Broadcasting Telecasting (Apr-Jun 1958)

ADVERTISERS & AGENCIES CONTINUED A SALVO SOUNDS FOR SPOT TV • The Katz Agency updates its coverage-cost study • Network tv claimed to be overshadowed by spot The Katz Agency, station representative, has passed new ammunition to Madison Ave.'s time salesmen to use in booming for spot television. On the receiving end: network tv. The representative firm has brought up to date a presentation it released a year ago that compares the coverage and cost of spot tv to network programming. According to the new data, spot tv's "margin of efficiency" over network has increased in the past year. In that period, says Katz, there has been an increase in the use of syndicated halfhour shows by both national and regional advertisers. Compared is a 100-market NBC-TV lineup, which Katz reports as having a potential 38 million tv homes, with a 60-market spot buy which "covers" 34.9 million unduplicated tv homes but delivering "a total of 40.1 million viewing opportunities." According to the Katz story (a color slide and flip card presentation called "How to Make a Tv Half-Hour Work Overtime") now being shown advertisers and agencies: A 60-market spot program buy (between 6 and 11 p.m.) delivers a 2.1 million more viewing opportunities at $11,700 less per showing than the 100-market network buy, or $47,400 compared to $59,100 (Katz points out that the comparison is based on the most expensive rate on the most expensive station in each spot market). The original presentation (which came out last year) had a similar comparison showing network at $57,200 and spot at $45,200 and based on a 100-market NBC network lineup with a potential coverage of 34.5 million tv homes and spot's unduplicated tv homes covered at 31.4 million with delivery of a total 35.1 million "viewing opportunities." Thus, the representative then claimed the spot buy delivered 600,000 more viewing opportunities at a saving said to be $12,000. Hence, the Katz agency is pointing to what it believes is the greater number of viewing opportunities from the spot tv buy, which from the figures presented show a total approximately VA times greater than it was a year ago. By buying the lowest priced^station in the market between the hours of 7-11 p.m., the spot advertiser will pay $29,000 for a comparative saving of $30,000 and for 26 telecasts, $754,000 for a saving of $782,600 as against the network purchase (placed at $1,536,600 for 26 telecasts). Cost per 1,000 "viewing opportunities" is computed at $1.56 for the network lineup, $1.18 for the spot buy on highest priced stations and 72 cents on lowest priced stations. A similar charting is given for a 30market spot buy against the 100-market network purchase. Savings: $25,500 on highest-priced stations, $38,800 on the lowest priced outlets; on a 26-telecast basis, Page 44 • May 12, 1958 $663,000 on the highest priced and $1,008,800 on the lowest priced stations. For the 30 markets, viewing opportunities are 30.7 million per telecast, according to Katz. Other factors cited by the presentation as to why spot should be favored over network: network program costs are fixed, spot cost is flexible and market-by-market; emphasis in spot can be favored according to market but on a network an advertiser buys the same number of programs weekly in every market; a nighttime network advertiser by "common practice" will be committed to a non-cancellable contract for time as long as 39 to 52 weeks but in spot the maximum commitment is only 13 weeks; commercials can be varied in content for the local market but in network a costly and cumbersome use of cut-ins would be necessary; merchandising services by stations for spot advertisers are available and finally, stations net more from spot programs, and thus there is an added incentive to clear for the time most desired by the advertiser. Katz Also Plans to Target On Local Market Situations The tv sales development department at The Katz Agency in New York has been active on more than one level. The unit has worked up spot-network comparison data (see separate story) on the "national" level. On the local scene, the department at the request of advertisers and agencies plans to work with client stations to develop specialized market information. First such survey already has been completed for an advertiser who makes rifles and ammunition. The survey constituted a poll of viewers of a locally produced sports show on WOOD-TV Grand Rapids, Mich., the cooperating station. The audience was surveyed by the station for general preferences and buying habits in sporting goods and equipment for outdoor activity. B&B Newspaper Campaign Shows 'True Picture' of Advertising Force Benton & Bowles, New York, is currently preparing a series of newspaper ads to show the public and business community the "true picture of advertising's role as an economic and social force." Robert E. Lusk, president of the agency, wrote a Monday Memo on the same subject for an issue of Broadcasting earlier this year [Jan. 27]. The first ad depicts the fact that "advertising has sold something to everyone of us" and the second points out that "advertising can . . . and does . . . create awareness about products and services." The agency lists its 23 clients on the bottom of the ads and describes itself as "advertising and marketing counsel to leaders in American industry." Grey Expands N. Y. Office Area Grey Adv., New York, moves four departments (marketing and research, media, publicity-promotion and accounting) to additional 17,800 square feet at 445 Park Ave., effective May 1. Grey now has 525 employees; 1957 billings were upward of $43.5 million. HOW PEOPLE SPEND THEIR TIME There were 124,943.000 people in the U. S. over April 27-May 3. This is how they spent their time: 12 years of age during the week 67.0% 58.8% (83,712,000) spent 1,505.5 million hours watching television (73,466,000) spent 1,013.1 million hours listening to radio 83.7% (104,577,000) spent 422.4 million hours reading newspapers 183.9 million hours reading magazines 232.6 million hours . . watching movies on tv 123.0 million hours attending movies* 32.8% 17.5% 24.5% (40,981,000) spent (21,865,000) spent (30,613,000) spent These totals, compiled by Sindlinger & Co., Ridley Park, Pa., and published excluSIvely by Broadcasting each week, are based on a 48-state, random dispersion sample of 7,000 interviews (1,000 each day). Sindlinger's weekly and quarterly 'Activity" report, from which these weekly figures are drawn, furnishes comprehensive breakdowns of these and numerous other categories, and shows the duplicated and unduphcated audiences between each specific medium. Copyright 1958 Sindlinger & Co. • All figures are average daily tabulations for the week with p->rr»»nt;™ «. *«. j, movies" category which is a cumulative total for the week SindU^t? attending able within 2-7 days of the interviewing week. Sindlinger tabulations are avail SINDUNGER'S SET COUNT: As of May 1, Sindlinger data shows: (1) 107 850 000 people over 12 years of age see tv (86.3% of the people in that age'group)(2) 41,779,000 U. S. households with tv; (3) 46,019,000 tv sets in use in U S. Broadcasting