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-TELEVISION DIGEST
MABCH 18, 1963
spectacular evidence suggesting fraud & misrepresentation, Harris asked: "Do you think there should be legislative action?" Let responsible people in industry do the job, Seiler replied. Harris retorted: It's obvious there are "irresponsible people" in the business, too.
More than half dozen rating services heads were heard from. Testimony of major witnesses this week — Dr. Sydney Roslow, Pulse dir., and Henry Rohmel, Nielsen exec, vp & media research div. mgr. — will hove great bearing on direction committee action will take because of their impK>rtance in field.
Knowledge acquired by staff investigators Robert Richardson & Rex Sparger surprised measurement firms. (Official of a major rating firm told us he wouldn't mind having one of them as research dir.)
Unsatisfied with vague responses of Robert E. West, pres, of Robert S. Conlon Assoc., committee requested appearance of his partner, Mrs. Hallie Jones, who flew in from Kansas City hq.
Committee said that after 1 V2 years of study it still can't determine if any field work was done in half Conlon's published surveys. Conlon stated it made more than 250 surveys in 1960, ostensibly in more radio markets than any other firm, at field cost of $5,618. It's understood Conlon reported that it grossed more than $100,000 that year.
Telephone interviewers listed by Conlon couldn't be verified for specified surveys. One woman alleged to have conducted Tampa siurvey, investigators said, had moved from address given 2 years earlier, had married, could only recall doing survey years ago in Altoona. Another "interviewer" was in traction when she was supposed to be surveying, committee charged. Mrs. Jones said records could be incomplete because many payments are made by cash through mail. Rep. Rogers (D-Fla.) wondered if Internal Revenue had checked cosh receipts. She said no.
"Several radio stations should give attention to these facts," Harris concluded, "It isn't a very good picture."
Allan Jay, pres, of Videodex Inc., N.Y. & Chicago, also had difficulty responding to questions. There were contradictions between Jay's testimony and findings by investigators.
Sparger took stand to report: That Merchandise Mart post office box received no TV panel diaries; that Jay first told investigators Videodex had notional sample of 9,200, but now says he hasn't had national sample for years; that aUeged Joliet, El., field plant wasn't there; that 7 premium houses, which mailed out diaries with "incentives," were not premium houses, had mailed no Videodex diaries, and some were even out of business.
Company stated 85% of its work was analyzing spot schedules for advertisers. Jay said much of confusion was that his firm was in process of moving from Chicago to N.Y. for "several years."
Questioning of ARB centered aroxmd the difference between metro area ratings and total area viewing by homes. Committee also wondered about heavy rotings-week promotions. Harris called metro areas "trumped up," "artificial." Seiler explained that in a 3-stotion market, for example, ARB couldn't use the areas claimed by all 3 stations.
Seiler also showed variations in ratings. Programs with ratings of 22 & 26 in one LouisviEe repx>rt could vary from 15.2 to 28.8, latter from 19-33. He said he advises cEents to see a rating twice in a row before making decision, but conceded there is great misuse of ratings. He disclosed that ARB's 1962 gross was more than $3 million, most of it in local station diary repx>rts.
Frank Stisser, pres, of C. E. Hooper, conceded that ratings ore "overused" most of the time — "not good for us and not good for the industry." He said that Hooper measiires only city zone radio listening, that figures aren't projectible, that they're intended only as management guide.
Hooper uses a code of practice, has suspended stations for misleading advertising of ratings. However, Richardson said, Tucson station used coE letters and ratings of oE stations in promotion — violating Hooper code — but there was no evidence of suspension.
Trendex Pres. Ed Hynes was accused by Committee as stating in his brochure that his company would supply rating stations wanted. Committee also foimd that in one case Trendex had sample size of 6 that was distributed over 8 stations.