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SPONSOR-SCOPE continued
Some of the 8tation§ carrying two tv networks have found, so to speak, more than one way to skm the commercial unit cat.
As observed by agencies checking logs: In the event of a network program promo not applying to them, such stations pass up the promo and link together two 20second commercials. In the process they also pass up selling an ID.
Ted Bates goes to the head of the class for the second consecutive "season" as the agency with the most gross tv network time billings. I
The top 10 agencies as compiled by LNA from 1 October 1958 to 30 June 1959:
RANK AGENCY GROSS TV NETVi^ORK TIME BILLINGS;
1 Ted Bates $32,585,000
2 J. Walter Thompson 27,358,000
3 Young & Rubicam 24,627,000
4 Benton & Bowles 22,160,000
5 Dancer-Fitzgerald-Sample 19,663,000
6 BBDO 18,024,000
7 McCann-Erickson 15,436,000
8 Lennen & Newell 11,032,000
9 Leo Burnett 10,169,000 10 William Esty 8,682,000
Note: In evaluating these rankings consideration should be given to the fact that much of the billings are credited to the agency of record and they are not representational of the money spent on programing.
P.S.: The collective billings for the above 10 agencies constitutes a little over 40% of all the tv networks for the nine-months period.
You can expect the competitors to counter CBS TV's latest broad changes in the discount structure with some strong revisions of their own.
SPONSOR-SCOPE found the reaction among agency media directors to CBS' new discount pattern — revolutionary in one respect — somewhat mixed, but the favorable sentiment decidedly outweighed the opposite. A smattering of the pro's and con's:
• Patterning the rate structure to set-usage levels provides a more precise value for the advertiser. This realistic yardstick — revolutionary for air media — is tv's one big [ departure from traditions brought over from radio.
• Setting different values for the various hours of the evening shows (1) the medium has become more competitive and (2) the networks had to yield to mount1 ing pressure from advertisers more discriminating with their dollars.
• The basic idea of allowing substantial discounts for summer recruits is commendable, but the plan contains marked inequities for the 52-week advertisers. [
• The top night-time spenders (like General Foods, P&G, Campbell and Lever), who hold mid-evening spots, will, as a result of the novel time-period discounts, wind up with paying, in effect, rate increases. General Foods agencies estimate the client will have to budget at least an additional $500,000.
The basic changes in CBS TV's discount structure:
1 ) Whereas the station-hour discount goes up for the summer, late evening discounts for the remaining 39 weeks are reduced.
2) The dollar volume for the network's over-all discount is increased from a weekly base of from $100,000 to $130,000.
3) Prime-time advertisers occupying periods before 8 p.m. are entitled to a special j discount of 10' r in the winter and 45% in the summer season.
4) The same 45% summer discount applies for the 8-8:30 period, drops to 40% for the next half -hour and slides to 35% for the 9 to 11 p.m. span.
20 SPONSOR • 10 OCTOBER 1959 I