Broadcasting Telecasting (Jan-Mar 1956)

PRESTIGE SEEN AS PROFIT IN COLOR TV ADVERTISING Twenty different advertisers now spend more than $45 million a year in medium, mainly to create position of leadership, NBC's Richard A. R. Pinkham says in address before Boston Advertising Club. TWENTY different advertisers are spending more than $45 million a year in color tv, mainly to create for them "a position of prestige and leadership which may profit them more in the long run than the immediate sale of the product." This summary of dollar activity by color tv advertisers was offered last week by Richard A. R. Pinkham, NBC vice president in charge of television network programs. He spoke before the Boston Advertising Club. Mr. Pinkham said that color has appeal to advertisers who seek support of their distribution effort as well as the advertising impact on the public. Explaining, Mr. Pinkham said that these companies set up district sales meetings to coincide with the showing of their color shows, or they set up special closed-circuit color tv presentations of their ad campaigns. He noted that the number of color tv sets in use "is still limited" and that the figure at the end of this year may reach about 300,000, but by 1957, the total "will surpass a million and by 1960, 12 million." Mr. Pinkham said the $45 million is being spent in color tv because compatible color can be seen in black-and-white and because they "stand to gain extensive experience in color production," particularly in commercials. Next fall, NBC-TV will have available color kinescope equipment — a lenticular film process which breaks down the color image electronically and then records on special film for processing and readiness for broadcast within three hours — permitting the network's full color schedule "to go through the west coast at the same clock hour as in the East despite the time difference of three hours," he said. For the advertiser, color adds costs ranging from a low of 2% to a high of 15% for an average increase of 10%, Mr. Pinkham said, adding: "This extra cost for color is moderate, it seems to us, when compared to a premium of around 50% charged for four color pages in magazines." He continued: "Still it is more money and it will demand a higher television budget on the part of most advertisers. We think this money will be easily available because when television is completely in color, present criteria for measuring advertising effectiveness will be obsolete, including ratings . . . the trip hammer impact of commercials in color is something no rating service can even begin to reflect. Color provides an emotional stimulus and a vastly increased brand recognition factor that is like a shot of adrenalin to sales." Mr. Pinkham estimated that tv earns about 12Vi% of the total advertising dollar as compared with 7% in 1952. He said "informed sources" see the figure rising to at least 25% "for a total advertising expenditure of over $3 billion for television by 1965." Some of this money will come from other media and some from new advertisers who never used tv before "because it did not offer color," he predicted. Shopping Via Electronics Not Far Off, Pinkham Says WHAT is the "perfect sales tool"? Color tv, says Richard A. R. Pinkham, NBC vice president, but with a qualification: "To me the perfect sales tool will be in your hands when it becomes possible for the customer to order your product electronically from his living room immediately after watching your commercial." Mr. Pinkham also told his Boston Advertising Club audience last week that this day was not too far in the future. He referred to "Centercasting," an electronic system which permits the viewer to order a product after watching the commercial simply by pressing a button, and at the same time express his likes or dislikes of program or commercial also by using the buttons. This system — developed by New York consultant Dr. Alfred N. Goldsmith but as yet not financed — also would provide for an instantaneous and accurate count of the number of sets across the country which are tuned in to each program. Under the system, it is necessary to install little electronic boxes, actually transmitters, for sending out tiny radio signals in code from tv sets to a central receiver. Color Tv May 'Entice7 Retailers, Says Settel COLOR TV may "entice" more retailers to the tv medium because of its very character in permitting display of "fabrics, textures, shades and tones which will help sell merchandise." This conclusion is contained in an article entitled, "Why Retailers Bypass Television," written by Irving Settel, tv sales promotion consultant and television instructor at Pace College, and published in the current Journal of Retailing, published quarterly by the New York U. School of Retailing. Mr. Settel, noting that manufacturers now are redesigning their packages "in the knowledge that color television will greatly affect retail sales," said that color's effect on selling and purchasing across retail counters "means bigger business via the medium of television." He continued: "Many retailers believe that this increased business should stimulate more cooperative advertising, with manufacturers assuming a large part of the retailers' television budget. Perhaps here lies the answer to some of the retailers' problems." In reference to radio, however, Mr. Settel indicated that retailers at present still prefer this medium over tv because "radio advertising was much cheaper and frequently just as effective as television for every dollar spent." #Andre the Analyst7 Gives WHAT sort of people does their handwriting show advertising men and women to be? Last week, "Andre the Analyst" told all. As a whole, said Andre, they are "extremists . . . quick tempered, idealistic, suspicious. They have more phobias than most people, more inferiority complexes. But they have more ego, less virtue." "Andre the Analyst" based his conclusions on an examination of hundreds of handwriting samples from the advertising gentry. In a slogan contest conducted by Westinghouse Broadcasting Co.'s WOWO Fort Wayne, Ind., each entrant was offered a personal character analysis based on his handwriting. At a luncheon for newsmen last Wednesday in New York, WBC trotted out Andre and had him tell what he found. With obvious delight, Andre broke his findings down according to executive level: Vice presidents — "They are natural reasoners, who rarely make up their minds hastily on important matters," said Andre, who reported he had examined 421 handwriting specimens of agency vice presidents. He found them "pretty prudent . . . cautious . . . wise." But he also found signs of confusion and suspicion — "it could be the expense account problem." Moreover, he said, "36% of these vice presidents' handwritings indicate that this group never wholly makes up its mind about when to stop acting and start living. For example, these men are not capable of deciding whether or not to have the third Martini. The bartender has to." He also reported — almost gleefully, it seemed — certain regional differences: "New York vice presidents indicate more refinement. Chicago vice presidents are more thrifty, while vice presidents in Houston and, to a greater degree, in Los Angeles, show an unquenchable thirst for washroom gossip." Account executives — Andre said about 57% of those he studied are "live-wire types" who "get things done, probably over the dead bodies of timebuyers and clients' Lowdown on Agency People advertising managers. This group thinks up schemes. They are particularly adept at employing every legitimate — and illegitimate — psychological device to achieve an end. Only a few, about 6%, showed a very sensitive nature. Many indicated that they were masters of good repartee, and a generous amount of sarcasm. Many showed themselves as masters of exaggeration. Many are skillful at evasion. . . ." He was smiling as he said it. Timebuyers — Less dynamic, these, but with "a wealth of spontaniety, initiative, courage. Good mixers. Good story tellers. Better cursers than any other group in the business. Sometimes good gamblers." Andre was bewildered by the amount of spiritual conflict he found in this category. Of 647 specimens, he said, 36% are "tough, bourbon-and-water types." While another third have "deep seated spiritual sentiments." Advertising managers of non-agency companies— Andre was a bit cautious here. He said he had studied 409 ad managers' handwritings but his report dealt only with "certain of these men." Of these he said: "This man is a minority personified. He walks around the office backward so he won't have to face an issue. On occasion he feels his executive oats and writes a stern memo to the advertising agency. Then, after he has signed his name, he goes out and gets drunk. This man hopes some day to become a legend. His major gripe is the account executive who directs the agency's Christmas present to the company president rather than to him." And who is this "Andre the Analyst" who knows so much? Andre, WBC officials confessed afterward, is really Guy Harris, program director of WOWO. They hastened to add, however, that in addition to being one of WBC's top station program chiefs he is also, on a sideline basis, a professional graphologist, or handwriting analyst. It turns out that he takes in handwriting on the side and apparently does a thriving business at something like a buck per submission. Brave fellow, too. Obviously. Page 36 • March 5, 1956 Broadcasting • Telecasting