Broadcasting (Oct - Dec 1950)

ANA Muffles Rate Cut (Continued from page 26) newspapers, premised upon increased operating costs, rather than the traditional circulation increase factor, were taken into account. Several speakers noted that TV has hit the printed media too, and that it is having an effect on all advertising fronts. One ANA member, a substantial radio and TV user, said that rate cuts in any medium seldom occur until a year or two after the "agitation" has started. He thought nothing would come of the original ANA project, which sought to justify 14.9% rate cuts for Class A time on NBC and CBS, and which cited cuts as deep as 55% in evening rates in certain markets where TV competition is most rigorous. Increased tune-in on radio resulting from the war emergency, as well as increased operating overhead and the force of statistical facts developed since the ANA committee onslaught last July, have converged to bring about virtual abandonment of the campaign at this time, it was indicated. Backs Ad Council' Stuart Peabody of the Borden Co., and a prime mover in the Advertising Council, urged advertisers to refer to the Council all requests for space and time from public service organizations. He said duplicate requests thereby are screened and unworthy causes eliminated. He praised the Ad Council's work on all fronts. Bernard C. (Ben) Duffy, president of BBDO, noted while speaking at the opening session Monday morning that the problem of media costs is "most important" because 85% of advertising is concerned with media, 15% with production. "Media problems are infinitely more complex because of the advent of radio and television," Mr. Duffy claimed. Indirectly, video has made the media picture more costly and complex, he charged, explaining that the cost of each medium influences all the others. Referring to the television freeze, Mr. Duffy said the FCC "has done the publications business and advertising in general a great disservice, creating a monopoly in one-station markets and keeping shows from the public." Pointing out that 39% of the TV stations now in operation are in single-station areas, Mr. Duffy said the result is that stations cannot fill demands for time and TV costs are "out of line." 'Artificial Time Costs' Such creation of "artifical time costs" has an ultimate effect of "loss" to other groups — station owners, manufacturers, dealers, advertising and the public. Advertising will "have to decide if the results justify paying out-of-line costs." BBDO's president noted that the present sales impact effected by video is also "out of line," because the medium hasn't settled down to a normal level, as have other media. "After the new toy stage, television will enter a competitive period, and will then have to be re-evaluated." Mr. Duffy advocated adoption of a single standard of acceptable measurement for circulation, concluding that there is a "limited amount of information available" on which to base opinions. "Even though it is hard to get the facts, we can't speculate^" he said. His solution — cooperative research, combining efforts of agency, advertiser and media owners. "Advertisers should adopt a 'show-me' attitude, in their need for more factual justification for advertising procedure," he said. Dr. Claude Robinson, president of Opinion Research Corp., reviewed four primary conclusions he has reached in impact studies. Explaining "How people are reacting to your advertising," he defined impact as a measure of the depth of impression which an advertisement makes on the mind of a person. Dr. Robinson said his study was devised to show: (1) ALBERT BROWN, vice president, Besf Foods Inc., and new ANA chairman, presided at the Wednesday morning forum which had as its theme "Making Our Advertising and Public Relations Work at Maximum Effectiveness;" registration of the advertiser's name, (2) of his message, and (3) acceptance of the advertiser's sales points or arguments. His conclusions as to audience behavior: (1) people are mentally lazy, and will not work to get an advertising message; (2) people are literal-minded, and will not take "flights of fancy" frequently required by advertisers; (3) advertisers must "never assume that people have very much knowledge about their particular product or institution;" (4) "people are more interested in their problems than those of others, and the 'you' principle is violated times without number in advertising." Dr. Robinson expects the precedent of heavy institutional advertising campaigns to be followed again "in the current period of military emergency." His points on impact were designed to apply to product as well as to institutional advertising, "because both obey the general principles, although one sells ideas and the other sells goods." The same responsibility by communications is seen by C. D. Jackson, publisher of Fortune magazine, who outlined its major challenge. Giving a progress report to the ANA on the September feature in Fortune, "Is Anybody Listening," Mr. Jackson termed the challenge one of presenting "our kind of a world so visibly and unquestionably better than any other world at all levels, that we create cracks in the Communist empire." He said, "We must show and explain, as well as produce and sell." Citing a need for an "atmosphere of knowledge, understanding, and, most of all, respect," Mr. Jackson said, "We stand a chance of losing our nation unless we do a better job of getting this atmosphere." His suggestions: (1) create this atmosphere and eliminate the usual "I want to be loved" theme; (2) have business admit its failures ("I have yet to see business convey any impression that what it has done up to now is anything less than 100% perfect"), and (3) convey the right kind of information in advertisements, thereby taking the curse off the phrase, "free enterprise advertising." Jackson Cites Voice Referring to government, as well as private, communications, Mr. Jackson said the Voice of America "has a better chance of doing a job than ever before." Bennett S. Chappie Jr., assistant vice president in charge of sales for U. S. Steel Corp. of Delaware, was another Monday speaker, asking delegates: "Has the current situation changed your advertising plans and how?" A Tuesday morning panel on establishment of an effective client-agency relationship featured Fairfax M. Cone, board chairman of Foote, Cone and Belding, outlining "How I would go about soliciting an account if I were an agency," and Harry J. Deines, general advertising manager, Westinghouse Electric Corp., "How I would solicit an account if (Continued on page 3 A) AGENCY-sponsor get together at the ANA meeting includes (I to r): Jeff Wade and Walter Wade, radio director and executive vice president, respectively. Wade Advertising, Chicago; James Witherell, research director, Russel M. Seeds Co., Chicago; William S. Cutchins, advertising manager. Brown & Williamson Tobacco Co., and Les Waddington, radio and television director. Miles Labs. Page 32 • October 2, 1950 AT the ANA board reception Tuesday are (I to r): Andy Quale and Hugh Conklin, General Foods; D. H. O'Dell, assistant advertising director. General Motors; Hank Voile, advertising manager, A. E. Staley Mfg. Co.; Gerhard Exo, General Foods; William Brooks Smith, advertising director, Thomas J. Lipton, and chairman of the ANA Radio and Television Steering Committee. BROADCASTING • • Telecasting