U. S. Radio (Jan-Dec 1960)

'■'n' y report from ART LINKLETTER'S HOUSEPARTY To millions of listeners, the liveliest Art is Linkletter. His zany stunts, surprises and conversations with kids (who say the darndest things) make Houseparty a bright spot in the day for housewives. And as for sales, nobody livens them up like Art Linkletter. In all radio. Art Linkletter is the kind of company you keep ONLY ON CBS RADIO 51 Radio Co-op Role Observed By New Specialty Agency Radio is picking up much of the extra money being spent by national manufacturers in their expansion of cooperative advertising programs, reports Lester Krugman, president of Cooperative Advertising Specialists, New York. "Radio lends itself to co-op advertising, perhaps better than any other medium, in the respect that many local retailers can more easily adapt a comprehensive advertising program to local spot radio because of its lower cost per unit. In addition, a national advertiser can buy local adjacencies on network radio for dealers," reports Mr. Krugman. His predictions are based on recognition of the growing participation of national manufacturers in cooperative advertising programs. As an example, he cites the Bulova Watch Co. which is using co-op for the first time this fall. Co-op advertising will figine prominently in Bulova's radio expencTitures. The company retinned to the familiar Hulova time signal on radio last spring, after an 11-year hiatus. (See Hoiv McCann-Erickson Leads Three to Radio, August 1960.) These developments have been instrumental in Mr. Krugman's decision to open his new agency, which will provide a complete service for manufacturers who engage in co-op, including the creation, administration and merchandising of their programs. According to Mr. Krugman, Cooperative Advertising Specialists is the first agency to be devoted exclusively to these services. "Co-op expenditures run at the rate of about two billion dollars annually," Mr. Krugman observes. "Thousands of manufacturer-advertisers who participate in these expenditures have been forced to administer their own co-op programs because no competent service has been available to take over entire programs." "Major advertising agencies tend to stay away from their client's coop programs for two reasons," he states. "Agencies don't know enough about co-op. Furthermore, co-op advertising placed by the agency is noncommissionable because contracts are made at the local rate. In order to service their client's coop programs, agencies must bill the client an extra service charge. "In spite of its inherent abuses, co-op has become too important a marketing tool to continue to be ignored by agencies," Mr. Krugman explains. He feels that the complexities of co-op are such that few agencies have developed the knowledge and experience needed to make a major contribution to the client's program. With the move of many national advertisers to co-op programs, he notes, many agencies find themselves drawn into this program. He cites as examples Young &: Rubicam, |. Walter Thompson, BBDO and McCann-Erickson (U.S.A.) which are presently engaged in cooperative advertising programs for their clients. "Co-op is tremendous in volume and continues to grow each year," Mr. Krugman emphasizes. "Bulova Watch Company's use of co-op this fall follows in the wake of similar moves by national manufacturers of carpet, china, lawn-mowers and boat products." Mr. Krugman cites the recent return of automobile manufacturers to this practice. "In 1956, Detroit dropped all of its cooperative advertising. Their return to the use of co-op was necessitated by a decline in business, coupled with the fact that manufacturers of imported cars use co-op extensively." Formerly a vice president of National Telefilm Associates, he is also founder of Cooperative Advertising Netosletter. • • • U. S. RADIO • September 1960 n