Broadcasting Telecasting (Apr-Jun 1957)

NETWORKS NBC Radio Money Says Its Advertising Pays NBC RADIO last week offered to put up its own money to prove to advertisers that NBC Radio campaigns pay off. The offer is the backbone of a new saleseffectiveness research plan [Closed Circuit, May 6] announced Friday by Matthew J. Culligan, vice president in charge of the NBC Radio Network. The plan is based on the philosophy that radio audience ratings give no real clue to radio's selling ability. To be called "The NBC See-ForYourself Research Plan," the new project sets up a research fund which will pay all costs up to $10,000 of sales effectiveness studies for NBC Radio advertisers whose campaigns meet certain basic criteria. The basic requirements, Mr. Culligan said, are that the campaign be of sufficient length and involve sufficient frequency to give a measurable result of its effectiveness, and that it contain exclusive copy points which will allow the advertiser to isolate the effectiveness of radio from that of his advertising in other media. Explaining the background and purpose of the new plan, Mr. Culligan said: "Most of the recent network radio purchases by knowledgeable, deliberate advertisers and agencies resulted from their own sales effectiveness research on test radio campaigns. Extraordinary sales results were proved despite disappointing ratings, leading to the belief that present radio audience ratings are virtually meaningless as an indication of radio's true selling power. We are willing to put network radio to the test of radio sales effectiveness research at our own expense." The research methods will be tailor-made to fit each participating advertiser's needs and accordingly will vary from client to client. H. M. Beville Jr., NBC vice president in charge of research and planning, explained: "To make these studies as effective and revealing as possible, the research techniques will be tailored to meet the specific needs of the individual advertiser. Typical methods which might be used will include such techniques as store audits, test market comparisons, consumer panel studies and beforeand-after surveys of brand awareness and acceptance. "The specific technique to be used in each instance will be worked out in conjunction with the research director of the advertiser and his agency." The "minimum requirements" which an advertiser must meet to take advantage of the plan also will vary, depending upon a number of factors. In general, however, NBC would expect the campaign to run at least eight weeks and to involve commercials that are at least 30 seconds in length. As for "minimum" number of commercials per week, Mr. Culligan pointed out that one advertiser who used around 80 half and full-minute commercials per week, Monday through Friday, found measureable results a little more than eight weeks after the campaign started. Another was able to trace results to radio on 20 announcements scheduled entirely on weekends. Thus, the Page 58 • May 20, 1957 time of week will be one factor to be considered along with frequency. NBC officials said full details of the plan are being compiled in writing for submission to the research directors of all advertising agencies within a few days. CBS-TV Signs Nine Renewals For Gross of $14 Million SIGNING of nine advertisers to renewals representing $14 million in gross billing to CBS-TV was announced Thursday by William H. Hylan, vice president of sales administration. The renewals involve four nighttime and seven daytime programs. Nighttime: Nestle Co. for Oh Susanna on alternate weeks (a Hal Roach Studios package through Bryan Houston Inc.); Thomas J. Lipton Inc. for Godfrey's Talent Scouts on alternate weeks (Young & Rubicam); Schlitz Brewing Co. for Schlitz Playhouse weekly (J. Walter Thompson Co.), and Time Inc. for Person to Person on alternate weeks (Young & Rubicam). Daytime: General Mills for Lone Ranger on alternate weeks (Dancer-Fitzgerald-Sample); Kellogg Co. for Wild Bill Hickok (Leo Burnett Co.); Standard Brands for Arthur Godfrey Time (Ted Bates & Co.); Campbell Soup Co. for Garry Moore Show and Art Linkletter's House Party (both Leo Burnett Co.) ; Swift & Co. for parts of Linkletter's House Party (McCann-Erickson) , and Nestle Co. for Lone Ranger (McCannErickson). NBC Credits 'No Waste' Plan For O&Os' Added Revenue THE five owned-and-operated NBC radio stations are gaining additional revenue at the rate of $1.5 million per year as the result of NBC Radio's "no waste" sales policy, it was announced Thursday by Thomas B. McFadden, vice president of NBC owned stations and NBC Spot Sales. The no waste policy permits NBC Radio affiliates to sell unsponsored network time on a local basis. Initiated less than six months ago, the plan proved its merit almost immediately, according to a survey of the NBC owned stations, he reported. Commenting on the survey, Mr. McFadden said: "The no waste plan has greatly increased local sales by permitting stations to solicit sponsors for time periods which were not previously available locally. The enthusiastic response by local advertisers once again proves the tremendous sales impact of the radio medium". NBC-TV Signs to Televise Pacific Conference Games NBC-TV will televise four football games and 10 basketball games of the Pacific Coast Conference next fall and winter, it was announced jointly last week by Tom S. Gallery, NBC's sports director, and W. J. Parry, radio and tv director of the conference. West coast sportcaster Chick Hearn will be the play-by-play commentator for all 14 telecasts. The four regional football dates, all Saturdays, are Oct. 12, Oct. 26, Nov. 9 and Nov. 23. They will be seen only in National Collegiate Athletic Assn. District 8, which includes California, Oregon, Washington, Idaho and Nevada. The 10 basketball contests will be presented on consecutive Saturdays starting Jan. 4. NBC-TV also has exclusive tv rights to the national nine-date grid schedule approved by the NCAA. Arrangements are being made for the network to carry regional telecasts in other areas on the same four dates as the PCC regional program. Del Monte First to Use NBC Radio C-C Broadcast NBC Radio's "Hot Line Merchandising Plan," by which sales executives can instantly brief regional distributors from coast to coast, was used for the first time Tuesday by Del Monte (California Packing Corp.), it was announced last week by Matthew J. Culligan, vice president in charge of the NBC Radio Network. The plan involved the use of a closedcircuit broadcast, during which Del Monte executives told their sales representatives in 24 cities about the company's sponsorship of one-quarter of the NBC News-on-theHour broadcasts, starting today (Monday). The 25-minute closed circuit broadcast, originating live in New York, Chicago, Washington and San Francisco, included a promotional description of News-on-theHour by NBC commentators Chet Huntley, David Brinkley, Leon Pearson and Morgan Beatty. Del Monte's merchandising plans were described by J. H. Allen, divisional sales director in New York; Ross B. Yerby Jr., assistant general sales director, field sales. Other speakers were Mr. Culligan and George Graham, director of sales planning for the NBC Radio Network. Another unique phase of the merchandising plan calls for the use of special transistor radios encased in Del Monte cans which will be carried by the company's salesmen when they make calls on retailers. Use of the radios enables the salesmen to convey the impact of the on-the-air advertising campaign. Affiliates Board Plans Meet For CBS Radio Members in Fall PLANS for the 1957 annual convention of CBS Radio affiliates, to be held in New York Nov. 7-8, were drawn up at a meeting of the board of directors of the CBS Radio Affiliates Assn. in New York last week. Opening day of the convention will be devoted to closed sessions of the affiliates. Second day will consist of joint meetings with network officials, headed by Dr. Frank Stanton, president of CBS Inc. The convention was one of several subjects canvassed in last week's sessions. Another was CBS Radio's $5.5 million contract with the Ford Div. of Ford Motor Co. [B»T, May 13] and its effect on long-range programming plans. Some affiliates have questioned whether they should clear time for the Ford package, on grounds that portions of it eat into lu Broadcasting • Telecasting