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2 'Pep* Plan
television audience by making the use of smaller-market stations more economically attractive to the network advertisers.
"The outstanding success of PEP in accomplishing the pur¬ poses for which it was designed, is demonstrated by the fact that in the short period since it was estabished, it has already produced an increase of sponsored programs on PEP stations averaging over 133 station-hours per week," Mr. Frey said. "As a result of PEP, some stations included in the group have doubled and tripled the amount of NBC commercial business for which they have been ordered. Lineup increases brought about by PEP run as high as 28 stations per program — stations which would not have been ordered but for this plan."
"With these results achieved in the first four weeks of PEP's operation, we think the plan has fully justified the expectations held out for it by Robert W. Sarnoff, our Executive Vice President, who stated in announcing the Plan: 'For the stations, it's all benefit and no disadvantage. For the advertiser, it's more coverage and circulation at lower cost. For NBC, it's wide program exposure, and an opportunity to sell business on more small market stations.'"
Among the 21 advertisers who have taken advantage of PEP to expand their coverage, seven have extended their lineups so that they are now ordering the entire initial group of 44 PEP stations. These are: Armour and Co. and the Pet Milk Co. for the "George
Gobel Show"; Liggett & Myers Tobacco Co. for "Dragnet"; the Sunbeam
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Corp., the Radio Corporation of America and the Whirlpool Corp. for "The Milton Berle Show" and "The Martha Raye Show"; and the Chevrolet Motor Division of General Motors Corp. for "The Chevy Show. "
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