Sponsor (Oct-Dec 1960)

ler & Imperial division, Chrysler Corp. on the QXR network (20 stations) plus seven other fm outlets across the country. Through its agency, Young & Rubicam, Chrysler bought a five-minute news analysis show across the board on a 52-week basis. It is called The Imperial Press Club. Tapes originated from the Overseas Press Club in New York. The deal represents $123,000 broken down as follows: $76,000 for time, $30,000 for talent, $17,000 for production. The transaction was handled by Paul H. Raymer Co., Detroit, manager Bob Rains. A study last summer for Heritage stations in five major markets, conducted by Alfred Politz Media Studies, indicated that 30.3% of all U. S. homes are now fm equipped. The study also pointed out that fm families lead the nation's average in incomes, higher education, professional occupations, and buying power. These households, Politz noted, listen to fm 3 hours and 22 minutes on a weekday as compared to RAB's reported average for am radio of one hour and 59 minutes. The "paper work jungle" was penetrated on several fronts in 1960. For one, SRA announced new, simpler, standardized contract forms for use by station reps, in October. This common billing form has been adopted by many of SRA's members to date, with an increase expected after the first of the year. Last May the sponsor Standard Spot Practices Committee proposed a new standardized billing form for radio/tv spot. A flood of favorable reaction poured into SPONSOR offices shortly after the proposal was announced. To date the billing form has been adopted by nearly 150 stations in 38 states. The billing form is not intended to be a statement but is to be used for time charges only. Heading the six-man committee was Ralf Brent, former v.p. and sales director, WIP Philadelphia, now v.p. Metropolitan Bdcstg. Corp. Among radio's other highlights in 1960 were: • Storer Broadcasting's option to buy WINS, N. Y. from Gotham Broadcasting Corp. for a reported $10 million. •The formation of the Negro Radio Association. In late July Storer signed an option to buy WINS from Gotham (Elroy McCaw) for $10 million. The $10 million price is over 20 times higher than the $450,000 McCaw paid for the station when he bought it in 1953 from Crosley Bdcstg. The highest previous radio price was $7.5 million for WNEW in 1957. The Storer option agreement filed with FCC, provided for a $100,000 down payment on WINS which Gotham will keep should the deal fall through. The option will stand until mid-1962. In November, a deal was closed for WMGM, N. Y. by Crowell-Collier Bdcstg. Corp. which topped the WINS price by $1 million. Principals in this sale were Robert M. Purcell, president, Crowell-Collier Bdcstg. and Lawrence Tish and Arthur Tolchin of Loew's Theatres Bdcstg. The Negro Radio Association was organized by charter members representing 37 radio stations and groups whose programing caters to Negro listeners. Francis M. Fitzgerald of WGIV, Charlotte was elected chairman of the new organization at its first meeting in Washington. Stated aims: to promote studies of Negro programing, improve it, develop Negro broadcasting talent. ^ AGENCIES & CLIENTS ( Continued from page 35) house, Mutual of Omaha, 20th Century-Fox, Avco Mfg., Du Pont, Thomas J. Lipton, Brown & Williamson. Cowles Magazines, Bristol-Myers, Field Enterprises, B. F. Goodrich. A gaining number of blue-chip advertisers are using television and network programs to carry to the public their "institutional" or "educational" messages. The television "special" has evolved as a format ideally suited to this kind of marketing tactic. As of October, the three television networks were carrying 300% more sponsored public service programing than in the previous year — encompassing the broad category of information, education, and service. Among those in the front ranks: Aluminium, Florists Telegraph Delivery Assn., American Machine & Foundry. Ralston, and some 11 others for this winter season. Agency compensation : There were varied reverberations from the switching of the Shell Oil Co. account from J. Walter Thompson to Ogilvy, Benson & Mather, hitting at all levels of advertising and broadcast. Tv and radio are affected deeply because there'll be a possible loss of some $4 million in broadcast to print. But broader and more long-range implications are shaking observers as they contemplate David Ogilvy's establishment of a fee system, rather than the time-honored pattern of setting agency remuneration at 15% of media costs. The compensation plan developed by him and by Cyril Martineau, manager of the giant oil firm's advertising department, provides for an annual set fee which returns a 25% profit to OBM over and beyond all out-of-pocket costs. Commissionable media funds are tabbed and at the end of the year either refunded by the agency to the client for the difference above the set annual fee or, if the commissions are less than the figure agreed upon, they are added to by Shell. Ogilvy has come in for a lot of overt criticism about the move, but there are many admen who side with him in thinking he has taken a realistic approach to the problem of agency remuneration in an era of rising costs and slimming profits for agencies. Many accounts and their agencies, in sub rosa fashion, have evolved intricate— and highly personal and secretive— formulas by which they do business together. Most have implemented the rigid 15% system in some way. but none has developed such a pinpointed formula as Ogilvy and talked about it to the entire industry. The move, in sponsor's view, portends greater study of the agencyclient compensation plan and further exploration into new methods. Account shifts: Shell's agency switch was the year's most dramatic. Shifting? of accounts settled down a bit in the second half of the year after a flurrv of activity which saw: PepsiCola from K&E to BBDO: Revlon from LaRoche to Warwick & Legler; Chrysler, with Dodge cars, from Grant to BBDO, Dodge trucks from Ross Roy to BBDO. Desoto-Valiant from BBDO to N. W. Aver. These are typical of major changes. Top 50 agencies: The biggest ad agencies, representing the higgest national advertisers, spend more on broadcast media than their smaller sister shops. This is one conclusion of sponsor's year-end analysis of the top 50 advertising agencies in terms SPONSOR • 26 DECEMBER 1960 53