Broadcasting (Apr - June 1960)

BROADCAST ADVERTISING SUMMER DISCOUNT DRIVE EXPANDS Now it’s N.W. Ayer that asks tv stations to consider rate cuts Agitation for reduced summer tv rates, started first by BBDO (Broadcasting, May 2), has spread to other major spot billing agencies. A new probe by N.W. Ayer last week, similar in tone to that of BBDO’s inquiry, for the first time injected a blunt reference to “the higher cost of reaching viewers during the summer.” Two charts, one showing seasonal variations in tv viewing and another the seasonal variation in spot tv cost per thousand, accompanied the letter that went to station representatives over the May 14 weekend. Under the signature of George S. Burrows, media director, the letter asked representatives if their stations planned to adopt a summer rate and urged that the representatives and stations “give this matter careful consideration.” Mr. Burrows drew attention to what he said was a “drop off of tv viewing during the summer months” and to the higher cost problem. He described both as factors of “major concern” to the Ayer agency’s clients. The report of N.W. Ayer’s letter coincided with a strong denunciation of forced summer tv rate discounting issued by Lawrence Webb, managing director, Station Representatives Assn, (see story next page). Acknowledgment ■ Benton & Bowles acknowledged last week that its media people had the question of reduced summer rates “under advisement,” while three other top tv agencies, J. Walter Thompson, Ted Bates and Foote, Cone & Belding, reported either intra-agency or timebuyer-representative discussions. Not one of the agency trio, however, contemplated action. Ed Fieri, BBDO’s media supervisor, held a conference with station representatives on April 28 as a follow-up to his letter that asked tv station managers whether they planned to adopt a summer rate card. Mr. Fieri had looked at the BBDO letter as a routine “inquiry” rounding up station opinion and not as a “rate cutting request.” BBDO, as has Ayer, referred to client interest. Ayer’s chart of seasonal cost variations N.W. Ayer charts summertime cost ■ To emphasize how the relative spot tv costs go up for the advertiser in the summer months as viewing goes down, N.W. Ayer included this chart in its letter to station representatives. It was titled “Seasonal Variation in Spot Tv Cost-per-Thousand.” Ayer based the cost on a 20-second spot in prime time at the one-time rate in the top 150 markets, computed against the total homes using television in the hours 8-10 p.m., Sunday through Saturday. The agency obtained its base (shown as “100” on the chart) by taking an average cost per thousand, January-December. For comparison with the yearly average, a similar C-P-M was figured for each of the 12 months. If a line were drawn along the peaks, a cost curve is obtained starting low in January, moving up during the summer and then dipping down again during the months in the fall season. JWT’s Edward R. Fitzgerald, broadcast media manager and senior timebuyer of the Chicago office, reflected the sentiment of many New York buyers when he advised a midwest meeting of broadcasters (Ohio Assn, of Broadcasters meeting April 29 at Youngstown) that stations might follow the example of the tv networks and reduce summer rates. He included a reverse proposition for radio stations “perhaps radio’s card should follow the sun — higher in the summer, lower in the winter” — in view of the higher summer radio audience. A JWT spokesman in New York last week privately contemplated that tv stations might well take a careful look at their summer rates. It was hinted at this and at other agencies that some advertisers are placing summer money in media other than tv, but if rates were more favorable, the budgets would have landed in tv’s coffers instead. While the networks, the Westinghouse stations and some other leading outlets have announced tv rate discount plans for the summer, station representatives and individual stations across the nation are in vigorous opposition. Some — for example Michigan stations WWTV (TV) Cadillac and WPBN-TV Traverse City — directed attention to the year-round business enjoyed by stations in vacation areas. Case for Increase ■ Gene Ellerman, vice president and general manager of WWTV, wrote BBDO that the station has considered a change of summer rates, but not in the way contemplated by the agency: “We have considered raising the card.” Mr. Ellerman explained the station had been planning the action in view of a greater number of residents in the area from June to September than at other times of the year. “Our national business increases during the summer,” he wrote, while local business “practically doubles.” Mr. Fieri last week indicated that BBDO apparently feels it has accomplished its objective. Within a week, the agency expects to have a lineup of “important major markets” available to its clients showing where an advertiser can buy announcements in the summer period at a “less expensive” rate than in the winter. BBDO also will incorporate some of the opinions it has received from stations. BBDO, Mr. Fieri said, has had more Continued on page 34 30 BROADCASTING, May 23, I960