Broadcasting Telecasting (Jan-Mar 1956)

BIOW SHOWS DOOR TO SCHLITZ ACCOUNTTERMS ACTION AS 'MATTER OF PRINCIPLE' Board chairman of Biow-BeirnToigo countermands $9 million agreement made several weeks ago by Toigo and brewing firm, points to competitive beer account in shop at time of arrangement. Toigo: 'I have no comment to make.' BIOW-BEIRN-TOIGO poured the $9 million Schlitz Brewing Co. account back in the bottle last week — without ever tasting it — amid growing but not officially confirmed reports that other major changes impend within the agency. Milton H. Biow, B-B-T board chairman, announced Friday that he had resigned the Schlitz account "as a matter of principle" by exercising a clause in the contract giving the agency that right. The contract was to have taken effect March 1, when the Schlitz account will leave Lennen & Newell [B»T, Jan. 2]. Mr. Biow said: "The Schlitz account was negotiated and a contract signed by a company officer, but without my knowledge or consent, at a time when this agency already was serving a competitive beer account. "As a matter of principle and regardless of billing involved. I feel I must take this action. I have therefore exercised that clause in the contract, as delivered to me, giving the agency the right of cancellation. I have so notified Schlitz." John Toigo, executive vice president, undoubtedly was the "company officer" Mr. Biow had in mind, for it was Mr. Toigo who signed GM to Be Tv Sponsor Of 'Richard III' Film GENERAL MOTORS Corp. will sponsor "Richard III" a new, three-hour British film in color on NBC-TV on March 11 at 2:305:30 p.m. EST. Signing was announced jointly Friday by Harlow H. Curtice, GM's president, and Robert W. Sarnoff, NBC's president. GM's sponsorship clears up two troublesome factors that had held up the signing of an advertiser. The three-hour time block would have been an expensive proposition in Sunday programming because of actual time costs and additional pre-emption charges. Because of these, NBC-TV temporarily shifted the feature's showing from a Sunday to a Saturday afternoon [B«T, Jan. 9]. General Motors will pick up the three hours as a substitute for its Wide Wide World program, normally scheduled on that date in the 4-5:30 p.m. EST' period. Pre-empted will be only one hour — Dr. Spock, sponsored by Beechnut Packing Co., 3-3:30 p.m., and Zoo Parade, sponsored by Mutual of Omaha and American Chicle Co., 3:30-4 p.m. The other half-hour currently is sustaining. The Wide Wide World series is regularly sponsored by GM for its following divisions: United Motors, Delco-Remy, Guide Lamp, A. C. Spark Plug and Pontiac. The NBC-General Motors announcement said that the film will be shown theatrically in U. S. theatres throughout the country on March 12, the day after . the telecast. The film stars Laurence Olivier in the title role, and John Gielgud, Ralph Richardson, Cedric Hardwicke, Claire Bloom and Pamela Brown. It was pro the contract with the Schlitz people for the $9 million advertising budget. Mr. Biow's reference to the Schlitz contract having been signed "without my knowledge or consent" lent credence to widely circulated reports of a coolness between him and Mr. Toigo which probably will lead to Mr. Toigo's departure from the agency. Mr. Toigo refused to speak to reporters seeking to check his future plans, instead having his secretary relay word that "I have no comment to make." The competitive beer account Mr. Biow mentioned in his statement is the Jacob Ruppert (Knickerbocker beer) account, which reportedly was notified by the agency to end its contract at the same time the Schlitz account was to move in. Ruppert's advertising budget is approximately $2.5 million. The Ruppert company will hear agency presentations in New York this week from approximately six advertising agencies and is expected to decide on an agency sometime within the next 10 days. Meanwhile, reports were denied that several other accounts — specifically Procter & Gamble and Hudson Pulp & Paper Co. — would be leaving Biow-Beirn-Toigo. A spokesman for Procter & Gamble, Cincinnati, told B«T "that Procter & Gamble is not leaving Biow-Beirn-Toigo." Herb Shayne, advertising and sales promotion manager of Hudson Pulp & Paper Co., told B»T that "the rumors that we have left Biow-BeirnToigo are incorrect. We recognize the fact that there are changes going on within the agency but we would like to stay if the caliber of service is maintained at a high level." duced by Olivier in association with Alexander Korda and is being shown theatrically in Britain. Mr. Sarnoff said that the film "is breaking all records in London, was hailed by England's Manchester Guardian as a 'superb and bold achievement.' It is something of a cinematographic miracle." NBC, it was understood, had agreed a few months ago to pay $500,000 for tv rights to the film and reportedly will receive a maximum of $40,000 as its share in theatrical receipts which accrue to the film's producers once the film is released to U. S. movie houses. It will be the second such venture for NBCTV, although this one will be on a greater scale. Last November, the network programmed "The Constant Husband," also a British film and a Korda product. Agency Tells Advertisers To Look Again at Radio' ADVERTISERS were urged last week by a New York advertising agency to "look again" at radio. In its latest "What's New" bulletin sent to its clients, Hilton & Riggio urged the new evaluation of radio in reporting on a two-week study by the agency of all media. That survey, according to H&R, found the overall cost of advertising increasing 5% this year and tv's cost alone rising 12%. Under the heading, "Radio Represents an Opportunity in 1956," the agency said that "during the past several weeks many H&R clients have been planning their 1956 programs and, in conjunction with this, we have been re-evaluating media. The findings are provocative. "The overall cost of advertising for 1956 will increase 5% with television showing a cost increase of 12%. Radio costs have tumbled and are continuing a downward trend, so if an advertiser is looking for a bargain, radio may well be the answer. "Comparative costs in terms of Number-ofHomes-Reached-per-Dollar show radio at 575, television 356, magazines 277, newspapers 211. In line with the changed pattern of radio listening from a family to a personal affair, the new pattern of Vz and XA sponsors has evolved to sell spot announcements to customers all around the clock. Parallelling the cut in time charges, radio networks have cut talent and production charges to the bone. "Advertisers aware of cost and coverage may do well to look again at radio." BLATZ, GE CHANGE MOVES $4 MILLION TWO ACCOUNTS, totalling nearly $4 million, are shifting agencies: General Electric television sets has named Young & Rubicam, effective June 1, and Blatz Brewing has appointed Kenyon & Eckhardt, effective immediately. Both accounts are spot television users. General Electric will move its $3 million dollar advertising budget for tv sets from Maxon Inc., to Young & Rubicam, which already serves as GE's agency for major appliances. Maxon, which has been doing the advertising on GE sets for the past 10 years, will continue to handle GE radio sets and the Hotpoint division of General Electric. Blatz Brewing Co., with a budget of approximately $1 million, had been inherited from William Weintraub Agency by Norman Craig & Kummel when a reorganization took place a year ago. Blatz had been with the Weintraub agency since September 1950. White, Chase Head M-E Unit McCANN-ERICKSON, New York, has integrated its public relations and publicity services into Communications Counselors Inc., a newly formed affiliated company, it was an MR. WHITE MR. CHASE nounced last week by Marion Harper Jr., president [Closed Circuit, Jan. 16]. The company's officers are Frank White, chairman of the board; W. Howard Chase, president; Edward F. Baumer and Murray Martin, vice presidents. 260 Take Nielsen Survey A. C. NIELSEN CO., Chicago, Thursday announced a total of 260 am and tv stations have subscribed to Coverage Service Survey No. 2 in the first four weeks of its availability. CBS-TV a fortnight ago became the first network to order the forthcoming study [B»T, Jan. 16]. Page 34 • January 23, 1956 Broadcasting • Telecasting