Broadcasting Telecasting (Apr-Jun 1957)

STATIONS YOUNG QUESTIONS 'POWER' RADIO YOUNG ADAM YOUNG Inc., New York station representative whose list includes several radio outlets with high power, last week said in effect that a so-called "powerhouse" radio station is not necessarily powerful as an advertising medium in today's market. It did so by releasing the second in a series of three critical surveys on the status of radio in the U. S. today [B»T, May 13; Closed Circuit, lune 3], The study states that "implied effectiveness, based upon facilities alone, e. g.. power, coverage, cannot measure a station's true advertiser value. It also implies that a good deal of the power boasted by "powerhouse" station managers is purely physical and that this is not the sort of "power" today's advertiser needs. Rather, the power that sells is programming popularity, the report concludes. The report wastes little time getting to specifics. In fact, it signals its punch on the cover page, by quoting the Roman statesman-poet Cicero: "Power ... is so far from being desirable in itself that it sometimes ought to be refused, and sometimes to be resigned." Things have changed, the report says. "A few years ago," it states, the "powerhouse stations" offered dominance of market, coverage of other, adjacent markets, and penetration of vast rural areas. Furthermore, their rates — "at that time" — were "in reasonable alignment with delivered audiences." But no more do these conditions hold true, the report claims. With the growth of tv and the decline of radio networks, local stations have proven beyond a doubt that it's the popular acceptance of its programming, not the power, that has accounted for their "spectacular audience gains." (To back up this claim, the Young study cites a comparison look at Pulse share of audience data between November 1952 and November 1956. Clear channel stations [FCC Classes I and II] have gained, but regional and local stations [Class III and IV] have bypassed them in audience.) The report goes on: "Often a powerful station will encompass several markets within its signal area (exclusive of its local market). It would appear, therefore, that the advertiser using such a station eliminates the need for employing local radio in each of these markets. While such reasoning was applicable a few years ago, audience measurements do not substantiate this theory today. There are few major markets which are not served effectively by local independent stations. Consequently, listeners need not rely upon stations many miles distant from their own market for entertainment and information." Again, Pulse is cited as proof. But, said the Young study, this does not mean that "powerhouse stations" no longer serve advertisers' needs. In the case of Tampa-St. Petersburg, where the "outside area" constitutes a sizeable percentage of the twin-city market, the effective buying income of the non-metropolitan area (76% of the metropolitan EBI) is "virtually as important as the metropolitan market area itself to national advertisers," thus, power is required. On the other hand, in Phoenix, Ariz., the outside area's effective buying income is but 39% of metropolitan Phoenix' FBI, thus, that area's importance is considerably reduced so far as national advertisers are concerned. Another argument of the powerhouse stations is that they reach America on the move, the car audience. But, asks Young, how many drivers are aware of the station's existence, e.g., call letters, frequency, if ^these stations do not promote themselves via highway billboards? "Furthermore," the study says, "programming must be adaptable to the desires of the traveler (i.e., road bulletins, weather reports, news, and non-distracting entertainment). This format is usually characteristic of the independent station. . . . "It is seldom that this 'auto-plus' audience is of sufficient value to the advertiser by itself to justify paying the higher rates associated with the more powerful stations (again, the exception would hold true in tourist-heavy areas such as Florida)." In discussing this latest report, Mr. Young and his radio research vice president. Bill Crumley, pointed out that they had "no axe to grind," but that the survey merely reflected the Young firm's credo: "Local programming on the grass roots' level." Mr. Young said that he felt network programming was more a liability than an asset to a station's standing. Asked whether this report could possibly injure the rep firm's standing with its own client roster, or at least a segment of it, Mr. Crumley said: "It's a chance we have to take. . . . What's good for radio is good for us." Bob Hope Group Pays $3 Million for WREX-TV A SYNDICATE headed by Bob Hope has bought WREX-TV Rockford, 111., from Greater Rockford Television Inc. for $3 million, subject to FCC approval. Mr. Hope, Martin Gang, James Saphier. Albert Zugsmith, Arthur Hogan and Ashley Robison comprise the organization buying WREX-TV. Messrs. Hope, Gang and Saphier are majority stockholders of KOATV Denver. Messrs. Zugsmith and Hogan have interst in KVSM San Mateo. Calif.. KBMI and KSHO-TV Las Vegas, Nev.. and KULA-AM-TV Honolulu, Hawaii. Mr. Hogan also owns KFOX Long Beach, Calif. WREX-TV operates on ch. 13. with power of 45.7 kw visual, 22.9 kw aural and antenna height above average terrain of 660 ft. The station is affiliated with ABC and CBS and began operation Oct. 1, 1953. Greater Rockford owners include Bruce R. Gran and WROK Rockford. Mr. Gran is theatre owner and WROK interests publish the Rockford Star and Register-Republic. A Greater Rockford balance sheet dated ABC-TV saluted KTVI (TV) St. Louis last Wednesday with a presentation entitled. "No More St. Louis Blues" [B«T, June 3], during which it presented ABC-TV's "gains in the network picture, its improved coverage throughout the country and the outlook for the coming season" to some 500 advertising and broadcastine renresentatives. The presentation also noted KTVI's recent switch to vhf and its ABC-TV affiliation. Pictured at the meeting are (1 to r) Jack Davis, vice president of Blair-Tv, Chicago; James Aubrey, vice president in charge of programming and talent for ABC-TV; J. J. Bernard, vice president-general manager of KTVI; Joseph Thul, advertising manager of 7-Up Co., St. Louis, and alternate sponsor of ABC-TV's Tales of Zorro, and Oliver Treyz, vice president in charge of ABC-TV. KTVI plans to carry almost all regularly scheduled ABC-TV programs in the fall. Page 90 June 17, 1957 Broadcasting Telecasting