U. S. Radio (Jan-Dec 1960)

composed of Jack Thompson, Bob Somerville, Don Frost and Mr. Teter. It is constantly re-evaluating the cards of the PGW stations, recognizing that no answer is the final answer and that situations are constantly changing. Just recently, the committee standardized the continuing discount terminology for all rate cards. In addition, the last two categories in the number of weeks discount were formerly broken down as follows: 26 to 38 weeks and 39 to 52 weeks. The committee felt there was too big a gap between 39 and 52 and that this did not give an advertiser a large enough incentive to come in for 52 weeks. The categories were changed to this: 26 to 51 weeks and 52 weeks. This provides the maximum incentive for a year-around advertiser. 'Not in a Vacuum' The Katz Agency Inc. continually screens its station rate cards in an effort to simplify the structure and format as much as is possible. Dan Denenholz, vice-president for research and promotion, declares, however, that although simplification and standardization are ideals always being aimed at, there are localized situations and problems which are responsible for necessary variations. "Rate cards are not created in a Tacuum," he states. "They are formed within the context of specific situations." Among the rate card features in which Mr. Denenholz observes a trend towards standardization are the listing of announcement rates ahead of programs and the consolidation of time brackets into three classifications (traffic times, daytime and nighttime) . He suggests there are four major considerations that determine the individuality of station rate cards. The first is the competitive position of a station where the rate structure must meet the competition. Secondly, where there is one card for both local and national advertisers, some rates, though available to the national advertiser, may be designed primarily to accommodate the local advertiser. Thirdly, there is the matter of programming, which bears on such things as the definition of time THE INTEREST OF AGENCIES In radio rate cards has been growing. Here, William Es+y Co. media buyers Hal Simpson (I.) and Jack Fennell meet with the radio rate card committee of Peters, Griffin, Woodward Inc., New York. Committee members are (I. to r.): Robert Teter, vice president-director of radio; Don Frost; Jack Thompson, vice president-radio sales manager, and Robert Somerville. All but three of PGW's 35 stations are using a similar card. brackets and special feature rates. And fourthly, Mr. Denenholz points to management philosophy, which involves such important considerations as the balance to be achieved between local, regional and national accounts. Mr. Denenholz cautions that the theory of the complexity of rate cards inhibiting radio's ability to obtain more business may be an oversimplification. "We must remember that the beauty of spot radio is the ability to capitalize on the wide range of localized differences. This diversity in markets, stations and localized situations underlies the seeming variations in rate card structures and policies. The rates themselves are more important than the rate card." Edward Petry & Co., mindful of the differences in station situations, has made a recent push to simplify its station cards to as great an extent as possible. It recently put together a new rate card looseleaf portfolio for its salesmen containing simplified and standardized versions of cards Avherever possible. As mentioned earlier, about 15 of the firm's 25 stations are using a newer type card in which fixed announcements are listed first, announcement plans (Impact Plans) are second and programming rates are third. The efforts of the Petry organization, according to William Steese, promotion manager, are aimed at simplifying the appearance of the card, standardizing and clarifying the terminology wherever possible and offering an incentive for an advertiser "to run longer and bigger." The latter point is of paramount importance, declares Mr. Steese. "Under the old-type frequency discount cards, there was no consideration for longevity; no incentive for staying." The newer cards have tw^ coordinates: The number of announcements per week are arranged vertically and the number of weeks per year are grouped horizontally. The weekly cost and the unit cost are also mentioned. Under the Impact Plan, an advertiser's schedule is rotated. Under a class \A buy, for example, announcements are rotated from 6-9 a.m. to 4-7 p.m. The Petry station card also is designed to provide maximum encouragement for consecutive week buying. For example, an advertiser who is on for four weeks, out for one and comes back for another four will earn an eight-week discount for the last four weeks. (Cont'd on p. 46) U. S. RADIO August 1960 27