U. S. Radio (Jan-Dec 1960)

cy executives were asked what recommendations they had to simplify the buying of spot radio, an overwhchiiing response pointed to the simplification of rate cards and the perhaps Utopian desire to make all cards uniform and standardized. Most agency criticism of rate cards revolves around these elements: Too many time classifications, too many variations on package plans, excessive number of additional charges and the use of the term "rates on lequesl." Among the features that agencies appear to want included in nil rate card structures are these: Clear definition of time classifications, fre(|uency and package plans, and having all provisions pertaining to various discoimts spelled out clearly and imderstandably. In line with this, the radio industry might also add a few of its own desirable qualities, such as devising rate structures to encourage all day use and longer buys. Illustrating the interest of agencies in the problem, the A.AAA has issued a standard form for radio rate { ards that was developed by its committee on broadcast media. It is the intention of the A.\A.\ that the model format "will facilitate the preparation of rate cards by the broadcast media, help assure completeness of wanted information and minimize errors and expedite the announcement of rate and data changes." 1 1 Sections The AAAA, which urges broadcasters to adopt the recommended format, arranges the card in 1 1 seclions: (1) Names and titles of key station personnel; (2) representati\e: (3) mailing instructions and closing times; (4) facilities; (5) commission and cash discount; (6) rate policies; (7) rates for annoimcements; (8) rates for package plans; (9) rates for participating programs; (10) rates for programs, and (11) general provisions (contract requirements and commercial acceptance, among other things). All provisions and qualifications of the rate card, the AAAA urges, should be spelled out clearly and conspicuously, such as the hours for the different time classifications and when bills should be made payable. Representative Drives The radio industry, as seen through the offices of the national representatives, has been making efforts of its own to simplify presentation of station rate cards. An example of a major effort to eradicate awkward cards is the threeyear-old program by Peters, Griffin, Woodward Inc. All but three of its 35 stations are on a similarly-formatted card that arranges the number of announcements per loeek vertically and the number of xveeks horizontally. Other representatives, recognizing the difficulty in trying to deal with the individual rate card problems of the many stations they represent, are similarly striving for simplicity and some degree of uniformity. Edward Petry &: Co. has just arranged its station rate cards in a new salesmen's portfolio. Of the 25 stations it represents, about 15 are using a newer, simplified rate card format; many rate card features common to most stations have been standardized for as many stations as possible. The Katz Agency Inc. has maintained a long-standing effort to simplify its station cards, but cautions that standardization and uniformity are not easily attainable goals for a medium that is characteristically local. John Blair X; Co. revamped and simplified its cards three years ago. The card is built around the concept of saturation weekly packages that start with a minimum of 12 announcements a week. NBC Spot Sales believes that today's rate cards should make maximum provisions for short-term saturation schedules. The firm also thinks that the concept of fixed position announcements is on its way out. H-R Representatives Inc. has been recommending a new rate card format for its stations that was devised about a year ago. A basic feature of the card is the Total Audience Plan which encourages use of the whole broadcast day, including nighttime. Adam Young Inc. has been using a simplified card for its stations for about three years. The card emphasizes high frequency weekly schedules. A feature of the plan is designed to bring about greater use of daytime hours. The seven-owned stations of CBS, represented by CBS Radio Spot Sales, have been using a simplified format that was put into use in December 1957. The card has standardized the time brackets. There are three sections — station time; fixed position and run-of-schedule announcements and participations, and special features. The special rate card committee of PGW that was set up three years ago was concerned with both the rates themselves and the rate card format. The upshot of the study, as explained by Robert Teter, vice president for radio, was the determination that "the essential two qualities of a card were the number of announcements per week and the number of weeks per year." The new card was arranged using: these two coordinates as the basis. All discounts and package plans are figured into this structure. "The objective of the change," states Mr. Teter, "was to simplify the structure of the rate card as a service to agencies. It was one way of making radio easier to buy. There are also certain subsidiary advantages of the new card. Better Sales Tool "It is a better sales tool for a station and representative. Consequently, a salesman can spend more time discussing— and the agencymore time evaluating — the qualitative aspects of a station." As Mr. Teter sees it, the chief abuses of the "older" card are theendless package plans, the confusing frequency discounts and the incomplete cards that all too often use the term "rates on request." The PGW rate card committee is 26 U. S. RADIO • August I960