U. S. Radio (Jan-Dec 1959)

a fair share ol iluir Ijuclgeis." What marks this effort as "special" is that RAB, wfiere faced with a iv-orieiited agency, for example, will take the radio story to the lop manageiuciit at the company. Another RAB effort that will be expanded in 1959 is one that was tried for the first time last summer. It was called "Second Look Insurance" and was aimed at convinc ing auto makers to use radio in their second wave of jjromotion after the new cars had been introduced. The initial presentation involved a threeday canvassing of Detroit firms by an RAB team. It resulted in one company asking RAB to prepare a multi-million dollar radio campaign for its ( onsitleration. And based on a retjuest from Ford, Mr. Hardesty explains, a special pocket piece (7,000 copies) has been prepared for every Ford dealer showing how radio can be used. The bureau paid for the research, an and print ing of the manual. Among the research included in the pocket piece is a sin vey of how Ford dealers listen to radio and how many sets each owns, Mr. Hardesty states. The top 15 gasoline and oil marketers are also going to hear new sales presentations by RAB in the first 60 days of 1959. Moreover, RAB in January is expected to select the department store that will take part in the bureau's "564,000 Challenge" designed to show how this type of store can successfully use radio during a full year (see Putting Radio to the Test, November 1958). In the area of sound presentations, RAB has two plans being jjrepared. The fnsl idea is to develop at RAB's exjjense a label in sound for such stores as Sears, Permy's and Wards. The second is a tape presentation that will feature talks by executives ol various companies on how they use radio, ft will be ])layed to other firms in the same industry — one businessman talking to another with virtually the same sales problems. The first one to be experimented with is the beer industry. The talks will featme executives ol Schlit/, Budweiser, Carling's Black Label and Miller. The field of spot radio i,s also expected to come uj) with an intensified sales effort to develcjp new and increasing i)usiness. The final outcome of sjjot in 1958 is not yet known. Ihrough the first nine months of the year, gross time sales are estimated by Station Representatives Association to be $136,639,000, an increase of four percent over the same 1957 period. Most of the increase was i)uilt up in the first six months of the year, with the second half showing a decline. Of what is definitely known, the third tjuarter spot radio total was .'^1^,085,000 compared with .$44,629,000 in 1957. Reports on the fourth quarter are confiicting in view of the fact that final statistics are not yet tabulated. Some reports from representatives predict another fall off in the final months, while other representatives state that business is holding tip. In 1957, total spot radio reached $169,511,000, the FCC estimates. There are new selling efforts that are under consideration by SRA to combat the problem areas that it feels spot faced in 1958: Spot Radio Revenue % Increase Over Previous Year 1954 $120,168,000 1955 $120,400,000 1.9 1956 $149,921,000 24.5 1957 $169,511,000 13.0 Source: FCC estimates. The commission's 1958 figures will not be l<nown for another year • Concentration ol spot buys in lop markets. • Double rate slructui e employed by many stations for local and national accounts. Another aiea that spot lorces are trying to improve lies in finding a way to make spot easier to buy. One solution, some feel, is centralized billing— letting the representative do the billing to the agency instead ol having many stations send in sepalate bills. One of the cliiel plairs of SR.\ for 1959, explains Lawrence Webi), managing director, is developing a new sales presentation with fresh research aimed at getting more dollars into spot. This presentation will be delivered not only to agencies but, as in the case of R.AB, to advertisers as well, Mr. Webb states. The outloc^k for spot and what it must do to reach its goal is underlined by Frank M. Headley, outgoing jjresident of SRy\ and presiderrt of H-R Representatives Inc.: "Spot radio in 1959 will have a great year-, but only il we fight to make it so," says Mr. Headley. "I think the following points must be adhered to by all of us, if we are to keep radio happy, healthy and prosperous: "Aggressive selling: Newspapers by and large are still living on tradition and past rejnttation. Let's go out and get our fair share. "Rate cutting: Organized rate cutting never did any station long range good. What a station gains in immediate billing it loses two times over in prestige and future business. "Local rates: Local rates were originally designed for retailers who cannot take advantage of a station's total coverage. Stations that succumb to national advertisers who employ various stratagems to gain an undeserved local rate are seriously nndercutting radio. "Negative selling: This is my most serious indictment of today's radio. All too many stations knock the other operation instead of selling radio's numerous advantages as the greatest sales medium. "Spot radio can have a great year in 1959," ^^r. Headley states, "but it's up to us." The outlook tor network radio in 1959, judging by statements of top network executives, should be bright. Arthur Hull Hayes, president of 28 U. S. RADIO • January 1959