Broadcasting Telecasting (Jan-Mar 1958)

ADVERTISERS S AGENCIES continued CHRYSLER CHOICES HEAVY ON TV • For Chrysler Div., Y&R; institutional, export to Burnett • Still loose: Chrysler's Canadian business, Ford's Lincoln Automobile numu lecturers more and more are seeking from their advertising ageneies such definitive and varied specialized services as a good creative copy approach, a si rong and sizable field organization, merchandising know-how. advertising support geared to dealers' needs and a sound knowledge of media, particularly television. I hove pretty much represent the requisites Chrysler Corp. sought — and feels it found —in the selection of Young & Rubicam lasi week for its Chrysler and Led Burnett Co. for its institutional and export passenger car accounts. Young & Rubicam. New York, and Burnett, C hicago, will divide pretty evenly .in estimated S20 million in domestic billings relinquished by McCann-Erickson last month in favor of General Motors' $24 million Buick account, with Y&R understood to have a slight edge. In selecting them, Chrvsler turned outside its immediate "family of agencies" (BBDO. Grant, N. W. Aver & Son, Ross Roy) for new agencies. The appointments, announced Monday, helped settle a generally muddied Detroit picture involving agency assignments. Still left unsettled, however, as of Wednesday: • Chrysler's part of its Canadian business dropped by M-E. • The $4-5 million Lincoln account from Ford Motor Co.'s Mercury-Edsel-Lincoln stable (Foote. Cone & Belding has Edsel and Kenyon & Eckhardt services Mercury). Burnett's corporation account appointment was announced by James Cope. Chrysler Corp. vice president for corporate market planning, and its choice as export agency is being reported today (Monday) by Nicholas Kelly Jr., Chrysler Corp. vice president and Export Div. president. Selection of Y&R was announced by E. C. Quinn. Chrysler Div. president. The decisions reportedly were made as late as last weekend following client-agency meetings in the motor city. They were said to reflect Chrysler's partialitv for strong "television agencies'' and its need for numerous services as well as the hefty billings record of the two agencies and the continuing shift of major accounts to "big name" agencies. [Lead Story, Dec. 30. 1957]. No date was given for any of the three, but it's understood both Y&R and Burnett will start work immediately. Chrysler institutional network monies reportedly run about S7.5 million encompassing participation for Chrysler, Imperial and other cars and cross-promotion commercial activity on the corporation's CBS-TV Climax and Shower of Stars. Burnett will ride herd at the corporate level, over-seeing all products. Thus, the rule-of-thumb for participating agency commissions will prevail. On the export business. Ross Roy will continue servicing the truck account and advertising agencies serving the corporation's passenger-truck operations overseas and selected in local areas based on individual Page 54 • March 3. 1958 markets. Export covers shipment of cars to Canada, Mexico. Cuba and Venezuela, the division billing about $1 million for passenger vehicles. (Ross Roy already handles all but tv lor Chrysler of Canada Ltd.) Burnett already maintains a Toronto office, where it services P & G. Pillsbury and other accounts, and won't be required, it's understood, to open any other non-domestic branches to handle export. (In total billings. Young & Rubicam ranked third with about $230 million and Burnett 11th with around $80 million.) Last week's decision sent Burnett executives into a flurry of activity, occasioned largely by the fact it has no Detroit office at present. The agency's plans in that respect were in the speculative stage, beyond the obvious fact it would open one. It was understood Burnett would handle the major creative effort in its Chicago headquarters. Richard N. Heath. Burnett president, said, "We have an all-encompassing supply of capable personnel in Chicago to handle the account.'' indicating Burnett does not intend to pirate people from other agencies. It's learned that F. Strother Cary Jr., administrative vice president and executive assistant to Messrs. Burnett and Heath, will be named account supervisor on the Chrysler account. William L. Diener, Burnett vice president, will be agency management representative. Burnett Co. assigns media supervisors to develop media plans based on market and media research and copy strategy. The plans are reviewed by a group of three executives — headed by Leonard S. Matthews, vice president in charge of media — responsible for media policy execution and administration. The others are Tom Wright, manager of media, and Dr. Seymour Banks, media planning and research manager. Often considered top-heavy in tv (at the expense of radio), the agency is strong on media generally, a major consideration in Chryslers selection. Burnett's media team keeps a steady eye on rising network tv costs, firm 52-week contracts, double-triple spotting practices, the tendency toward over-emphasis on quantitative (instead of qualitative) aspects of ratings services and uncertain rate structures that tend to minimize spot radio's desirability in the view of some clients. Of particular significance at Burnett is the expansion in recent weeks of its tv commercial department (the agency turned out some 3.200 commercials last year) and development of new animation concepts. It maintains film production facilities in Chicago. New York and Hollywood. It's expected Burnett will transfer several key people to Detroit in the weeks ahead. Meetings were held with Chrysler daily this past week and in Detroit Feb. 21. Emphasis on the varying types of broadcast media at Burnett can be ascertained by its 1957 billings, showing network tv, spot i\. spot radio and network radio ranking in that order, with total tv outdistancing total radio $43 million to $6 million. Young & Rubicam already has offices in Detroit as well as in New York, Chicago, San Francisco. Hollywood, Los Angeles, Montreal. Toronto and overseas. It had total tv billings of $85 million last year, with the same ranking among the various broadcast media as Burnett. Y&R had serviced Lincoln three years and earlier had been in the General Motors agency family. The agency previously handled Packard Motor Car advertising for nearly 20 years before losing it to Maxon in the early 1950s. Three years ago it picked up the Lincoln account from K&.E. Ironically enough, Chrysler account resignations by McCann-Erickson for Buick came almost simultaneously with a reported record all-time sales and earnings report by Chrysler for 1957. (Sales for all products were up 33% and earnings six-fold last year. Sales: $3.5 billion; earnings, $119 million.) And its Plymouth beat out GM's Buick for third place in auto sales. Commenting on the appointment of Y&.R for Chrysler Div.. Mr. Quinn stated that "in selecting one of the most enterprising and respected agencies in the advertising business to present the Chrysler and Imperial cars to the public, we are confident that its experience and talents will give increased merchandising support to the sales programs of our dealer organizations." Sigurd S. Larmon, Y&R president, stated, "We are happy to become associated with such an outstanding manufacturer of fine cars. We believe our experience and creative talents are particularly suited to the marketing opportunities presented by Chrysler and Imperial automobiles." Announcing the selection of Burnett by Chrysler, Mr. Cope said that the Burnett agency was picked because of a high degree of creativity and its outstanding successes in many product merchandising fields utilizing all media, particularly in television. Burnett has a "sound record of accomplishment in newspapers, magazines, television and radio that is so essential to our automobile company's needs for an aggressive and balanced advertising program." Mr. Cope pointed out. "In view of the importance of our television shows, Climax and Shower of Stars, a significant factor in the selection was Burnett's success in all types of television programming." he added. Leo Burnett, agency board chairman, expressed delight "with the opportunity to become associated with a fast-moving, progressive and competitive automobile company." Involved in Burnett-Chrysler negotiations were Messrs. Burnett, Heath and Cary, and W. T. Young Jr., Burnett executive vice president: and for Chrysler, Mr. Cope: Richard E. Forbes, director of corporate advertising, and J. R. Barlow, product advertising manager. Participating in Y&R-Chrysler talks along with Mr. Larmon, were Frank Fagan, senior vice president, and Randolph T. McKelvey, vice president. Still under discussion was the remainder of the disengaged Chrysler business — its Broadcasting