Broadcasting (Apr - June 1960)

“LET’S CLEAN UP RATES NOW” Agency warning brings station rep appeal A large group of station representatives communicated an urgent message to their stations last week which implored, in effect: “Let’s clean up the rates muddle now, once and for all, or the muddle will become worse.” The appeal grew out of a luncheon meeting held in New York on June 1, during which L.D. Farnath, vice president in charge of media for N.W. Ayer & Son, warned a gathering of some 50 station representatives that unless radio-tv rates became standardized, “the timebuying staff of Ayer will have to do some buying locally, from time to time, direct with stations (Broadcasting, June 6, May 30) . The overwhelming majority of reps, taking this cue to mean that Ayer and probably other agencies would bypass them to negotiate for lower rates directly with stations, distributed letters and memoranda to the outlets they represent. The points they made could be summarized as follows: ■ The adoption of a single rate would be the most effective way of coping with "the very present rate problem.” ■ A single rate is not always feasible; an acceptable alternative would be the framing of a “clear-cut” definition of “local rate.” ■ A warning that unless “firm” rates are established, there is likely to be stronger upsurge of “back-door,” cutrate, buying attempts by national products and services through local franchisers, brokers and “travelling representatives.” Talk Circulated ■ The representatives who took action either summarized Mr. Farnath’s remarks or enclosed a copy of his talk. A minority took the position that Mr. Farnath’s speech had been publicized widely and further circulation of his talk would be pointless; a few representatives explained they had not sent letters because their stations largely have the “single rate” or have a “strong” definition of the local rate. These include John Blair & Co., CBSTV Spot Sales, and the Henry I. Christal Co. Several of the rep firms, though entirely sympathetic with the plight of advertising agencies in attempting to cope with a fluid rate card, pointed out to their stations that “wheeling-dealing” practices by some agencies has helped to perpetuate rate chiseling. Blair-TV and Peters, Griffin, Woodward were among the reps to make this comment. Though most representatives tried to impress their stations with the grave implications behind Mr. Farnath’s remarks, only a few made strong sugges tions. Most letters called on station officials to weigh the seriousness of the rates situations and asked them to forward any suggestions to their reps. Several reps, however, attempted to prod stations for immediate action. The Katz Agency, for example, sent a letter over the signature of M.S. Kellner, vice president and radio sales manager, and made these observations: “Local, regional and national meat packers ... all must compete for the customers’ dollars. Why should one of them be able to buy advertising at lower rates than his competitors? Why should one agency located in one place be able to buy time for the same manufacturer cheaper than can another agency located elsewhere? “A lower rate for national (or regional) products available through local agencies is unfair . . . “If you can’t go to a ‘single rate card for all advertisers’ policy, would you: “1. Send us a list, by product classifications, of what gets which rate card, no matter how, or from where, it is bought? “2. If any product or service will qualify under such a listing for other than your general (national) rate card, would you send us the rate card that should be used so that we can sell time for you on this basis to those accounts in our area of sales responsibility who qualify by your rules?” Many of the station reps insisted that the rates problem does not exist at many of the outlets they represent, but conceded there are some product areas that produce difficulties. Other station reps who communicated with their clients by mail included Avery-Knodel ; Week; Vernard, Rintoul & McConnell; Bernard Howard ■ Business briefly Time sales Kingston Trio sings pop ■ Seven-Up has bought 17 weekly 5-minute shows on CB,S Radio starting Sunday, June 19. The shows feature the Kingston Trio morning, noon and night on a Monday through Friday basis, plus twice on Sunday. Agency: J. Walter Thompson, N.Y. Miami adventure ■ Five sponsors have picked up the new ABC-TV adventure series, Surfside Six, scheduled for appearance Monday Oct. 3 (8:30-9:30 p.m. NYT). The show, featuring a three-man detective team based in Miami Beach, has been bought by Brown & Co., George Hollingberry Co., NBC Spot Sales, CBS Radio Spot Sales, John E. Pearson Co., Paul H. Raymer Co., and Edward Petry & Co. Some reps have discussed the rate problems by phone with clients or during visits to New York. These include the Adam Young organization, Branham Co. and Robert Eastman & Co. Everett-McKinney plans to send letters but wants to explore the situation among company executives before taking action, while H-R Representatives said officials will hold a meeting on the subject soon. Can thinking men be creative managers? Problems of management and operation in advertising agencies controlled by essentially creative people were canvassed by Morton J. Simon, attorney-atlaw, in a speech before the Mutual Adv. Agency Network in Chicago, June 3. Mr. Simon noted that many agencies are run by creative personnel who are not equipped by nature and temperament to administer managerial functions. He also discussed media discounts, in effect urging agencies not to grant client discounts if they don't fulfill necessary requirements inherent in discount structures involving radio, magazine and other media. Mr. Simon’s talk highlighted a threeday (June 2-4) business meeting of the network, whose members represent agencies in sub-$5 million category. Ken Warren, Warren & Litzenberger, presided as MAAN president over the meetings. Members held workshop sessions and heard committee reports (on special projects, membership, finances and publicity) as well as other speakers, including Norm Mautner, The Mautner Agency, on an accounting system and James M. Hult, American Credit Indemnity Co., on credit insurance as applied to advertising. & Williamson Tobacco Corp., and Whitehall Laboratories Div., American Home Products, both through Ted Bates, N.Y.; Johnson & Johnson via Young & Rubicam, N.Y.; Pontiac Motor Div., General Motors Corp., MacManus, John & Adams, Detroit, and Cluett, Peabody & Co., Lennen & Newell, N.Y. Tuck tape on tv ■ Technical Tape Corp., New Rochelle, N.Y., has started a $1 million network and spot tv campaign on behalf of its line of six Tuck Tape products. Besides a network schedule that includes 33 participations on NBC-TV’s Today and Jack Paar Show, a tv spot drive will be launched this summer in major markets. Agency: Product Services Inc., N.Y. 52 (BROADCAST ADVERTISING) BROADCASTING, June 13, 1960