Ketchum, MacLeod & Grove. In terms of account switches, headache remedies and airhnes had the greatest effect on agency billings. Bufferin ($9 million) left Y&R for Grey; Alka-Seltzer ($11 million) changed from Wade to Jack Tinker; National Air ($4.5) from PKL to K&E; Eastern Air ($8 million) from Benton & Bowles to Y&R. Other sizeable changes included H. J. Heinz ($9.5 million) from Maxon to DDB, SSC&B, and KM&G; Nestle ($10.5 million) from McCann-Erickson to Burnett, W&L, Van Sant; U. S. Tire ($6 million) from Fletcher Richards to DDB. Pace-setting activity, as demonstrated by the top 10 agencies, spotlighted the following events. J. Walter Thompson lost Tender Leaf tea ($2.5 million in billings) to Bates and lost Continental Airlines ($2.5 million) to McCannErickson. But increased spending by growth clients like Kraft, Pan American, Scott Paper, EastmanKodak, Purolator and Quaker Oats overcame the account losses and enabled the agency to run $10 million ahead of its billings for the past year. Young & Rubicam, in terms of acounts gained and lost, held a Mexican standoff. Y&R lost Bufferin ($9 million) to Grey, but gained Eastern Air Lines ($8 million) and $1 million from FritoLay. Air billings showed better than a five percent hike over 1963's figure. Ted Bates' major additions were Wilkinson Sword and Tender Leaf tea. The agency had no major losses, recording most of its billings-increase (nearly $13 million in air expenditures) from internal growth via existing Bates accounts. BBDO retained its 1963 position as the fourth largest agency in total air billings, despite the addition of nearly $20 million in broadcast business during 1964. Increase was largely generated from within. Added to the BBDO roster of tv users this year was Lever Bros.' Lifebuoy soap and Storz Brewing. Agency resigned three accounts: A. C. Gilbert, Kinney System and Investors Diversified Service. Leo Burnett reports that total air activity in 1963 increased by nearly 15 percent. Major change was the addition of the lion's share of the estimated $10 million Nestle account, picked up from McCannErickson. Benton & Bowles' nearly $6 million increase in air billings is attributed to spending by Eastern Air Lines, a client that the agency secured last December, but lost earlier this year to Young & Rubicam. Eastern, an $8 million account, is heavily broadcast-oriented. Other strong B&B spenders in broadcast continued to be General Foods, P&G, S. C. Johnson, Texaco and Philip Morris. Latter broke out with its heaviest network tv schedule m history earlier this year. Dancer Fitzgerald Sample rose from ninth to seventh place in Sponsor's roundup of top broadcast agencies, with estimated air billings of $92 million, up from last year's $82.5 million. Increase, DFS reported, resulted mainly from greater spending by broadcast accounts, plus such client additions as DeLuxe Reading Toys and Cudahy Packing. McCann-Erickson suffered heavy account losses during 1964 with the departure of Nestle and NuSoft fabric softener. Nestle, with estimated billings of $10 million, is largely tv oriented. NuSoft's billings are approximately $2 million. On the plus side, McCann picked up Continental Airlines ($2.5 million) and a host of smaller advertisers, such as J. P. Stevens, Italian Tourist Office, United Vintners, Hilton Hotels, etc. William Esty's total billings rose over 10 percent, with air outlays up $12 million to a total of $90 million. Broadcast outlays totaled 93 percent of Esty's entire agency billings, the highest such percentage figure among the top 25 agencies. Ebb and flow of accounts at Esty was relatively static, however. Gains came from the entry of Colgate's Fab and increased expenditures by such growth accounts as Ballantine and Union Carbide. Foote, Cone & Belding added NuSoft, Booth Fisheries and the Harrmiond Organ Div., among other clients during the year. These sponsors helped to offset the loss of Imperial margarine ($3.5 million) and gave FC&B a net gain of approximately $3 million in broadcast billings. Katz Announces Design For Media Selection New York — The Katz Agency, Inc., has announced a new television sales design featuring two interrelated steps that will, according to president Eugene Katz, "bring our television sales operation into line with the advanced and demanding climate of modern media selection." Instantaneous availability information for salesmen, not only in New York but in several other Katz offices as well, will be provided via an IBM System/ 360 computer installation. In addition, Katz will create a four-team sales operation, with 50 percent more manpower, and organized in such a way that each salesman will have approximately half his current responsibility. Elaborating on the moves, Katz says, "Our main focus behind these decisions has been on sales . . . on how to broaden the flow of audience data and availability information to the buyer and speed it up at the same time." November 16, 1964 19