Broadcasting (Oct - Dec 1949)

Ad Budget (Continued from page 25) percentage of all American homes than any competitive mass medium. Our 94% radio ownership far sui-passes the readership figures for daily newspapers or magazines." Speaking for NBC alone, he said the time spent listening daily to broadcasts by the network and its affiliates nearly equalled the total hours spent reading all newspapers and magazines combined. On the radio theme, William C. Gittinger, vice president in charge of sales, CBS, repeated the message he delivered the week before to the Eastern Annual Conference of American Assn. of Advertising Agencies [Broadcasting, Oct. 10]. He expressed the belief that radio will grow, but that if television does finally affect its growth, such impairment will be gradual. On the subject of whether television has reached the pay-off point, slightly varying views were expressed by George L. Moskovics, manager of television sales development, CBS, and Sylvester L. (Pat) Weaver Jr., vice president in charge of television, NBC. Mr. Weaver unqualifiedly said that video has reached the pay-off point for advertisers, while Mr. Moskovics said that it has for some, but not all advertisers. Mr. Moskovics, however, reported on several TV ' success stories. Disney Hats upped sales 38% in New York as the result of one campaign, he said. Chesterfield and Lipton's Tea report viewers of their TV programs use their brands more than others. Cites Figures As further evidence video is reaching the payoff point, Mr. Moskovics cited these figures: In June 1948, 234 advertisers in 11 markets used 20 stations, an average of 12 advertisers per station; in May 1949 there were 1,343 advertisers in 34 markets using 59 stations, an average of 23 advertisers per station. CBS itself had four network accounts using two hours and 15 minutes weekly a year ago, but today has 33 advertisers using 18 hours, he said. Mr. Weaver, backing his thesis that TV advertising pays, contended that an advertiser gets a better buy at comparable cost per television home than per ad read in a magazine. He also declared that television competes with all media except radio, with which it is complementary. Radio and television together can deliver 95% of all homes in the country to an advertiser's message, he said. Robert S. Peare, vice president and advertising head of General Electric Co., believed that television has reached the pay-off point for many local advertisers or advertisers seeking urban customers. For a long time to come, however, he believed that a national advertiser will need to use both radio and TV to get sufficient coverage. Mr. Walbridge WWJ CHANGES Four Staffers Are Promoted HARRY BANNISTER, general manager of WWJ-AM-FM-TV Detroit, announced a series of promotions in that organization last week, to be effective immediately. Willard Walbridge, general sales manager, will add the title and duties of assistant general manager to Mr. Bannister, but will ret9,in superv^ision of the sales staff. Two WWJ-TV salesmen moved up in the new changes. Norman Hawkins will be assistant sales manager of WWJ, and Robert Schlinkert will be assistant sales manager of WWJ-TV. In another change, Mabel Munroe will be office manager, taking over many of the duties of the late Harold Priestley [Broadcasting, Oct. 10]. He believed that the station operator was paying a larger portion of the cost of developing television than are advertisers. In the long run, however, he believed that what would be profitable for the advertiser would ultimately bring profit to the station. In the discussion on "Audience Trends— AM and TV," Thomas H. Brown Jr., vice president of C. E. Hooper Inc., said radios claims to continued leadership in advertising were substantiated by the firm's findings. During top TV evening programming, radio was able to hold 88.5% of the broadcast audience nationally even in August, radio's traditionally low-level listenership period, he said. Although ratings for radio's half-hour evening sponsored programs was off .33 in mid-winter 1949 over the same period of 1948 that was more than offset by the increase in homes able to listen, he said. In the discussion on the FCC giveaway order, I. W. Digges, ANA counsel, gave the opinion that there is no reason for an advertiser to change present plans on giveaway shows in view of the present status of court actions challenging the legality of the rules. He believed only the first of the FCC's four rules set forth a lottery. That rule required the winner to give a box top or something of value. Among other matters considered : Elections — W. B. Potter, director advertising operations, Eastman Kodak Co., Rochester, named chairman of board, succeeding William N. Connolly, advertising director S. C. Johnson & Son. Albert B. Brown, vice president in charge of advertising for Best Foods Inc., New York, named vice chairman. Paul B. West, who has served as president since 1932, reelected. New board members: Howard M. Chapin, advertising director. General Foods Inc., New York; William M. Stedman, director of advertising, American Home Products Corp., New York, and L. Rohe Walter, director of public relations. The Flintkote Co., New York. Re-elected to the board: George A. Percy, advertising manager, Bauer & Black Division, The Kendall Co., Chicago. Cancellations — John E. Wiley, chairman of the board. Fuller & Smith & Ross Inc., reported space and time cancellations started in earnest this year and will be an annual experience from now on. Cancellation is in effect a "no confidence" vote in the advertising manager. His advice to the advertising manager: Build your plans around an "action-getting gimmick." Budgeting — Top management often budgets advertising by historical rule-of-thumb basis with or without consent of advertising management, after which advertising management has the problem of deciding how to divide up its fiscal pie, said G. Rowland Collins, dean, Graduate School of Business Administration, New York U. Such procedure is "upside down," he contended, lacking flexibility and attention to individual needs. Alert managements are planning to earmark larger shares of retained earnings for market expansion and product innovation, bearing in mind that plan capacity has doubled in a decade with no corresponding increase in spending for distribution. He recommended setting up a "funded reserve for product development and promotion," a device which he believed would legally aid a company's tax problems as well as its future. Economic System Campaign — More than $3 million in time and space have been contributed to the American economic system campaign of The Advertising Council, said its coordinator, Robert M. Gray, advertising and sales promotion manager, Esso Standard Oil Co. Foundation of the campaign was set up by a joint ANAAAAA committee. Mr. Gray reported radio gave the campaign more than two billion listener impressions and that one message on Mi'. District Attorney program pulled 13,000 requests for the campaign's booklet, The Miracle of America. Poll — At "open stockholders meeting" of The Advertising Council, results of three-day balloting during ANA meetings revealed that "the high cost of government" was considered by ANA members the most vital non-political problem facing America. Some other problems, listed according to vote: Labor-management relations ; threat of socialism; strengthening the United Nations; the threat of Communism; moral and spiritual revival; stabilizing our economy; post-war conditions in our schools. We're Not . . >But We Could Be Starry-Eyed About The Radio lob We're Doing/Cause. . . During the past 23 years "A: we've won lots of friends •k earned some heavy prestige * enjoyed a wide social acceptance if and we've done a good selling job for our advertisers, too! All because we know how to program ...and have the enthusiasm and interest to follow through in detail. For complete data on WIOD, call our Rep... George P. Hollinghery Co. James M. LeGate, General Manager 5,000 WATTS • 610 KC • BROADCASTING • Telecasting October 17, 1949 • Page 59