U. S. Radio (Jan-Dec 1960)

report from Katz Report Traces National Spot Radio Costs In 1959 Rates for national spot radio in 1959 showed very little change when compared with the previous year's time charges, according to the third annual "spot radio budget estimator" prepared by The Katz Agency Inc. Costs in the 150 markets included in the estimator were up 1.5 percent for daytime hours. The early morning-late afternoon "traffic" period showed a rise in time charges of only 0.8 percent. Evening rates declined 1.3 percent in 1959, as compared to a 6.4 percent drop in 1958. Based on the cost of 60-second announcements in 150 markets, the spot radio budget estimator is not designed to "take the place of individual station rate cards," the firm states. Its purpose is to provide a quick method of estimating spot radio costs. The markets included in the estimator are ranked in order of the largest daytime weekly circulation in each market, it is explained. NCS #2, as furnished in a special tabulation made for The Katz Agency by the A. C. Nielsen Co., is used as the base. "Since the rates tabulated are those of the station in each market with the largest daytime weekly circulation, they tend to reflect, in most cases, the highest cost station." The summarv shows for each of the 150 markets the cost-per-announcement, based on a weekday schedule of 12 one-minute announcements per week, for 13 weeks in each of the following time periods: • Early Morning-Late Afternoon. This refers to 7 a.m. to 9 a.m. and 4 p.m. to 6 p.m. The two periods were averaged where the late afternoon and early morning rates differed. • Daytime. Refers to the rate in effect for the most hours between 9 a.m. and 4 p.m. • Evening. Refers to the rate in effect for the most hours between 6 p.m. and 11 p.m. Supplementing the summary of spot costs, the estimator also includes a formula for estimating the cost of 12 or 24 announcements per week for four different cycles. According to the firm, "The formula was derived from a complete tabulation of the rates of the stations (used in the summary) in the top 50 markets. Test tabulations indicated that the relationship of specified rates to each other among the top 50 markets was essentially the same as that among all 150 markets." Included in the formula (below) is data for estimating cost of 12 or 24 announcements per week for cycles of 13, 26, 39 and 52 weeks. • • • Spot Radio Estimating Formula Based on One-Mlnufe Announcement Rates 100% = Daytime Open Rate COST PER ANNOUNCEMENT Daytime* Early teaming i Late Afternoon* \ Evening* 1 Open Rate 100% 1 1 1 % 85% 12 anncH. per week 13 weeks 26 weeks 39 weeks 52 weeks 74% 70 69 67 86% 81 80 78 63% 59 59 57 24 annc+s. per week 13 weeks 63% 61 60 59 75% 72 71 69 53% 52 51 50 26 weeks 39 weeks 52 weeks la musique continental with that soothing ingredient RADIO REFINED 7:30 am 10:30 am I 3 pm WBAP 570 Fort Worth -Dallas 3900 Barnett, Fort Worth See PETERS, GRIFFIN, WOODWARD HELP LAUNCH HOPE OFFICIAL UNITED STATES N»V» fnOTOORi^H Help this ship share our medical knowledge— make friends for America. Mail your dollar (more if you can) to HOPE, Box 9808, Washington 15, D. C. U. S. RADIO February 1960 53