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key markets, Pan Am effectively reaches high-income families and tourist prospects. An airline is basically a retailer since its primary goal is to sell tickets, Pan Am believes. "With live commercials, copy can be changed at practically the last minute and, at the same time, achieve an effective, hard-sell retail approach," says an executive on the Pan American account at J. Walter Thompson. "Spot tv has been a very successful direction for Pan Am to take. It allows the company to go into its eleven-or-so markets with a maximum of flexibility." (Pan American switched from network to spot tv in 1958 for more efficient concentration in markets where its traffic volume is largest.)
Hertz has also had success with spot tv. Today, the scene of the man flying through the air into his Hertz car is familiar to virtually all regular viewers of television.
In 1956 (the earliest year spot tv expenditure data is available). Hertz spent $31,480 in the medium. In 1961 the lamount had soared to $1.2 million in spot, $382,000 in network tv. Expenditures in both have continued— and continued to rise. For example, last year Hertz was a par
TABLE IV
GROSS TV TIME EXPENDITURES
YEAR
1963 1962 1961
AIRLINES*
$9,406,000 2,982,000 2,433,000
BUS
$2,110,000 2,063,000 1,743,000
RAILROAD
$1,087,000 835,000 680,000
STEAMSHIP
$49,000
TOTALS
$12,603,000 5,880,000 4,905,000
* Includes small airlines such as Mohawk and Western, In addition to major lines covered Individually in '62-'63 (complete year) chart.
TABLE V
CHANGES IN AIRLINES TV AND NEWSPAPER COSTS, 1963 OVER 1962
AIRLINES
SPOT TV
TWA
+ 99%
Pan Am
-1 19
Eastern
+ 750
United
-H1627
Delta
-f 42
Northeast
-1 882
TOTAL
+ 253
*Sources
Spot: Roraba
ugh
Newspapers:
ANPA
NEWSPAPER
10%
_
8
+
4
—
15
+
5
—
56
— 8
TABLE VI
TV VIEWING BY AIR-TRAVELING BUSINESSMEN
NBC Spot Sales mailed questionnaires to approximately 4000 alr-travelin
9
businessmen
to
determ
ine
th
eir tv viewing hab
ts. Some 522 (13
percent) were completed and returned
Some answers are
as follows:
How many days a week do you usually watch televisior
?
1
Year
ly
air
business
trips
1
Days per week
Total
10 or more
6 9
3-5
6 or 7
30.4%
22.8%
22.7%
27.3%
3-5
33.7
35.9
43.4
27.3
1 -2
19.9
20.1
24.5
28.4
Seldom
16.0
21.2
9.4
17.0
64.1 percent of all resp
ondents
watch television th
ree or more
days per week.
And, among
heavy trave
ers (six or
more trips
per year), 60.3 percent
watch
three or more days
weekly.
Which of these program types
do you watch with some
regularity?
I
Yea.
ly
air
business
trips
!
Type
Total
10 or more
6 9
3 5
Daily news programs
68.2%
65.5%
54.9%
73.6%
Documentary specials
62.5
57.6
64.7
69.0
News analysis or commentary
53.8
50.3
45.1
60.0
Sports events
51.4
55.9
56.9
56.3
Late night variety or movie
33.6
31.1
27.4
31.0
Interview programs
28.7
25.4
33.3
25.3
During which time periods do
you wa
tch television— when
you are away
from home
on
business
trips?
Yea
riy
air
business
trips
Time period
Total 27.1%
10 or more 35.8%
6 9 25.0%
3 5 25.6%
7 9 a.m.
7-11 a.m.
58.5
56.0
64.3
55.8
After 1 1 p.m.
35.2
35.8
32.1
39 5
* Source: NBC Spot Sales
' October 26, 1964
39