Sponsor (Oct-Dec 1964)

Pi:&1»lisli.ex*'s Repoirt What makes an advertising agency big? In my Dec. 7 column I asked, "What makes an ad agency big?" 1 answered my own question by referring to Sponsor's 1964 analysis of top-50 agency billings (page 18 of Nov. 16 issue). I pointed out that 34 of the top-50 invest 50 percent or more of total billings in tv and radio advertising. Fifteen invest 70 percent or more. Six invest 80 percent or more. I further stated that "since these 50 agencies represent many hundreds of diversified clients, whose ad budgets seem to prosper in the invigorating climate of air advertising, it's obvious that big agencies have discovered that there's a definite relationship between emphasizing air advertising and growing bigger." My commentary didn't go unnoticed by TvB. They wrote, "It was of special interest to TvB because a few months ago we made a similar analysis. "TvB's report was issued in letter form only to some 120 agency heads. We made no attempt to place it in the press, but now this seems like a timely opportunity to turn it over to you in case you would like to follow up your own report with ours. Mr. Cash (Norman Cash, president of TvB) received excellent response from the recipients of his letter. Many expressed agreement with the findings that agency growth is related to television activity." Mr. Cash's letter analyzed the billing growth of 31 agencies over the decade ending last year. Ten of these agencies grew 200 percent or more in billings between 1953 and 1963. Eight of these placed at least half their 1963 billings in tv. Eleven agencies grew 100 percent to 199 percent. Seven of these placed at least half their 1963 billings in tv. Eight agencies grew 1 percent to 99 percent. One of these placed at least half its 1963 billings in tv. The remaining two agencies declined in billings between 1953 and 1963. Neither placed as much as a quarter of its 1963 billings in tv. I have no doubt that the RAB could make an equally telling breakdown based on leading growth agencies and their purchase of national radio. Last week the advertising fraternity hummed with news of the merger of Needham, Louis & Brorby, Chicago, and Doherty, Clifford, Steers & Shenfield, New York. The resulting firm will be known as Needham, Harper & Steers. I can predict big growth for this agency. Why? Both have grown fast with air billings as their mainstays. Out of about $85,000,000 total billings some $56,000,000 goes to tv and radio. DCS&S has been notable in tv advertising; NL&B has placed 33 percent of its air dollars in radio. The merged agency will be strong in both tv and radio, in spot and network. If I were buying stock in an advertising agency I'd pick one whose air activity is on the upbeat. At least I'd know I'm in tune with advertising dynamics. TT-^M/ XJJuf^^'t''^^^^ — COVERAGE: WHAT IS IT? A few years ago the A. C. Nielsen Company made its last attempt to measure effective coverage. In spite of the abuses perpetrated upon these figures by advertisers and stations and in spite of the techniques with which many found fault, the idea of measuring delivered audience rather than signal strength had much merit. Better coverage by a station must mean more people or it doesn't mean anything. 50,000 watt WPTR has a 50,000 watt competitor along with lesser signal stations yet look at the figures: 10 County Outer Survey Area (Pulse, July '641 6AM-6PM, M-F r I Station Per Per Per 1/4 hr. V4 hr. 1/4 hr. Aver. Aver. No. Share 24 Rating 4.3 Homes : WPTR 6609 : X 14 2.7 4150 : Y 12 2.3 3535 ; z 2 .4 615 ; So you see, sigr lal strengt n alone does not determine effective coverage. Ask your East-man for a complete analysis, and remember this is just a measurement of the ten counties immediately adjacent to the metro area. The further away you get the greater is WPTR's relative lead and the MORE PEOPLE PER $ WPTR DELIVERS THAN ITS COMPETITORS! Coverage: More people per tising dollar on WPTR adver Perry S. Samuels Vice President and General Manager —WPTR % Ask your Eastman about . % WPTR Represented by the Robert E. Eastman Company fifteen forty PTR 50,000 Watts ALBANY — TROY 1540 KG SCHENECTADY December 21,1964