Sponsor (Oct-Dec 1962)

NEWSMAKERS OF THE YEAR 1962 YEAR-END REPORT: AGENCY BILLINGS Charles Brower BBDO, led by president Brower, sparked a considerable amount of industry discussion on timebuying by machine when his agency became first to install a computer Dave Luncly When rep John Blair consolidated its two tv sales arms under one operational tag, Blair Television, the former executive v.p. of Blair Television Assoc, was named head Hubbell Robinson He returned to CBS TV in March as senior v.p. in charge of programs, despite fact he quit his executive v.p. post there three years ago to produce own programs Radio/tv outstrip all Top 50 agencies have strong year in broadcast billings, but survey reveals uneven growth in dollar total and share of business Broadcast advertising scored another gainful year in 1962. When the last adding-machine cranks to a halt this week, Madison Avenue treasurers will have their air spending pegged at about 9% ahead of 1961. The collective estimate of the top 50 ad agencies hit an all-billings total of nearly $3.5 billion. Of this total, approximately $1.8 billion, or 52%, was in radio/tv billings. The top 50's broadcast estimate is 8.7% higher than last year. The growth of total billings in all media appears to have been slightly less vigorous. The top 50 agencies racked up $3,455.3 million this year, which is 7% ahead of 1961, but is nearly 2% below the percentage increase in air billings. During 1962 itself, the roster of the top 10 did not change materially from preceding years, although there was some reshuffling of position. A notable advance was made by Leo Burnett, which rose from eighth to fifth place in air billings; a drop was experienced by McCann Erickson, taking it from fifth place down to tenth. (However, its Interpublic sister, McCann-Marschalk, appeared for the first time in the top 50 agency listing.) Based on information supplied by the leading agencies, sponsor estimates that the radio/tv billings of the top 50 rose by $144 million, or 8.7%, to $1,795.8 million. Total billings from all media are estimated at $3,455.3 million, which is a gain of $266.5 million or 7.01%. Within the broadcast area, tv network billings of the top 50 are thought to be $1,019.3 million, representing an advance of $74.5 million or 7.9%. Tv spot is up by 10.6% or $53 million, at $553.5 million. Radio billings also increased. Network advertising placed through the top 50 agencies showed a gain of $3.5 million or 9.6%, to $39.6 million. Radio spot business is estimated at $183.4 million, which yields an extra $1.7 million, or 0.93%. Top 10 dominant. The trend toward concentration of national broadcast billings continued. Analysis of the returns, given by agencies to sponsor each year, shows there has been a steady move towards this concentration within the first 50 agencies. In 1956, the larger part of the broadcast budget was spent by the broad base; that is, approximately 40 agencies were responsible for 63.6% of the air billings. However, the share of the broad base has steadily declined since 1956: in 1961 it had dropped to 51.7%, and in 1962 — for the first time — the greatest number of agencies spent the smallest part of the broadcast dollar. In round numbers, 40 agencies spent only 49% of the total for the top 50, and decisive control of the national air budget rested with the 10 agencies at the head of the list. Not everyone gains. Detailed study of air billings over a sevenyear period reveals there has been uneven growth by the ad shops in the top 50 group. For example, the dollar total scored by the "giants" (numbering three to five agencies) has increased substantial 32 SPONSOR/24 December 1962