Broadcasting Telecasting (Apr-Jun 1958)

ADVERTISERS & AGENCIES CONTINUED where payment to you is made within the time specified for cash discount. In the event that any advertising media does not allow advertising agency commission, we shall pay you 15"; of the cost incurred on our behalf in the use of such advertising media: (b) for radio and television talent and production, package shows, announcers, lines and loops, testimonials, baseball rights and printed word production in advertising media, the amounts paid by you to third parties therefore plus 15"; thereof as your compensation except that for package radio and television shows which are paid for in advance of date of broadcast, the 15% commissions will not be due and payable to the agency until the month of broadcast of each episode: furthermore, when the contract with the producer of the show provides for one or more repeat broadcasts, the cost will be allocated to all broadcasts of the same episode in such proportion as we feel is proper and our decision in this matter shall be final, and commission will be paid during the month of broadcast based on the costs allocated to that period. "In the case of radio or television media contracted for by one agency but allocated in part to another agency, the billing agency will prepare an analysis and make the proper transfers of commission to the other agencies concerned in accordance with the following plan: (a) Agency commission for time and facilities will be allocated on the percentages of commercials used by each product, (b) Commission on "package shows" for talent and production costs, prints and license fees will be allocated 25% to the contracting agency to cover its out-of-pocket costs, with the balance divided between agencies on the basis of the percentages of commercials used by the products of each agency, (c) All commission on talent and production costs on agency produced shows will be allocated 100% to the producing agency, (d) In the case of a live show, where one agency handles all of the billing for the presentations of commercials for other agencies the producing agency will retain 25% of the commission on billing for network commercial production facilities, home economists and related charges, (e) In the case of a film show, the agency handling such film show will retain 100% of the commission earned on billings through that agency on handling and splicing other agencies' film commercials into such show. Payment shall be made within 30 days after month of broadcast. "If [blank] co-sponsors a show with another company or if part of a show is sold by us, the amount of commission, if any, to be paid to our agency, will be determined by us in each individual case by review of the existing facts and desires of the parties concerned." Yet another contract specifically identified the agency people who would be in charge of tv and radio production for the client. Another gave a precise picture of the method of compensation for each agency assignment; in the case of radio-tv adver tising placed by the agency, it is as follows "[No charge, except as indicated by note which follows, for] supervising the selection of programs, reading and checking scripts and supervising rehearsals, supervising each telecast or radiocast, television ideas and scripts for commercials, radio ideas and scripts for commercials, selection of stations and contracting for time. Note: On programs and spots broadcast or telecast over stations which are members of the I blank] network, the agency receives from client a service fee as mutually agreed upon based on cost to agency plus 15%. On programs and spots brcadcast or telecast over stations which are not members of the I blank] network, the agency receives the regular agency commission on time from the radio or tv station. If the station allows less than 15% agency commission, agency receives from client the difference between 15% and the agency commission allowed by such station. "[Net cost plus 15% for] program and commercial scripts by outside specialty writers, when authorized by client; story boards when authorized by clients; cost of production and talent for programs, spots and commercials (special musical arrangements, singing commercials, jingles, tunes, lyrics, writers, directors, announcers, producers, actors, musicians, royalties, special fees, films, rights, properties, scenery, haulage, etc.). when authorized by client. "ICost plus 15% for] specialized agency talent to produce commercials when authorized by client." Another advertiser allowed a 16Vi% commission in lieu of fees. One advertiser, on the other hand, submitted a contract which employed the fee rather than the media commission system of compensation. It agreed to pay the agency $375,000 a year, and commissions received by the agency were to be applied against that figure. In presenting these various contracts, ANA made clear that "circumstances vary widely from one advertiser-agency relationship to another" and that "it is difficult, if not impossible, and in any event unwise, to attempt to recommend standard or model forms of advertiser-agency contracts for indiscriminate use." Yet it was felt that "the experience and thinking of others can always be used to advantage, provided it is not slavishly followed," and the examples of actual contracts were offered "in that limited sense only." Aside from these advertiser and agency examples of working arrangements, ANA's Volume 5 contains sections contributed by c O L O R C A S T 1 N The Next 10 Days of Network Color Shows (all times EDT) CBS-TV Colorcasting schedule suspended for summer. NBC-TV L June 2-6, 9-11 (3-4 p.m.) Matinee Theatre, participating sponsors. June 2, 9 (7:30-8 p.m.) The Price Is Right, Speidel through Norman, Craig & Kummel and RCA Victor through Kenyon & Eckhardt. June 3, 10 (8-9 p.m.) The Investigator, Liggett & Myers through McCann-Erickson and RCA-Whirlpool through Kenyon & Eckhardt. ® June 4, 11 (9-10 p.m.) Kraft Theatre, Kraft Foods Co. through J. Walter Thompson Co. June 5 (7:30-8 p.m.) Tic Tac Dough, RCA Victor through Kenyon & Eckhardt and Warner-Lambert through Lennen & Newell. June 5 (10-10:30 p.m.) Lux Show starring Rosemary Clooney, Lever Bros, through J. Walter Thompson Co. June 7 (8-9 p.m.) Perry Como Show, participating sponsors. June 7 (10:30-11 p.m.) Your Hit Parade, Toni through North and American Tobacco through BBDO. June 8 (7-7:30 p.m.) Noah's Ark, sustaining. June 9 (9-10 p.m.) Dinah Shore Chevy Show, Chevrolet through Campbell Ewald. Page 30 • June 2, 1958 such agency leaders as Marion Harper Jr., president of McCann-Erickson; Charles H. Brower, president of BBDO; Robert D. Holbrook, chairman of Compton Adv., and George N. Farrand, treasurer of Young & Rubicam. Advertisers who contributed case histories included National Biscuit, Monsanto Chemical, Olin Mathieson Chemical, General Mills, Hamilton Watch, International Harvester and Quaker Oats, in addition to GE and Reynolds Metals. The principal conclusions of the ANAcommissioned "Frey Report" on agency-advertiser relationships and methods of compensation [Special Report, March 3] also were incorporated. Volume 5 was prepared by the ANA Agency Relations Subcommittee of the advertising subcommittee. Donald S. Frost of Bristol-Myers heads the subcommittee. COUNT OF RADIO SETS BACK IN 1960 CENSUS • Bureau reverses former edict • Holland spearheads movement The 1960 decennial census will tabulate the number of U. S. homes with radio and television sets, following a pattern set in 1950 when tv was a relatively new medium. Radio had been deleted from the census earlier last month when the Census Bureau decided there was no point in making a costly national count inasmuch as nearly every home has one or more radio sets [Government, May 12]. Last week, however, the bureau reversed itself "pursuant to a request made by Sen. Spessard Holland (D-Fla.), chairman of the Senate Appropriations Subcommittee," handling the Dept. of Commerce and Census Bureau budget [Government, May 26], according to Sen. Holland's office, which announced the bureau decision after receiving a letter from Dr. Robert W. Burgess, census director. The radio count was returned to the 1960 census after several days of fast maneuvering. Sen. Holland voiced polite amazement that radio was not to be counted when the subcommittee was questioning Dr. Burgess May 2 1 . The director gave two reasons — the 1950 census figure of 96% radio saturation is still valid; it is not technically feasible to count these receivers. At that point Sen. Holland noted that tv had induced a radio slump which in turn was followed by a radio resurgence. He challenged the propriety of supplying facts to the tv industry and not to aural broadcasters. He explained a "great volume" of requests for radio data had been received by the subcommittee. Dr. Burgess then promised to review the matter. Sen. Holland added his only desire was to have determined the number of American homes with radio and tv sets and the number having access to broadcast service. He said the set audit was important because of the needs of those beyond tv range who need radio weather forecasts, farm information and similar services as well as civil defense information. Last Tuesday the Census Bureau reached Broadcasting