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'SPONSOR-SCOPE
17 DECEMBER 1962 / C«gyrlght 1982
Interpretation and commentary on most significant tv/ radio and marketing news of the week
There's trouble brewing for the first time in Esso's tv domain.
If there's a breach in the uncommonly amicable relations that have existed between the account and local broadcasters for 30 years, it'll be due to a set of conditions that Esso, acting through McCann-Erickson, has appended to contract renewals for 1963.
The conditions that have miffed stations, particularly in the larger markets:
1. Renewals are for six months, instead of a year, something that had become almost traditional with Esso.
2. Through July, August and September Esso Reporter periods are to be cut back from five to three a week.
3. Stations accepting the six-months renewal must guarantee that the other two spots will be restored to Esso come October.
4. Despite the cutback Esso will be entitled to each station's maximum discount; in other words, if the maximum discount covers 260 broadcasts that privilege is Esso's.
Among major station reactions, as voiced by reps: Esso may not be aware of the fact that though participation rates have been steadily going up through the years the rate on programs has remained fairly static; hence the company is not in too strong a bargaining position, even though its 52-week status is quite desirable.
Esso's story is that the summer cutback relates strictly to efficiency as compared to the rest of the year. Inferred is this: it would be expedient for the stations in the 86 Esso or Enco, Reporter markets to tailor the summer rates to the lowered efficiency.
For McCann-Erickson it's a pretty tight squeeze. Time is of essence. It's got less than two weeks, taking in account the holiday ferment and vacation, to rake the renewals in these 86 markets.
The budget for the Reporter runs somewhat over $3 million.
What may rate as a record number of home impressions for any one market within a threeweek period is the blitz that Norelco (LaRoche) has mounted for New York this month.
The buy: several hundred ROS spots on the tv networks' three New York flagships over three weeks; 140 spots a week for two weeks among six New York radio stations. Estimated home impressions for the commercials: 70 million.
A topic of bemusement among Madison Avenue's tv fraternity the past week: the marked differences between the ARB and Nielsen national ratings for October.
The disparity in quite a number of shows runs to 20-25% — a rather unusual spectacle.
As things stood when this issue went to press J. Walter Thompson had enough on the credit side to make it the No. 1 agency for 1962 in gained billings.
Here's how the migrating of accounts with air media stakes balanced out on the year
for several agencies, as calculated by SPONSOR-SCOPE:
AGENCY
TOTAL ACCOUNT GAINS
TOTAL ACCOUNT LOSSES
BALANCE
J. W. Thompson
$18,000,000
$ 2,500,000
+$15,500,000
Grey
14,000,000
1,500,000
+ 12,500,000
Needham, L. & B.
11,000,000
2,000,000
+ 9,000,000
William Esty
9,000,000
5,000,000
+ 4,000,000
Kenyon & Eckhardt
4,000,000
0
-f 4,000,000
McCann-Erickson
6,000,000
3,500,000
+ 2,500,000
BBDO
2,000,000
29,000,000
— 27,000,000
Ted Bates
7,000,000
11,000,000
— 4,000,000
SPONSOR/ 17 DECEMBER 1962
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