Broadcasting Telecasting (Oct-Dec 1963)

L to r: Messrs. Al I port, Schroeter and Smith ANA elects new officers Douglas L. Smith, advertising and merchandising director of S. C. Johnson & Son, was elected chairman of the Association of National Advertisers at its annual meeting last week. He succeeds Ham F. Schroeter of National Biscuit Co. Thomas B. McCabe Jr.. marketing vice president of Scott Paper Co., was named vice chairman. Peter W. Allport was re-elected president. Four new directors were elected: Daniel C. Brown. Baumritter Corp.: Braddock Greene, National Distillers Products Co.: Samuel Thurm, Lever Bros., and M. E. Ziegenhagen. Babcock & Wilcox Co. George H. West, Consolidated Electrodynamics Corp., was re-elected to the board, and 10 other directors will continue in unexpired terms. Mr. Smith, ANA vice president during the past year, has been active on the joint committee of the ANA and the American Association of Advertising Agencies for the Improvement of Advertising Content. Last year he was chairman of the advertising recognition program for the Advertising Federation of America and the Advertising Association of the West. He was with the Melamed-Hobbs agency in Minneapolis, Swift & Co. in Chicago and BBDO in New York before joining Johnson in 1955. areatlv to profits-from-advertisina — and will. ". . . all types of media will be needed, but no medium will be able to stick to the claim that it is economically effective in reaching all of these types " Edward L. Bond, president of Young & Rubicam. reported on three youth studies by Y & R and also predicted that media may be called upon, more and more, "to seek out, through their programing and editorial content, the people who might be willing to buy a brand on the basis of psychological identification, rather than on the basis of age. sex or marital status alone." He said the Y & R youth studies indicate that tomorrow's market will be "stability minded." "security minded." cautious, conservative and with a sense of "copelessness." but also more "civilized" and sophisticated and more desirous of individuality, although plagued with a "continuing sense of frustration." Sexy Soap ■ "The mass market brand that is for everybody." he said, "may well be replaced in the future with brands possessing a variety of more unique 'personalities' with which people can achieve identity by association . . . we could well go into the 1970"s selling soap, not as it's sold today — five different colors to fit any bathroom decor — but soap scented for sophisticated women, for efficient women, for athletic women, for sexy women, and so on." The Y&R study, Mr. Bond said, found that 82% of the young people, "say the government should guarantee advertising's truthfulness." This and other evidences of insecurity found in the study, he said, may mean that consumers in the future will want "reassuring" advertising — "will want to take our word for it" — while the conservatism found in the survey may mean that advertising promoting "old" features of a product w ill be more successful than advertising that promotes the new. Another agency head. Arthur C. Fatt. chairman of Grey Advertising, told the advertisers that the vaunted "revolution" in distribution is too long a word. What it is, he said, is an "evolution." He said "Giantism" will dominate shopping centers 10 years from now, and that specialty stores will continue to increase and grow bigger, but that a counter-trend towards shopping at home is also evolving: "closed-circuit television and the phone will play an important role in speeding this development," he said. "So will coin-vending machines." Klees Explains Plan ■ In a closed session on agency-advertiser relationships Robert Klees of Beckman Instruments Inc. told how his firm, an industrial advertiser, and Erwin Wasey. Ruthrauff & Ryan worked out a new agency compensation plan, effective last July, to assure the agency that it will make a net profit equivalent to 2% of billings on the account. The problem with the traditional 15% media commission system in this case, he said, was that only $600,000 of Beckman's $2.5 million billing is commissionable. A monthly fee system was devised to make sure that the account is profitable to EWR&R. Any radio, television, marketing or research services performed for Beckman are billed separately. Mr. Klees said the plan had "enhanced and measurably improved" the advertiser-agency relationship. In the same session Earl Tiffany Jr. of Carter Products cautioned the advertisers that their agencies should make a profit on their accounts or "they will devote precious little time and energv to it." But he didn't have too much sympathy with agencies' claims that they make a 1% profit. Since this applies to gross billings, he said, in manufacturers' terms it translates out to a 6.66% profit on "net sales." "How many manufacturers' business do you know that are recording 6.66% profit after taxes?" he asked. Progress Report ■ In another closed session the ANA members were given a confidential and generally optimistic report on progress in the current negotiations for new commercial contracts with the American Federation of Television and Radio Artists and the Screen BROADCASTING. November 18, 1963 51